Importance of Staffing Management


Staffing management is how an organization plans to meet personnel needs now and in the future. This requires collecting and analyzing data on all positions in an organization. This process falls to planners, top-level executives, department heads, line managers and HR professionals, who all assist in forecasting and planning for personnel requirements.

Human Capital Management

Large organizations are managed according to a strategic plan. Human capital management is a core element of strategic planning, ensuring employees as assets are directed to the right operational programs. Staffing management means that planning for how the workforce will grow or shrink according to changing priorities will help the organization make the most of its human resources. Without planning, an organization can face a difficult position, such as staffing shortages that endanger productivity.

Training and Development

As part of human capital management, staffing activities link to other personnel-related activities. Senior managers link the size and characteristics of the workforce to areas like training and development. Knowing what kinds of positions will be needed in the future, a product of staffing management, helps these managers decide what to invest in training. Continuing to build employee skills through improved training and development helps an organization remain competitive.


One of the most important parts of how an organization plans to implement its strategic planning goals is through the budgeting process. A core component of the budget is the cost of personnel. An organization must decide what financial resources to allocate to each program or activity. Without enough staff, each activity cannot accomplish its function.


Senior managers can also plan for growth and expansion, such as adding production facilities or launching a new product line. These plans must include studying how many people the organization must add and how the priority for this staffing requirement fits into the overall strategic plan. After looking at the budget, for example, senior managers might decide to move personnel from another program area that is being reduced or phased out, instead of budgeting for new positions.

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