The Complete Guide to Strategic Workforce Planning

Introduction: The Importance of the Workforce Planning Process

A workforce plan is a strategic document that an organization creates to identify the skills they require to fulfill their goals. It also outlines the type of training they need to build their skillset, as well as the strategies necessary for managing their current workforce.

A business can use two different strategies when it comes to developing a workforce planning model. One strategy is called the "employee-driven approach". This approach focuses on meeting the needs of employees and developing plans that will help them achieve their career goals.

Another strategy is called "the employer-driven approach". The workforce planning strategy focuses on meeting the needs of employers and developing plans that will help them grow. It supports the employer by helping them determine what they need to achieve their goals.

The workforce planning process is a vital part of a business, and having a solid strategy is imperative to maximize the full potential of your workforce.


The 5 Key Components of a Strategic Workforce Planning Framework

The workforce planning process involves analyzing the current workforce to determine future staffing needs. When managing a workforce, strategic planning is vital, and HR management that covers workforce planning helps organizations increase their efficiency and effectiveness on all levels.


The five key components of a strategic workforce planning framework are:


A Clear Understanding of the Company’s Business Strategy

Without a clear understanding of company goals, the right approach cannot be achieved. When you understand what they should be doing and how to get there, it becomes much easier to make decisions and stay focused. Without a clear strategy, the company might be wasting their time on programs and policies that don’t serve them.


A Workforce Plan That Aligns With the Company’s Business Objectives

To maintain a competitive workforce, it's important to have a plan that not only accommodates the company's needs but also the employee's. One of the most important components of such a plan is being able to communicate and understand the needs and goals of everyone. This will enable employees to grow and establish themselves as key contributors to their respective positions.

For instance, food giant Tesco has a seven-part framework that covers a comprehensive description of the skills and behaviors required for every job at all levels. This gives the company an easy starting point for analysis and recruitment of the right skills and people.


An HR Plan that Supports the Company’s Business Objectives

A well-thought-out HR plan is the backbone of any company's business objectives. It shapes the company's culture, sets hiring standards, and helps retain talent. A workforce plan can't be successful without effective communication and transparency between management and staff.


Consistent Communication with All Stakeholders

For a company to succeed, there needs to be a constant flow of communication between all stakeholders. This includes employees, managers, clients, and suppliers. For instance, establishing lines of communications to share information like meetings, newsletters, and Q&A sessions will help keep employees invested in the growth of the company. Hilton, the leading hotel chain acquired the ‘OpenCompany’ status on Glassdoor to demonstrate its commitment to transparency to potential candidates.


Regular Monitoring and Evaluation of Performance

Monitoring and evaluation of performance is a good way to improve understanding of the processes and outcomes in the workplace. It can be used to identify strengths and weaknesses and to ensure that people are rewarded fairly for their efforts. HR analytics and workforce analytics can be used to keep track of target KPIs and measure the effectiveness of HR initiatives against them.

“No two employers have the same talent goals, we philosophically believe the right eco-system for one organization may not be right for the next.”

- Scot Marcotte, Chief Technology Officer at Buck 


Critical Factors for Successful Workforce Planning

Successful workforce planning is a matter of getting a few aspects right. Here are the three factors you need to focus on to make your workforce planning efficient.


Business Strategy

It is important to have a strategy that will help you grow your company. You need to have a plan that includes guidelines on how to hire the right talent, what type of talent you are looking for, and how much you are willing to spend on hiring this talent. For instance, Salesforce has an exceptional employee experience. The tech giant onboards over 4,000 hires every year and delivers a great experience by providing new hires with bootcamps and online learning resources to acquaint them quickly.


HR Metrics

You should have metrics in place that will help you measure  success as well as understand areas where your company needs improvement. This way, you can find out if your hiring process or retention strategies are working or are ineffective. Some metrics to map include cost-per-hire, recruitment spending, time to fill vacancies, employee turnover, and employee performance.


