Business Plan Personnel Objectives

The personnel objectives for the business must be prepared for every operational area because businesses use human resources in many ways, these would typically include:

1) Management details
Show details of key management personnel, what particular skills and competencies are required to effectively manage the key operational areas of the business. An employee skills matrix is an essential management tool for assessing the skills and competencies of your staff. A very good tool when considering promoting staff and allocating human resources for specific projects.

2) Organisation structure
Describe the proposed organisation structure of the business operation for the planning period. This shows the human resource requirements of the business for the period.

3) Staffing strategies
Describe what methods will be used to select suitable staff and retain them. This includes also strategies for recruitment, induction, training, performance reviews and OH&S compliance.

4) Professional advisers
What areas of expertise do we not possess, how often will these advisors be required. These will need to be outsourced on a selective basis.

Personnel Performance Measurement

Personnel refers to the human resources to be used in the business operation. The management aim for the personnel function of the operation is to maximise labor productivity in any one given period.

Labor productivity is the relationship between business input and labor output, for example output volume and labor hours.

The main personnel objective should therefore be expressed as a measure of labor productivity. The easiest way to measure productivity is in financial terms as follows:

1) labor costs as a percentage of sales, for each period covered.

2) The amount of sales generated by each dollar of labor cost for the period.

Both of these financial ratios of labor productivity describe the relationship of total personnel costs to revenues (or sales) generated by the operation for a defined period. See also steps to controlling your labor




Steps to controlling your labor

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