8 of April, 2025

Don’t know where to start when it comes to creating an effective annual HR plan for your company? We’ll walk you through what it should contain, how to automate processes, and tools for successful implementation.

By the end of the article, you’ll have the tools you need to improve personnel management in your organization. Are you ready to take your HR plans to the next level? Let’s go!

Ultimate guide to the HR calendar

At Sesame HR we have conducted a detailed study of what actions and priorities you should have in your annual HR plan to optimize the department’s results.

With our HR management calendar, which you can download 100% free, you will be able to see month by month, how you should organize yourself, what KPIs, objectives and results you should be achieving to improve the performance of the HR department and the personnel management of your company in general.

What should an annual human resources plan contain?

A good annual HR plan should include several key elements in order to be effective. This will enable you to pinpoint areas for improvement and set realistic goals. But what are these elements?

Goals and strategy

The goals of your annual HR plan should be SMART and consistent with the company’s vision in past years.

For example, a goal could be “to reduce staff turnover by 15% within a 3-month period”.

The strategy will explain how to achieve these goals, for example, by improving selection processes or implementing a training plan.

Budget

It is important to assign a realistic budget for each goal and action. You should anticipate budgets for:

Hiring.
Training.
Salary reviews.
Management tools.

A HR software like Sesame HR will help you unify platforms and manage the budget efficiently.

Policies and procedures

Review the current HR policies and update them if necessary. For example, you could improve your telework or equal opportunity policies.

Procedures should document how to carry out HR tasks, such as conducting a performance evaluation or managing a sick leave.

Action calendar

Include a timeline detailing responsibilities and deadlines to carry out each necessary task and action to achieve the goals. This ensures that the plan is not left on paper and is executed effectively.

Using HR management software like Sesame HR will allow you to automate and simplify the entire process of implementing and monitoring an annual Human Resources plan.

Steps to create an annual HR plan

Once you know what an annual HR plan is and what it should contain, it’s time to get to work. Follow these steps to develop an effective annual plan:

1. Analyze the current situation

Make a diagnosis of where your HR department is currently. Review:

Efficiency of current processes.
The budget allocated so far and its distribution.
Status of the current workforce. Are there overstaffed teams or teams with excessive workloads?
Usefulness of existing training programs.

Once the diagnosis is complete, you can proceed with defining objectives and seeing the deviation that exists to reach them.

2. Define strategic objectives

The strategic HR objectives must align with the company’s overall objectives. Think about what you want to achieve in the next 12 months in areas such as:

Recruitment and selection of staff.
Training and development.
Performance evaluation.
Compensation and benefits.
Work environment.

Of course, to set an effective roadmap, you will need to meet with the other departments.

3. Design action plans

Once you have set your objectives with the other departments, you need to define concrete steps to achieve your goals.

In other words, you must calendarize the actions to implement your strategy into an action plan.

In your plan, you should specify:

Activities to be carried out.
Responsible parties.
Deadlines to be met.
Necessary resources (economic, human, etc.).

4. Assign budget and implementation

Determine the costs of each activity to be carried out from the action plan and assign funds from your total budget.

Make sure not to exceed the total budget of your department.

Implement your action plans and monitor them to ensure you are on the right track. Make adjustments and reallocate resources when necessary.

5. Plan evaluation

At the end of the year, assess the results obtained and make changes in your plans for the next period. Learn from what worked and what didn’t, for ongoing improvement.

To do this, you’ll need to present your key data in an annual HR report.
By following these steps, your company will be able to build a comprehensive annual HR plan—one that aligns with your business goals and drives company growth.

Don’t forget that a tool like Sesame HR can help you efficiently manage and monitor your annual plan data through the power of People Analytics.

Why is it important to create an annual HR plan?

Creating an annual Human Resources (HR) plan is essential to align your talent management strategies with your company’s overall objectives. This strategic document allows you to anticipate team needs, optimize available resources, and ensure a positive and productive work environment.

Here are the key reasons why building an annual HR plan is a must:

Alignment with business goals

An annual HR plan ensures that all talent management actions are aligned with the organization’s goals. It also helps identify the areas that need more attention—such as training, hiring, or improving workplace culture.