Employee Retention Strategies

Employee retention is an essential factor for successful workforce planning because it ensures that employees stay with your company for a long time and contribute their skills and knowledge.

Conclusion- Why Does Successful Workforce Planning Matter?

It is important to develop the right mix of people to suit the needs of the company. A company's workforce planning strategy should be aligned with its overall business strategy. It should be able to accurately identify the skill gaps in your workforce. Workforce planning also helps you identify potential risks and opportunities for your organization. In addition, it helps you build a future-ready workforce with the right skills to meet your business needs. Strategic workforce planning can help you build a more agile team that can adapt quickly to change and take on new opportunities as they come.

A successful workforce planning strategy will help organizations to take proactive steps towards growth, while at the same time ensuring that they are not compromising on their values or competitive advantages.

Frequently Asked Questions


What are some ways to implement a workforce plan?

Some companies use an approach called “workforce optimization” which involves using technology like data analytics to understand what skills they need in their workforce. Using this information they create a plan that will meet those needs in the future.


What is a strategic workforce planning approach?

Dividing the workforce into three categories: core, contingent, and talent is an effective strategy to consider. The core group consists of employees who have been with the company for a long time and are deemed irreplaceable. Contingent workers work on a contract basis and can be replaced, if necessary. Talent is made up of those employees who are not as skilled as the core group but still have valuable skills.

How do I know if my company needs a workforce plan?

A company should consider developing a workforce plan when:
  • It is experiencing rapid growth in its business and workforce
  • It is in an industry with low employee turnover
  • It wants to avoid hiring in a way that may be discriminatory, inefficient, or illegal

Spotlight

HG Arias & Associates

HG Arias & Associates has the expertise to bring people and companies together to create staffing solutions that benefit both. Simply put, we help clients and applicants find the right fit. HG Arias & Associates works with virtually every kind of business, large and small. Likewise, we have placed thousands of people from all walks of life.

OTHER ARTICLES
Workforce Management

Listen and act: how to get employee experience management right

Article | October 18, 2021

As the science behind employee engagement evolves, it’s become clear just how much businesses can gain from a happy and involved workforce. From improved performance, to reduced attrition, increased revenue and even a better customer experience, employee engagement is at the heart of business growth. Given these benefits, it’s no surprise that the role of HR departments is moving beyond just managing people and towards managing experiences.

Read More
Workforce Management

5 Things HR Can Do To Improve Employee Output

Article | May 1, 2021

Employees are companies most valuable asset – Without the talent, knowledge and expertise those employed bring to an organisation, it’s safe to say that the business world would be a very different landscape. Human Resources is often held responsible for owning the employee value strategy, where we’re now embracing tremendous improvements in how the value that employees bring, can be achieved. Here we’ll explore how data analysis, learning & development, employee engagement, 360 feedback and flexibility all offer a significant opportunity to improve employee output within every organisation in 2020.

Read More
Workforce Management, HR Strategy

6 Reasons To Invest In Employee Onboarding In Your Organization

Article | December 7, 2022

You never get a second chance to make a first impression. This holds particularly true when it comes to employee onboarding. It's a new hire's introduction to the organization and the experience has a significant impact on employee retention. Unfortunately, that's why it's rare to see many employees with years of tenure. Research by Future Workplace found that 91% of Millennials expect to stay in a job for less than 3 years. Companies lose 25% of all new employees within the first year, according to SHRM, but almost 70% of employees are more likely to stay with a company for 3 years if they experienced great onboarding.

Read More

Great training is key to creating a positive employee experience

Article | February 10, 2020

You’d love to have employees working for you who are the type that always want to learn new things and grow, right? Right. Engaged employees spend more of their time working to improve their performance through training and development. They are the type of workers every company wants, and they expect their employers to create a positive experience for them by matching their ambition with effective training. For firms and HR professionals trying to create a positive employee experience, it’s essential that your team of in-house trainers is ready to lead the way.

