What is Human Resource Inventory?

Human Resource Inventory

Human resource inventory is focused on informing the organisation about the abilities of individual personnel. Through Human Resources Information System HRIS, it collects and reports on employee information such as names, education, training, former jobs, current positions, performance evaluations, and so on.

The HR inventory profile assists in determining what skills are already accessible in the organisation and can take advantage of possibilities to expand or change the organization’s strategy. It also aids in recognising present and potential challenges to the organization’s capacity to function.

Human Resource Inventory provides various advantages to organisations:

Skill Assessment: It provides a clear overview of employees’ skills, qualifications, and knowledge, allowing organisations to match staff capabilities with specific tasks and projects.

Strategic Planning: HR inventory assists in aligning human resources with organisational goals, supporting successful workforce planning and development initiatives.

Talent Utilisation: It facilitates optimal resource allocation by identifying individuals with specific capabilities, decreasing redundancy, and optimising workforce utilisation.

Succession Planning: HR inventory aids in identifying possible candidates for key roles within the organisation, ensuring a smooth transition during leadership transitions.

Performance Management: It aids in creating performance goals by tracking employees’ present roles, responsibilities, and successes.

Training and Development: The inventory identifies skill shortages, allowing for focused training activities that improve employees’ competencies while also contributing to organisational growth.

Change Adaptation: HR inventory assists organisations in responding to changes in business needs or market demands by aligning personnel capabilities with growing requirements.

Risk Mitigation: By detecting significant talent shortages, HR inventory helps to reduce the risk of disruptions caused by unexpected personnel departures or issues.

Informed Decision-Making: Having accurate employee data allows for well-informed decisions on recruiting, promotions, transfers, and workforce planning.

Legal Compliance: Human resource inventory aids in the maintenance of correct records, assuring compliance with labour laws and regulations.

In conclusion, human resource inventory enables organisations to maximise human capital, adapt to changes, make informed decisions, and achieve strategic goals while limiting risks.

People Also Read: Importance of Business Strategy