10 Common mistakes in human resource planning and how to avoid them

According to Gallup, replacing an employee typically costs from one-half to two times their annual salary in recruiting and training expenses. So, for a manager making $60,000 a year, that’s at least $90,000 in replacement costs alone. This is just one example of how HR mistakes can significantly impact a company’s bottom line.

When companies get HR planning wrong, the ripple effects are felt throughout the organization. Poor hiring decisions lead to decreased team productivity, high turnover creates constant disruption, and misaligned workforce planning can result in either costly overstaffing or burnout from understaffing. Add potential legal issues from improper HR practices, and the financial impact becomes even more severe.

Yet despite these high stakes, many organizations continue to make fundamental HR planning mistakes. Some don’t keep good records, while others ignore the importance of diversity or fail to plan for future leadership. These errors don’t just hurt profits—they can damage company culture, reduce innovation, and make it harder to stay competitive.

How to avoid them? Let’s talk about it.

What is human resource planning?

Human Resource Planning (HRP) is a strategic process that helps organizations make sure they have the right number of qualified people in the right positions at the right time to meet their goals.

For example, if a tech company plans to open a new office in two years, HRP helps them figure out:

How many software developers they’ll need
What specific coding skills these developers should have
When they should start hiring
How much they’ll need to pay these new employees

The three components of human resource planning

Human Resource Planning (HRP) works like a puzzle with three essential pieces that fit together. These components help organizations prepare for their future workforce needs, develop their employees, and address any shortages or surpluses in their talent pool. Let’s explore each piece:

Workforce forecasting involves predicting an organization’s future staffing needs. Companies analyze their business goals, upcoming projects, and potential changes to determine how many employees they’ll need and what skills will be required. This process helps organizations prepare for growth, adapt to industry changes, and maintain proper staffing levels.
Talent management focuses on developing and retaining valuable employees. Organizations create programs to improve employee skills, provide career growth opportunities, and motivate workers. This includes training programs, career development plans, and performance recognition systems. Good talent management ensures companies have skilled, committed employees ready to take on new roles as the organization grows.
Gap analysis examines the difference between an organization’s current workforce capabilities and its future needs. Companies assess their existing employee skills and compare them to projected requirements. This analysis helps identify whether the organization needs additional training for current employees or must hire new staff with specific skills. Gap analysis ensures companies address workforce shortages before they become problems.

Understanding these three components helps organizations:

Plan better for the future
Make smarter hiring decisions
Invest wisely in employee development
Stay competitive in their industry
Avoid sudden workforce shortages or surpluses

What is the goal of HR planning?

The goal of HR planning is to ensure organizations have the right people with the right skills, in the right positions, at the right time, and at the right cost.

HR planning aims to:

Maintain an optimal balance between the company’s workforce needs and available human resources. This means having enough qualified employees to handle the work without overstaffing or understaffing.
Align human resource capabilities with business objectives and help the organization achieve its strategic goals. It ensures the company has the talent to compete effectively and grow sustainably.
Better manage the company’s labor expenses by accurately forecasting staffing needs, preventing unnecessary hiring, and making informed decisions about training and development investments.
Help organizations stay compliant with labor laws and regulations by ensuring proper staffing levels, maintaining required certifications, and following fair employment practices.
Enable the organization to prepare for expansion, new projects, or market changes by having the right talent ready when needed.
Maintain high productivity levels by ensuring employees have the right skills and are properly allocated to different roles and projects.

Why is human resource planning important?

Effective human resource planning ensures that an organization has the right number of employees and that each individual has the necessary skills and support to contribute meaningfully to the company’s goals. Below are some of the key reasons why this careful, forward-looking approach is so important.

Strategic business alignment

HR planning makes sure a company’s employees can help achieve the company’s goals. It helps managers decide what kind of workers they need now and in the future and what skills these workers should have. By planning their workforce carefully, companies can be sure they’re hiring and training the right people at the right time.

While many organizations focus on workforce numbers, skill sets, and productivity targets, they often overlook an equally critical aspect: organizational culture. A strong, value-driven culture can significantly impact business success, yet many companies fail to align their cultural goals with their strategic objectives.

As Jordan Birnbaum, psychologist and HR tech award winner, notes:

“HR planning most often underestimates or overlooks the need for proactive management of the organizational culture. The frequency with and degree to which articulated values are at odds with the evidence (aka cultural artifacts) is staggering. Most companies that talk about work-life balance also email at all times of night and on weekends. In the meantime, new research shows that investments in culture outperform any other types of investments by just under 300%.”