Read More

Spotlight

HG Arias & Associates

HG Arias & Associates has the expertise to bring people and companies together to create staffing solutions that benefit both. Simply put, we help clients and applicants find the right fit. HG Arias & Associates works with virtually every kind of business, large and small. Likewise, we have placed thousands of people from all walks of life.

Related News

Workforce Management

Workday Sees Insurance Industry Momentum as Organizations Seek to Create Agility and Build Resilience Amid Unprecedented Change

PR Newswire | November 01, 2023

InsureTech Connect Workday, Inc. a leader in enterprise cloud applications for finance and human resources, today announced continued momentum within the insurance industry, as organizations including American Financial Group, AssuredPartners, Farmers Mutual of Nebraska, Penn Mutual, Reliance Matrix, Resolution Life, and Telesure Group Services are using or have selected Workday to drive agility and keep pace with an evolving industry. The company also announced that the Workday Industry Accelerator for Insurance — an industry-first approach to how Workday and its partner ecosystem drive more value for customers — now includes the deep industry experience of Deloitte (InsureAcceleration Solution), KPMG, and PwC. Accelerating Insurance Industry Transformation According to an IDC infographic*, 70% of insurance organizations either expressed pessimism about insurance market prospects or feel unprepared for potential disruption. Amid shifting regulations, evolving workforce demands, and volatility of external events impacting claims payouts, it is crucial that organizations leverage technology including AI and ML to adapt and better anticipate the complex realities of an ever-evolving, unpredictable industry. The Industry Accelerator for Insurance will help organizations accelerate their cloud transformations, scale with open ecosystems, and collaborate to drive innovation. said Shera Chase, vice president of total rewards and HR operations, Reliance Matrix. For the insurance industry, new technology is critical to eliminate data silos created by multiple legacy systems that are difficult to use and manage. With Workday, we were able to move our operations and data to the cloud, which provides us with a real time view of our business. With this access to data and more streamlined processes, rather than simply reacting to risks, we're able to make more strategic decisions quickly that can save countless hours, boost productivity, and help prevent loss. [Source:PR Newswire] Delivering Insights Across the Insurance Enterprise To keep pace with the evolving industry landscape, Workday is helping organizations move beyond legacy ERP systems to the cloud. With Workday, insurance customers can break down data silos to unify data from across the enterprise for deeper business insights. Users can combine data from operational solutions, including claims, policy and actuarial systems, with internal financial and workforce data for a unified system of insight to drive decision making. With a composable architecture, Workday enables customers to interoperate with existing technology ecosystems and extend solutions with low or no code technology, all while maintaining the same level of security. Organizations also gain real-time visibility across workforce, skills, and labor spend. Workday Skills Cloud with ML at the core helps organizations understand the skills and capabilities of their entire workforce, enabling them to quickly align people resources to critical needs. In addition, AI and ML embedded into the Workday platform drives efficiency, helping insurance organizations deliver more engaging employee experiences to better attract, hire, and retain talent. "The insurance industry is facing major challenges due to changing customer and market expectations, new sources of competition, external factors like climate change and cyber-security, and the evolving regulatory landscape," said Jay Rabinowitz, vice president, head of financial services, Workday. "With Workday, organizations can leverage technology to create agility and be better prepared for an uncertain future where things can change quickly."

Read More

HR Strategy

Kelly Enters Agreement to Sell European Staffing Business to Gi Group Holdings S.P.A.