Anticipation and resolution of team needs

It helps forecast needs related to recruitment, promotions, or restructuring, preventing overload or staffing gaps. It also prepares your team to adapt to labor market changes, legal regulations, or industry-specific demands.

Resource optimization

An annual plan allows for better allocation of your HR budget across training, benefits, tools, and processes. With a clear roadmap, time spent on day-to-day HR tasks becomes more efficient.

Talent development and retention

A well-structured plan helps identify skill gaps and design specific training programs. It also supports the creation of career development plans, which boosts employee satisfaction and retention.

Improvement of work environment

You’ll be able to plan activities and policies that enhance employee well-being, like recognition programs, flexible schedules, or social benefits. It also helps track key indicators like satisfaction, engagement, or turnover to act proactively.

Regulatory compliance

An annual plan includes actions that ensure compliance with labor laws and simplifies organizing documentation and processes needed for audits or inspections.

Better internal communication

It promotes communication between HR and employees by setting shared goals and clear expectations. Structuring annual actions builds trust in your talent management strategy.

Tracking and evaluation

You’ll be able to set KPIs (Key Performance Indicators) to measure the success of your HR initiatives throughout the year. This helps identify deviations or improvement areas and adjust your plan accordingly.

Boosting productivity

When you prioritize areas like training, wellness, and recognition, employees become more engaged and focused. A well-defined plan reduces uncertainty and improves coordination across teams.

Reinforcing organizational culture

An annual plan supports initiatives that promote and strengthen your company’s culture. It also helps build a strong sense of belonging and alignment with company values and goals.

How to automate your annual HR plan with software

Once you know what to include in your annual HR plan, the next step is figuring out how to manage it efficiently.

1. Choose your HR software

Start by selecting an HR software solution that fits your company’s needs.

Platforms like Sesame HR let you digitize and centralize all your HR information into a single employee database.

2. Create reusable templates

Once the platform is set up, create templates you can reuse year after year.

For example, design workplace satisfaction survey models or HR report templates using AI. That way, each year you’ll only need to update a few fields—saving you valuable time.

3. Automate repetitive tasks

Another big advantage of HR software is the ability to automate repetitive tasks like time tracking or absence management.

This frees you up to focus on more strategic, high-value tasks. Plus, with Sesame HR, you can assign every task to the right person with ease.

4. Analyze data and manage changes

HR platforms also include powerful data analysis tools that help you uncover key insights to guide decision-making.

This information is essential when defining your HR goals and action plans for the year.

Common mistakes when building an annual HR plan

Here are some common mistakes to avoid if you want your annual HR plan to be truly effective:

Not involving leadership

A major mistake is failing to involve company leadership in the planning process.

Leaders help define the strategic direction of the company, so their input is essential when shaping your HR priorities.

Using outdated or incomplete data

Your plan must be based on real, updated information, like employee satisfaction surveys or performance reviews.

Without it, it’s difficult to identify improvement areas or propose the right solutions.

Not setting deadlines or responsibilities

Another frequent issue is not defining clear deadlines or assigning ownership for tasks.

Without this structure, many HR initiatives may get delayed or never implemented.

Failing to measure results

Finally, a common oversight is not tracking the outcomes of your HR plan.

It’s vital to set metrics that allow you to evaluate the success of your actions, like improved productivity or reduced turnover.

Only then can you make informed decisions about whether to adjust your strategy moving forward.

Manage your annual HR plan with Sesame HR

Now that you know how to structure your annual HR plan, it’s time to think about how to automate and manage it more efficiently.

That’s where Sesame HR comes in—an HR software platform built to simplify your processes.

Centralize all information. With Sesame HR, you can store all your annual HR plan data in one single system.
Automate repetitive tasks. The platform handles routine tasks like deadline reminders, freeing you up to focus on what really matters.
Track goals and KPIs easily. With intuitive dashboards, Sesame HR lets you monitor your progress in real time.
Generate reports and insights in just a few clicks. Whether it’s employee turnover by department or overall performance, Sesame HR helps you create powerful reports and visualizations in seconds.

In short, an HR platform like Sesame HR is the perfect tool to automate and analyze your annual HR plan efficiently.

Request your 14-day free demo today. You won’t regret it!

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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iriserrador

HR Content Specialist

How to create an annual HR plan for large companies?