The human capital residing within an organisation is often argued to be the most important factor in enabling organisations to meet their goals. It stands to reason, then, that workforce planning is one of the key components of effective human capital management and a topic widely discussed as having an ever-growing importance in the future of work. Nevertheless, we see many HR functions failing to successfully embed effective workforce planning processes.

As a result of research conducted by Insight222, we have developed a new framework to assist organisations by providing structured guidance for implementing workforce planning. It is called the Insight222 Nine Dimensions for Workforce Planning. You can explore the nine dimensions in more detail here.

In this article, we’re going to explore some of the basics of workforce planning:

1.     What is workforce planning?

2.    Three barriers to effective workforce planning

3.    The opportunity of workforce planning

4.    The change we need to drive

What is workforce planning?

One of the key factors holding organisations back from successfully implementing workforce planning is the lack of definition around what workforce planning is. Without clear understanding around the ‘what’, the ‘why’ and the ‘what’s in it for me’ of workforce planning processes, lack of buy-in from both within HR and the business is inevitable.

In Jonathan Ferrar’s and David Green’s recently released book, Excellence in People Analytics, they define workforce planning as a process and technique for analysing both the current and desired future state of the workforce.

A process and technique for analysing both the current and desired future state of the workforce

Workforce planning can be strategic, operational, and tactical in nature.

At the core of these three approaches is a single tenet: successful workforce planning is not only about the long-term, but it must also be able to link the strategic plan with more operational and tactical workforce decisions that together will have an impact on business success.  However, organisations tend to focus on Strategic and Tactical workforce planning, but often omit the Operational approach, which is arguably where a lot of value can be added.

When defining the workforce planning process, it’s important to also consider the implementation of solutions aligned to an organisation’s strategic aims and objectives to ensure you have the right people, with the right skills, at the right time, in the right roles and locations. This is covered in the ‘implementation’ dimension of Insight222’s model. Click here to download a sample extract of Insight222's New Playbook for Workforce Planning, which explains the model in more detail.

Interested in learning more about Workforce Planning? Take a look at our online Workforce Planning and People Analytics certifications on myHRfuture.

Three barriers to effective workforce planning

Many organisations are failing to foster an environment where workforce planning is embedded in its core. Without effective workforce analytics or planning, organisations will find it increasingly difficult to retain talent and positively impact their workforce. They will also struggle to deliver their business strategy.

There have been extensive amounts of research looking into why organisations fail at sustaining and embedding workforce planning. Research from Gartner highlights three key challenges:

1.     HR struggles to incorporate business needs and strategy, due to limitations regarding stakeholder relationships. (This is why stakeholder management is one of three critical skills for effective workforce planning.)

2.    HR lacks the ability to access, analyse and incorporate external talent market data to assess market changes.

3.    HR teams lack the capability to use internal and external data and input to build, execute and evaluate workforce plans.

The opportunity of workforce planning

Leaders are more enthusiastic than ever to see the connection between their people, workforce information and their business strategy, outcome, and cost.

Workforce planning presents an important opportunity for HR to deliver real insight to the business, by providing a holistic view of their workforce and an understanding of how their talent strategy aligns to their business strategy. It’s also an opportunity for HR to not only facilitate the strategic end of the process but to set the agenda for workforce change and become a trusted advisor to the business.

When done well, workforce planning can lead to greater innovation, talent generation and process improvement within an organisation, allowing informed, data driven talent decisions to be made, that are aligned to strategic priorities and underpinned by advanced and predictive analytics.

Investing in workforce planning allows business leaders to make more targeted talent related investments and supports effective OpEx management, both of which are critical enablers in ensuring that organisations stay ahead in an ever-changing environment. As companies try to create more agile organisations with a mix of full-time, part-time, permanent, contractor and freelance talent, the ability to plan effectively, forecast skill gaps, and understand the supply and demand of talent has never been more important.

The change that we need to drive

To be successful, HR must adopt the role of the ‘facilitator’ of workforce planning within an organisation. Ultimately, their primary role is bringing the right people to the workforce planning table and facilitating the right conversations to breakdown the planning silos that are all too often prevalent in organisations. We need to foster more collaboration and knowledge-sharing in which a continuous dialog between HR and the business is maintained.

When done well, workforce planning will quicken the business strategy by delivering recommendations grounded on facts.

Learn the HR skills of the future

To succeed, HR professionals need to become more data driven, business focused and experience led – to acquire the skills necessary to process, produce and leverage digital information.

The myHRfuture Academy supports thousands of HR professionals in building the skills that they need to succeed in the future. Our expertly curated, bitesized learning content allows you to build your knowledge and get certified in skills such as People Analytics, Digital HR and HR Technology, Design Thinking and Workforce Planning.

ABOUT THE AUTHOR

Manpreet Randhawa is the Head of Digital Content for myHRfuture.com. In her previous role as the Change Management Lead for People Planning, Design & Analytics at Cisco Systems, she was responsible for defining and executing on the change management strategy to successfully implement and sustain the digital and cultural transformation across the enterprise. Manpreet is very passionate about change management and technology and how to use both to transform the employee experience and prepare companies for the Future of Work.