PR Newswire | November 03, 2023

Kelly a leading global specialty talent solutions provider, today announced that it has entered into a definitive agreement to sell its European staffing business to Gi Group Holdings S.P.A. ("Gi"), one of the largest staffing companies in Europe, for cash consideration of up to €130 million. The transaction is expected to close in the first quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions. Under the terms of the agreement, Kelly will transfer its European staffing business within its International operating segment to Gi. Kelly provides staffing services to customers in 14 countries across Europe. The company will retain its managed service provider, recruitment process outsourcing, and functional service provider (FSP) business with customers in the Europe, Middle East, and Africa (EMEA) region. Following the close of the transaction, Kelly will maintain its global footprint and continue to provide MSP, RPO, and FSP solutions to customers in the EMEA region through KellyOCG, Kelly's outsourcing and consulting group. As a leading global vendor-neutral provider of talent supply chain strategies and workforce solutions, KellyOCG leverages a network of 3,000 suppliers spanning 140 countries – including Gi – to connect customers across North America, Asia Pacific, and EMEA with top talent to grow their businesses. In Everest Group's 2023 PEAK Matrix®, KellyOCG was recognized as a leader and major contender for its MSP and RPO solutions, respectively, with the latter earning KellyOCG star performer status. Everest Group also recognized KellyOCG as a leader and star performer in statement-of-work (SOW) management. said Peter Quigley, president and chief executive officer. The sale of Kelly's European staffing business demonstrates our commitment to taking bold, transformative action to optimize our portfolio and maximize value creation. This transaction unlocks significant capital to pursue organic and inorganic investments in our chosen specialties. Furthermore, it sharpens our focus on our higher margin, higher growth global MSP solutions, global RPO solutions, and specialty outcome-based and staffing services in North America. Together, we expect these outcomes will accelerate Kelly's progress toward achieving a normalized, adjusted EBITDA margin in the range of 3.3% to 3.5% as we shared in August and drive profitable growth over the long term. [Source:PR Newswire] The transaction is the latest in a series of strategic actions Kelly has executed to unlock capital in pursuit of its specialty strategy and further optimize its operating model, which includes monetizing non-core real estate holdings and businesses; unwinding Kelly's cross-shareholding arrangement with Persol and reducing the company's ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; selling its operations in Brazil and Russia; and most recently, implementing strategic restructuring actions which enhance organizational efficiency and effectiveness. Quigley and Olivier Thirot, executive vice president and chief financial officer, will provide additional details about this transaction as it relates to the company's specialty strategy during its upcoming third-quarter earnings conference call on November 9, 2023.

Read More

Workforce Management

UKG Labs Welcomes a Startups’ Cohort for People-Centric Workplaces

UKG | November 07, 2023

UKG Labs welcomes a second cohort of startups from four countries, all focused on enhancing business cultures. Startups Bites, Denim, Hop In Technologies, and Mo were selected for their innovative workforce technologies and commitment to workplace wellbeing. Despite offering a collaborative platform, UKG Labs poses potential risks, including over-reliance on UKG, intellectual property disputes, and a possible compromise of the startups' original visions. UKG, a leading HR, payroll, and workforce management solutions provider, has introduced its second cohort of early-stage companies to its global startup ecosystem, UKG Labs. The selected startups, from four different countries, are committed to creating high-performing, people-centric cultures in businesses. The new entrants include Bites from Israel, Denim from the U.S., Hop In Technologies from Canada, and Mo from the U.K. These companies were chosen for their innovative technologies that add value to the frontline workforce and their commitment to helping people thrive at work. UKG Labs provides more than just capital to these startups. It offers a platform for co-learning, co-creation, and co-experimentation, allowing startups to gain insights into specific market problems where UKG has expertise. The startups also work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies. Hugo Sarrazin, Chief Product and Technology Officer at UKG, stated that the goal of UKG Labs is to help businesses become great workplaces by building an ecosystem of technology companies that share its vision. The startup founders have completed a three-month onboarding engagement and will showcase their innovations at the UKG Aspire 2023 conference. While the UKG Labs initiative offers numerous benefits, it does come with potential drawbacks. The startups involved might become overly reliant on UKG for resources and expertise, which could potentially stifle its independence and creativity. There's also a risk of intellectual property disputes, and the startups' original visions might be compromised to align with UKG's goals. On the brighter side, UKG Labs provides a platform for startups to co-learn, co-create, and co-experiment, fostering innovation and helping businesses become better workplaces. It also allows startups to gain insights into specific market problems where UKG has expertise and work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies. This collaboration ultimately serves to enhance the workplace experience for all.