Cost management and efficiency

Good HR Planning helps companies spend their money wisely when it comes to employees. It helps prevent hiring too many or too few workers, which can be expensive to fix later. Companies can also plan ahead for training costs and salaries, making it easier to stay within their budget.

Talent development and succession planning

Companies need to prepare their workers for future roles and make sure they have backups for important positions. HR planning creates clear paths for employees to grow their skills and move up in the company. This keeps good employees interested in staying with the company because they can see opportunities for advancement.

Competitive advantage

HR planning helps companies stay ahead of their competitors by having better-skilled workers. When companies plan their workforce well, they can respond more quickly to new opportunities and challenges. This planning ensures they have employees with the right skills when they need them.

Risk management

Good HR planning helps companies prepare for unexpected problems or changes. This includes having backup plans for when key employees leave and making sure there are enough workers to get the job done. Planning ahead helps companies avoid scrambling to find workers at the last minute.

Adaptability to change

HR planning helps companies keep up with new technology and changes in their industry. It ensures workers can learn new skills when needed and adapt to new ways of working. This kind of planning helps companies stay successful even when business conditions change.

What are the challenges in human resource planning?

Each of the following challenges requires careful attention and flexible planning. While they can’t be completely eliminated, understanding them helps organizations develop better HR strategies and prepare for potential problems.

Changing business needs

Organizations must constantly adjust their HR plans as business conditions change. When companies grow, enter new markets, or face new competition, their workforce needs can change quickly. This means HR planners must be flexible and ready to update their plans, which can be difficult when dealing with long-term commitments like training programs or hiring contracts.

As businesses evolve, HR teams must go beyond traditional roles and become deeply embedded in specific business units (BU). A one-size-fits-all approach to HR planning can leave organizations unprepared for unique challenges within different departments.

As Jordan, an expert in HR strategy, explains:

“To maximize efficacy, HR just embeds itself further into organizational BUs to develop a sufficient understanding of their business challenges to make a difference. An HRBP in sales should have an entire job, unlike an HRBP in IT. For example, they should be hiring and developing with an eye to the future that can only be developed by true subject matter expertise. The same is true for development. Being an expert in L&D is not enough; it’s just as necessary to be an expert in whatever you’re teaching, from sales to coding to client success. HR generalists should become a thing of the past. HRBPs need real subject matter expertise to be at all effective, including earning the respect of the people they attempt to influence.”

Financial investment

HR planning requires significant money for recruitment, training, and development programs. Companies must balance the need to invest in their workforce with budget constraints. This includes costs for new hiring systems, training materials, and employee development programs. Small mistakes in planning can lead to wasted resources. Sometimes, organizations may need to choose between important HR initiatives due to limited funds.

Imperfect forecasting

Predicting future workforce needs is never completely accurate. HR planners must make educated guesses about future business conditions, employee turnover, and skill requirements. Even with good data and analysis tools, unexpected events can disrupt the best plans.

Technology and data management

Modern HR planning requires good data and technology systems. Organizations need reliable information about their current workforce and the ability to analyze trends. Many companies struggle with outdated systems or incomplete data. Setting up and maintaining good HR technology can be expensive and time-consuming. Getting everyone to use new systems correctly can also be challenging.

Employee resistance to change

Workers often resist changes in their roles or new ways of working. When HR plans involve restructuring teams or introducing new skills requirements, some employees may feel threatened. This resistance can slow down or complicate the implementation of HR plans. Clear communication and employee involvement in planning can help, but managing change remains difficult.

Future talent requirements

Identifying what skills will be needed in the future is increasingly difficult. New technologies and business practices can quickly change job requirements. HR planners must try to prepare for skills that may not even exist yet.

Employee retention

Keeping valuable employees is a constant challenge. Good workers have many job options, and replacing them is expensive. HR plans must include strategies for keeping key employees engaged and satisfied. This includes competitive pay, growth opportunities, and positive work environments. However, external factors like industry changes or economic conditions can disrupt retention efforts.

Technological changes

New technologies keep changing how work gets done. HR planners must prepare workers for new tools and systems while maintaining current operations. Training programs need frequent updates to stay relevant. As automation increases, planners must balance technology adoption with workforce impacts.

10 Common mistakes in human resource planning

Awareness of the following pitfalls can help organizations develop more effective, flexible, and strategic HR plans:

1. Failing to document properly

Poor documentation is one of the biggest HR mistakes many organizations make, yet it’s surprisingly common. When HR professionals don’t keep detailed records, they put their organization at legal and operational risk.

Documentation doesn’t refer to keeping files but creating a clear, consistent record of every important workplace event, decision, and interaction. This includes performance reviews, disciplinary actions, accommodation requests, and even casual conversations that might have future implications.

