Strategy · HR glossary

Capacity Planning

Capacity planning determines whether available resources can handle expected work within a given time. Workforce capacity depends on productive hours, skills, equipment and constraints on the process.

By SmallHRTools · How we write definitions

Example

A team expects 600 hours of work next month but has 500 available delivery hours after leave and other commitments, leaving a 100-hour gap.

What to keep in mind

Do not treat every paid hour as available delivery time. Include meetings, learning and predictable absence, and examine process bottlenecks before assuming the gap requires additional employees.

Further reading

← Browse all HR terms