Read More

Workforce Management

Workday Sees Insurance Industry Momentum as Organizations Seek to Create Agility and Build Resilience Amid Unprecedented Change

PR Newswire | November 01, 2023

InsureTech Connect Workday, Inc. a leader in enterprise cloud applications for finance and human resources, today announced continued momentum within the insurance industry, as organizations including American Financial Group, AssuredPartners, Farmers Mutual of Nebraska, Penn Mutual, Reliance Matrix, Resolution Life, and Telesure Group Services are using or have selected Workday to drive agility and keep pace with an evolving industry. The company also announced that the Workday Industry Accelerator for Insurance — an industry-first approach to how Workday and its partner ecosystem drive more value for customers — now includes the deep industry experience of Deloitte (InsureAcceleration Solution), KPMG, and PwC. Accelerating Insurance Industry Transformation According to an IDC infographic*, 70% of insurance organizations either expressed pessimism about insurance market prospects or feel unprepared for potential disruption. Amid shifting regulations, evolving workforce demands, and volatility of external events impacting claims payouts, it is crucial that organizations leverage technology including AI and ML to adapt and better anticipate the complex realities of an ever-evolving, unpredictable industry. The Industry Accelerator for Insurance will help organizations accelerate their cloud transformations, scale with open ecosystems, and collaborate to drive innovation. said Shera Chase, vice president of total rewards and HR operations, Reliance Matrix. For the insurance industry, new technology is critical to eliminate data silos created by multiple legacy systems that are difficult to use and manage. With Workday, we were able to move our operations and data to the cloud, which provides us with a real time view of our business. With this access to data and more streamlined processes, rather than simply reacting to risks, we're able to make more strategic decisions quickly that can save countless hours, boost productivity, and help prevent loss. [Source:PR Newswire] Delivering Insights Across the Insurance Enterprise To keep pace with the evolving industry landscape, Workday is helping organizations move beyond legacy ERP systems to the cloud. With Workday, insurance customers can break down data silos to unify data from across the enterprise for deeper business insights. Users can combine data from operational solutions, including claims, policy and actuarial systems, with internal financial and workforce data for a unified system of insight to drive decision making. With a composable architecture, Workday enables customers to interoperate with existing technology ecosystems and extend solutions with low or no code technology, all while maintaining the same level of security. Organizations also gain real-time visibility across workforce, skills, and labor spend. Workday Skills Cloud with ML at the core helps organizations understand the skills and capabilities of their entire workforce, enabling them to quickly align people resources to critical needs. In addition, AI and ML embedded into the Workday platform drives efficiency, helping insurance organizations deliver more engaging employee experiences to better attract, hire, and retain talent. "The insurance industry is facing major challenges due to changing customer and market expectations, new sources of competition, external factors like climate change and cyber-security, and the evolving regulatory landscape," said Jay Rabinowitz, vice president, head of financial services, Workday. "With Workday, organizations can leverage technology to create agility and be better prepared for an uncertain future where things can change quickly."

Read More

HR Strategy

Kelly Enters Agreement to Sell European Staffing Business to Gi Group Holdings S.P.A.