Many HR professionals believe that good memory or verbal agreements are sufficient, but without proper documentation, they can’t prove they followed the rules or met important standards in strategic human resource planning. In other words, poor documentation can seriously weaken your human resources process.

Example: The Wells Fargo account fraud scandal shows how not keeping good records can cause big problems. From 2002 to 2016, employees opened fake accounts and changed customer information to meet aggressive sales targets. Even when company investigators discovered what was happening, managers ignored the warnings or didn’t take them seriously. If they had properly kept track of the problems and acted on them, they might have avoided major fines. Because of poor record-keeping, Wells Fargo had to pay $3 billion in penalties.

Solution:

Use a digital system that dates and stores documents automatically.
Develop simple templates for regular HR practices like performance reviews or disciplinary actions.
Make it a habit to record important details as soon as they happen.
Train managers on how to write clear, unbiased notes and where to store private information.
Check all files regularly to make sure everything is complete and meets requirements.
Set up automatic reminders so you don’t miss deadlines for updates or renewals.

2. Overlooking diversity and inclusion

Too many organizations see diversity and inclusion as just meeting hiring targets. This surface-level approach fails to create a workplace where all employees feel valued and able to do their best.

Real inclusion means changing company culture, examining biases, and adjusting HR practices and policies to ensure everyone has a fair chance to grow. When companies ignore these deeper issues, they struggle to retain diverse talent, facing high turnover and low satisfaction.

Example: In 2020, Pinterest faced intense criticism for failing to live up to its public statements about diversity and fairness. Françoise Brougher, the former Chief Operating Officer, filed a gender discrimination lawsuit after being shut out of key meetings, paid less than male peers, and subjected to sexist treatment. Former employees Ifeoma Ozoma and Aerica Shimizu Banks also reported racial discrimination and retaliation.

The gap between public promises and internal behavior proved that inclusive talent acquisition isn’t just about hiring diverse candidates—it requires sustained effort to build a respectful, supportive environment at all levels of the human resources process. Pinterest ended up paying Brougher $22.5 million and establishing an Inclusion Advisory Council with the NAACP to rebuild trust.

Solution:

Use blind resume screening and set interview rules to reduce bias.
Form employee groups with real support from leaders and proper funding.
Start mentorship programs that focus on helping underrepresented employees move up.
Perform regular pay checks to ensure fairness.
Offer training that guides real behavior changes, not just awareness.
Track and share data on promotions across all groups to measure progress.

3. Underestimating the importance of succession planning

Treating human resource management succession planning like a backup plan instead of a vital strategy is one of the biggest HR mistakes organizations can make. Succession planning should be part of strategic human resource planning, not an afterthought.

It involves much more than just naming a replacement—it means growing talent within the company, sharing knowledge, and regularly checking future leadership needs. Waiting until a top leader announces retirement leaves no time to train successors or pass on essential information.

An experienced HR professional and Glinda Group’s co-founder and CEO, Laura Martin, shares critical insights on what often goes wrong:

“In my experience, organizations make a few common mistakes related to succession planning.

First, they treat it as a “check the box” exercise, measuring only whether succession plans are in place for whatever roles they deem necessary. Companies spend countless hours chasing and then calibrating lists, but often, when the systems are updated (or the spreadsheet is populated), it’s considered “done” for that cycle, and no further action is taken.

Secondly, many organizations fail to link succession and development planning. These are different but must be connected in order to prepare talent to step into future roles. Many companies also have succession plans that are far too deep in the organization or are only for top executives. It’s often based on the level vs. criticality of the role.

Finally, most organizations don’t truly measure the effectiveness of their succession plans. I have seen countless examples where emerging talent is flagged as “ready in 12-24 months” for years on end, and when turnover happens, even “ready now” successors are passed over in favor of external hires.

Strategic organizations will:

Prioritize the roles – not the levels – that require succession plans

Link development opportunities to those plans, including job rotations, mentorship, coaching, and other development experiences

Acknowledge when the right successor is an external hire

Measure the outcomes, not just the activities.”

Example: When Microsoft’s Steve Ballmer announced his retirement in 2013, the company faced significant challenges due to inadequate succession planning. The lack of a clear successor led to a lengthy public search process, creating uncertainty among employees and shareholders.

This situation highlighted the importance of having well-developed internal candidates and a clear succession strategy, eventually leading Microsoft to improve its leadership development programs under Satya Nadella’s leadership.

