WORKFORCE PLANNING- THE CORE HR PROCESS

 

 

It is difficult to determine which HR process that is the most important. But the one process that influences all other HR process the most and at the same time has a direct business effect is workforce planning.

 

The reason for its importance can be explained by the fact that the workforce planning process is directly or indirectly linked to all other HR processes. The workforce plan indicates for example the need of resources for the recruitment strategy, the competences needed for competence development and the estimated turnover for any retention related processes.

 

Workforce planning is sometimes referred to as strategic resource planning and can be defined as a systematic approach to anticipating staffing needs and determining what actions should be taken to meet those needs. The definition varies between organisations and is dependant of the organisations focus and needs. Below you find two examples of how MindShift has worked with clients on workforce planning:

  • Client case 1: Example how an organisation developed a systematic approach where both quantity of resources in terms of current and needed FTE were identified as well as the qualitative aspect with competences and skills. The estimation of future resources was done based on knowledge of the external factors such as the labour market, as well as internal factors such as business plans. The output was an analysis of the future needed resources and a concrete action plan on how to secure those resources.

  • Client case 2: Example how an organisation wanted to take an initial step in workforce planning by initiating the topic and the discussion in the management teams. The purpose was to raise awareness of the importance of planning resources and to start the dialogue among the decision makers in order to evolve into a more systematic approach later.

 

 

HR REALISES THE POWER OF WORKFORCE PLANNING

MindShift has in the last years seen a trend among organisations to work more actively with workforce planning. The way it is carried out and the output is varying, but the following main benefits can be seen:

 

Fulfilling the role of HR Business partner:

  • The workforce planning process and outcomes provides a direct link to achieving the business targets

  • By facilitating and driving the workforce planning process HR is actively involved in the role of HR Business Partner

Being strategic and proactive:

  • The topic is of strategic importance and creates opportunities to be proactive in areas such as staffing and competence development

Avoid resourcing crisis

  • The core purpose of the process is to be prepared and avoid any resource emergencies either in quantity (number of FTE) or quality (competences and skills)

  • Actively planning ahead on a long term perspective implies that the personnel and resourcing costs can be foreseen and managed better

 

CHALLENGES AND DEVELOPMENT TRENDS

The challenges that organisations are facing in the area of workforce planning are numerous. Some challenges relate to the complexity of the topic as such for example how to estimate the future number of resources in an ever changing business environment. Other challenges relate more to the HR function and the inexperience among HR professionals to drive the discussion of translating business plans into resource consequences.

 

MindShift expects that the use of a systematic process to estimate the future needed resources will increase. The changing labour market with a still increasing competition for talent forces a stronger proactiveness if organisations are to succeed in reaching their targets. Business leaders and HR professionals will also develop their ability to link the business strategy to resource needs and be better at utilizing the output of the workforce plans.

 

ABOUT MINDSHIFT

MindShift is a Human Resource & Organisation consulting firm offering strategic and operational advisory services. Our clients are mid-sized or large multinational corporations from a wide range of industries.  MindShift employs seven consultants with international backgrounds in human resource management, organisational development, and business administration.

www.mind-shift.com

MindShift,  Östermalmsgatan 83, 114 50  STOCKHOLM, Sweden
Tel: +46 8 410 238 88, Fax: +46 8 410 238 98
info@mind-shift.com