PR Newswire | November 03, 2023

Kelly a leading global specialty talent solutions provider, today announced that it has entered into a definitive agreement to sell its European staffing business to Gi Group Holdings S.P.A. ("Gi"), one of the largest staffing companies in Europe, for cash consideration of up to €130 million. The transaction is expected to close in the first quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions. Under the terms of the agreement, Kelly will transfer its European staffing business within its International operating segment to Gi. Kelly provides staffing services to customers in 14 countries across Europe. The company will retain its managed service provider, recruitment process outsourcing, and functional service provider (FSP) business with customers in the Europe, Middle East, and Africa (EMEA) region. Following the close of the transaction, Kelly will maintain its global footprint and continue to provide MSP, RPO, and FSP solutions to customers in the EMEA region through KellyOCG, Kelly's outsourcing and consulting group. As a leading global vendor-neutral provider of talent supply chain strategies and workforce solutions, KellyOCG leverages a network of 3,000 suppliers spanning 140 countries – including Gi – to connect customers across North America, Asia Pacific, and EMEA with top talent to grow their businesses. In Everest Group's 2023 PEAK Matrix®, KellyOCG was recognized as a leader and major contender for its MSP and RPO solutions, respectively, with the latter earning KellyOCG star performer status. Everest Group also recognized KellyOCG as a leader and star performer in statement-of-work (SOW) management. said Peter Quigley, president and chief executive officer. The sale of Kelly's European staffing business demonstrates our commitment to taking bold, transformative action to optimize our portfolio and maximize value creation. This transaction unlocks significant capital to pursue organic and inorganic investments in our chosen specialties. Furthermore, it sharpens our focus on our higher margin, higher growth global MSP solutions, global RPO solutions, and specialty outcome-based and staffing services in North America. Together, we expect these outcomes will accelerate Kelly's progress toward achieving a normalized, adjusted EBITDA margin in the range of 3.3% to 3.5% as we shared in August and drive profitable growth over the long term. [Source:PR Newswire] The transaction is the latest in a series of strategic actions Kelly has executed to unlock capital in pursuit of its specialty strategy and further optimize its operating model, which includes monetizing non-core real estate holdings and businesses; unwinding Kelly's cross-shareholding arrangement with Persol and reducing the company's ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; selling its operations in Brazil and Russia; and most recently, implementing strategic restructuring actions which enhance organizational efficiency and effectiveness. Quigley and Olivier Thirot, executive vice president and chief financial officer, will provide additional details about this transaction as it relates to the company's specialty strategy during its upcoming third-quarter earnings conference call on November 9, 2023.

Read More

Workforce Management

UKG Labs Welcomes a Startups’ Cohort for People-Centric Workplaces

UKG | November 07, 2023

UKG Labs welcomes a second cohort of startups from four countries, all focused on enhancing business cultures. Startups Bites, Denim, Hop In Technologies, and Mo were selected for their innovative workforce technologies and commitment to workplace wellbeing. Despite offering a collaborative platform, UKG Labs poses potential risks, including over-reliance on UKG, intellectual property disputes, and a possible compromise of the startups' original visions. UKG, a leading HR, payroll, and workforce management solutions provider, has introduced its second cohort of early-stage companies to its global startup ecosystem, UKG Labs. The selected startups, from four different countries, are committed to creating high-performing, people-centric cultures in businesses. The new entrants include Bites from Israel, Denim from the U.S., Hop In Technologies from Canada, and Mo from the U.K. These companies were chosen for their innovative technologies that add value to the frontline workforce and their commitment to helping people thrive at work. UKG Labs provides more than just capital to these startups. It offers a platform for co-learning, co-creation, and co-experimentation, allowing startups to gain insights into specific market problems where UKG has expertise. The startups also work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies. Hugo Sarrazin, Chief Product and Technology Officer at UKG, stated that the goal of UKG Labs is to help businesses become great workplaces by building an ecosystem of technology companies that share its vision. The startup founders have completed a three-month onboarding engagement and will showcase their innovations at the UKG Aspire 2023 conference. While the UKG Labs initiative offers numerous benefits, it does come with potential drawbacks. The startups involved might become overly reliant on UKG for resources and expertise, which could potentially stifle its independence and creativity. There's also a risk of intellectual property disputes, and the startups' original visions might be compromised to align with UKG's goals. On the brighter side, UKG Labs provides a platform for startups to co-learn, co-create, and co-experiment, fostering innovation and helping businesses become better workplaces. It also allows startups to gain insights into specific market problems where UKG has expertise and work directly with UKG customers to explore new solutions and shape emerging HR and HCM technologies. This collaboration ultimately serves to enhance the workplace experience for all.

Read More

Events