Solution:

Map out the skills needed for all key roles.
Start mentoring programs where current leaders guide future ones.
Offer regular leadership training for high-potential employees.
Make sure important knowledge is documented and shared.
Review talent each year to spot and develop future leaders.
Provide challenging projects and job rotations to build leadership skills.

4. Lack of communication

One of the biggest HR mistakes is assuming that sending an email or putting up a notice means everyone understands the message. True communication in HR practices means making sure employees actually receive and understand the information and know how to act on it.

When human resource planning fails to include strong communication strategies, policies and procedures can be misunderstood, and valuable employee feedback can be lost.

Example: In December 2021, the CEO of Better.com fired over 900 employees during a short Zoom call. This sudden, impersonal approach, especially right before the holidays, sparked widespread outrage. It showed how poor communication can damage trust, morale, and a company’s reputation.

As businesses look toward the future of recruitment and talent retention, clear, respectful communication is more important than ever.

Solution:

Use multiple channels (email, intranet, meetings, apps) to share information.
Plan announcements ahead of time with a communication calendar.
Gather feedback through surveys, focus groups, and anonymous suggestions.
Train managers and HR staff in effective communication skills.
Hold regular town halls and Q&A sessions with leaders.
Set up plans for handling tough news in a sensitive, transparent way.

5. Improper onboarding and offboarding

Treating onboarding and offboarding as simple paperwork is a serious HR mistake. These critical steps are part of strategic human resource planning and ensure new hires feel supported from day one and departing employees leave on good terms.

Proper onboarding boosts productivity and engagement, while strong offboarding prevents security problems, protects company data, and keeps valuable HR practices running smoothly. Skipping these steps can lead to disconnected new employees and loose ends when employees depart.

Example: The 2023 data breach at Cabot Ireland shows what happens when offboarding is neglected. Sensitive personal data of former employees, including medical and bank records, stayed in the company’s systems long after they left.

This failure put Cabot Ireland at risk and highlighted the importance of thorough offboarding in recruiting and overall workforce management.

Solution:

Design a structured 90-day onboarding program with job-specific training and regular check-ins.
Pair new hires with experienced mentors.
Use detailed offboarding checklists covering security, access rights, and documentation.
Transfer critical knowledge before employees leave.
Conduct exit interviews to gather insights for improvement.
Maintain connections with former employees through an alumni network.

6. Not being aware of legal, ethical considerations, and labor laws

One of the most serious HR mistakes is not staying updated on employment laws and ethical standards. Many teams rely on outdated knowledge, missing changes in federal, state, or local regulations, as well as new industry rules.

It’s not just about knowing the laws—it’s about building HR practices that ensure ongoing compliance and adapt as policies shift. Without Strategic human resource planning focused on legal awareness, organizations often learn they’re breaking the rules only after complaints or audits when the damage is already done.

Example: In 2021, Activision Blizzard paid $18 million to settle claims of sexual harassment and discrimination. The investigation showed that the company failed to address complaints, exposing severe gaps in its compliance efforts.

This situation proved that ignoring legal and ethical standards can harm employees, cost money, and hurt a company’s reputation. Ultimately, Activision Blizzard was forced to revamp its HR practices and implement better oversight measures.

Solution:

Work with employment law experts to stay informed about new regulations.
Keep a calendar of all deadlines, filings, and updates.
Use automated tools to track compliance across different HR practices.
Train managers regularly on employment laws and company policies.
Set up clear ways for employees to report legal or ethical concerns.
Review all HR activities each year to confirm you’re meeting legal standards.

7. Payroll pitfalls

Payroll mistakes aren’t just simple errors—they break employees’ trust. As HR practices become more complex, with various pay rates, deductions, and tax rules, even small miscalculations can harm morale and retention. Accurate payroll is part of strategic human resource planning.

When payroll isn’t handled correctly, it becomes a major HR mistake, damaging the company’s reputation and the employee experience.

Example: In December 2021, a ransomware attack hit a major payroll service provider, Ultimate Kronos Group (UKG), causing businesses like PepsiCo and Whole Foods to scramble. They had to rely on paper checks to pay workers correctly and on time. This crisis showed how important it is for organizations to prepare for unexpected problems and avoid Payroll mistakes that hurt trust and productivity.

Solution:

Use automated payroll tools with compliance features.
Clearly document pay policies and any special calculations.
Have more than one person review payroll before sending it out.
Set up backup methods for paying employees if systems fail.
Train payroll staff regularly on new rules and updates.
Check payroll processes every few months to ensure accuracy.

8. Failure to adapt to technological changes

Clinging to old methods is a serious HR mistake. Outdated systems waste time, cause errors, and frustrate employees. Embracing modern technology—such as integrated HR tools, data analytics, and artificial intelligence in headhunting —helps streamline HR practices, boosts security, and improves decision-making. By staying current with new tools, strategic human resource planning becomes more efficient and effective.

Example: In 2015, the U.S. Office of Personnel Management suffered a massive data breach that affected over 21 million people. The cause? Old, insecure systems that made it too hard to protect sensitive information. This incident showed that relying on outdated technology can be costly and damaging, highlighting the need to upgrade and secure HR systems.

Solution:

Develop a clear technology roadmap that supports company goals.
Use integrated HR management systems to keep data flowing smoothly.
Train employees thoroughly on new tools and updates.
Perform regular security checks and keep the software current.
Back up important data and have a recovery plan.
Track performance with analytics to guide continuous improvement.

9. Neglecting long-term strategic goals

Focusing only on day-to-day tasks is a major HR mistake. Without a clear vision for where the company is headed, strategic human resource planning falls short.

Instead of anticipating future talent needs, strengthening leadership pipelines, and guiding human resource management succession planning, organizations remain stuck in reaction mode. Over time, this approach makes it harder to adapt, leaving gaps in HR practices that hurt growth and competitiveness.

Example: Kodak once led in digital technology but clung to its profitable film business for too long. From a human resource planning perspective, it did not invest in training employees for the digital era. By the time the company tried to change course, rivals had already surged ahead, showing that short-term thinking and a lack of strategic workforce development can devastate a business.

Solution:

Plan workforce needs five years out, linked to overall business goals.
Identify skill gaps and create targeted development programs.
Set clear metrics to track long-term progress.
Hold regular strategy sessions with top leaders.
Use data to forecast future talent demands.
Prepare backup plans for different business scenarios.

10. Focusing solely on hiring without considering how to retain top talent

Many companies pour resources into recruiting new talent but fail to keep their best people. This HR mistake wastes time, money, and energy because constantly replacing staff doesn’t build valuable institutional knowledge or a strong culture.

Even the best human resource planning won’t pay off if top performers keep leaving.

To truly maximize your HR practices, you need a work environment that encourages growth, fairness, and long-term commitment.

Example: In 2017, Uber’s aggressive hiring efforts meant little when its toxic culture caused top employees—especially women and minorities—to leave in large numbers. The company had to rebuild from within, improve workplace policies, and focus on keeping the talent it had worked so hard to attract.

Jordan Birnbaum suggests another example:

“When ADP launched their Innovation Lab in NYC, they knew that staffing for innovation in Manhattan was very different than staffing for growth in the New Jersey suburbs, and they provided their HR team with autonomy to create the best set of HR practices for that context. The result, for 8 consecutive years running, is that ADP has won the prestigious HR Tech Product of the Year with new products built in that very same Innovation Lab. Had HR not adjusted its strategy for that particular initiative, they would never have attracted nor retained the type of talent that has made a 75-year-old institution one of the most innovative players in the space. Now that is strategic HR planning.”

Solution:

Show employees clear paths for growth and advancement.
Review and update pay and benefits to stay competitive.
Offer mentorship, training, and skill-building programs.
Use engagement surveys and act on the feedback.
Recognize both achievements and loyalty.
Provide flexible work options and promote work-life balance.

Ready to upgrade your HR planning?

Don’t let common HR planning mistakes hold your organization back. By being aware of these pitfalls and taking proactive steps to avoid them, you can build a stronger, more resilient workforce that drives your company’s success.

Effective HR planning needs modern tools to succeed. An HRIS like Thrivea helps you make data-driven workforce decisions by providing clear insights into your current staffing levels, skills gaps, and future talent needs. You can better forecast hiring requirements, track employee development progress, and align your workforce planning with business goals—all in one integrated platform.

Ready to upgrade your HR planning? Join the Thrivea BETA waitlist today to see how our HRIS can strengthen your team’s long-term success!

Human resource planning FAQs

What happens in the final stage of the human resource planning?

In the final stage, HR teams track and evaluate how well their planning worked. They check if they met their hiring goals, if new employees are performing well, and if training programs were effective. This helps them adjust their strategies and make better plans for the future.

What is the goal of HR planning?

The main goal of HR planning is to make sure a company has the right number of qualified people in the right jobs at the right time.

Why is human resource planning important?

Human resource planning is important because it helps companies prepare for their future workforce needs. It prevents expensive staffing problems, ensures employees have the right skills, and helps companies save money on hiring and training.

Good HR planning also helps companies adapt quickly when business conditions change and keeps employees engaged with clear career paths.