Creating a Workforce Strategy: Building an Organization Prepared for the Future

As the job market shifts due to the COVID-19 pandemic, many workers face the need to transition to new positions that may require additional training.

Statistics by PWC show that 74 percent of employees are prepared to learn new skills in an effort to stay employable.

To stay ahead of these changes and create a future-ready organization, it is essential to undertake workforce planning. Although it may require effort and time, proper workforce planning is crucial for ensuring the success of your company in the long run.

What is Workforce Planning?

Workforce planning is a comprehensive process that involves a deep analysis of an organization’s workforce, identifying its strengths and weaknesses, forecasting future requirements, and creating strategies to bridge gaps and align talent management with business objectives.

It helps organizations make informed decisions about hiring, training, and retaining employees, as well as optimizing workforce productivity, reducing employee turnover, and minimizing labor costs. Workforce planning ensures that an organization has the right people, with the right skills, in the right positions, at the right time.

What Makes Workforce Planning So Important?

In today’s rapidly changing work environment, having a solid workforce plan in place is crucial for businesses. HR teams must ensure that their organizations are equipped with the right skills and talent, as well as plan for future succession.

A workforce plan acts as a roadmap to guide HR decisions, ensuring that they are well-prepared for potential talent shortages or changes in employee needs. This framework allows employers to stay up-to-date on the skills and qualities they require in future employees, making them better equipped to hire and train new staff. Ultimately, workforce planning is key to building a future-ready organization.

Who Holds the Responsibility for Workforce Planning?

Workforce planning is a shared responsibility among different stakeholders in an organization. While HR is the primary team responsible for workforce planning, it should be a collaborative effort with other departments and senior leadership.

Managers and supervisors play an essential role in providing insights on the organization’s current talent and identifying areas for development. Additionally, senior leaders can ensure that the workforce plan aligns with the company’s strategic objectives and long-term vision. Ultimately, workforce planning is a collective effort that requires input and involvement from all levels of an organization.

What are the Stages of Workforce Planning?

Effective workforce planning involves several stages that HR teams should carefully manage to ensure the success of their organization’s future growth and development. These stages include:

1. Alignment with organizational strategy

• Workforce planning should align with the overall strategy and objectives of the organization.
• Identifying where the organization is heading in the next few years will be critical in identifying the workforce needed.

2. Analysis of the labour market

• Conduct a comprehensive analysis of the labor market to determine the availability of talent, as well as forecasting future trends.
• Understand what the competitive landscape looks like when hiring employees.

3. Identification of necessary talent

• Identify the talent needed to achieve the organization’s strategic goals and objectives.
• Determine the specialized skills, technical knowledge, and competencies required for the future of the organization.

4. Identification of talent gap

• Compare the existing talent pool to what will be required to meet the future needs of the organization.
• Determine the gap between the supply (existing talent) and the demand (required skills) for the organization.

5. Developing a plan to close the gap

• Develop a plan to close the talent gap, either by hiring new employees or upskilling current staff.
• Create an employee development plan that helps current employees gain the necessary skills to meet the organization’s future requirements.

6. Monitoring and updating the plan

• Implement a strategy to monitor the progress of the workforce plan.
• Define a process for updating the plan to ensure that it remains relevant and effective in meeting the organization’s strategic objectives.

What are the Benefits of Strategic Workforce Planning?

Strategic workforce planning is a crucial process that can provide numerous benefits to an organization. These benefits can be categorized into two types: tangible and intangible.

Tangible benefits refer to the direct financial impacts of strategic workforce planning. By aligning the organization’s workforce with its goals and objectives, strategic workforce planning can lead to improved productivity, increased efficiency, reduced labor costs, and higher profitability. For example, identifying and addressing skill gaps within the workforce can help to reduce the need for external hiring and training, thereby reducing costs.

On the other hand, intangible benefits refer to the indirect, non-financial impacts of strategic workforce planning. These benefits may be harder to measure but can be just as important as tangible benefits. For example, strategic workforce planning can improve employee engagement, increase job satisfaction, and enhance the organization’s reputation as a desirable place to work. These intangible benefits can help to attract and retain talented employees, resulting in a more skilled and motivated workforce.

Strategic workforce planning offers both tangible and intangible benefits that can positively impact an organization. While tangible benefits can be easier to measure, intangible benefits should not be overlooked as they can contribute significantly to the organization’s success. By implementing a strategic workforce planning process, organizations can achieve a more sustainable and successful future.

• Cost Optimization:

It is essential to acknowledge that allocating resources effectively and optimizing cost plans are crucial aspects of strategic workforce planning. By streamlining recruitment processes and investing in long-term growth, organizations can attain an optimized cost structure.

Proactively planning recruitment efforts, reducing employee turnover, and retaining top talent can lead to enhanced productivity at a reasonable cost, providing a competitive advantage for the organization. By implementing strategic workforce planning, organizations can align their workforce with business goals, foster employee engagement and ultimately achieve sustainable success.

• Adapt to Workforce Changes:

It is no surprise that organizations have a diverse workforce, including individuals from different demographics and generations. The collaboration between the Baby Boomers and Gen Z can be a valuable asset to future growth, as each generation brings unique skills to the table. However, some employees may require additional training to realize their full potential, while others may be contemplating retirement and seeking new challenges. Developing a proper strategy to anticipate and mitigate these challenges is crucial for organizational success. By proactively addressing the diverse needs of the workforce, organizations can foster a culture of inclusivity and promote a supportive and engaging workplace environment that promotes sustainable growth.

• Address Workforce Gaps:

An essential element of strategic workforce planning is identifying skill gaps within teams. This process allows organizations to evaluate the core competencies of their employees and assess how they can impact long-term growth.

Based on this assessment, organizations can either replace current employees with suitable talent or provide them with opportunities for upskilling to retain them. This approach helps organizations build dynamic teams with diverse skill sets that add value to the organization and promote sustainable success over the long term. By implementing strategic workforce planning, organizations can ensure that they have the right talent in the right positions and maintain a competitive edge in their industry.

• Curate a Sound Recruitment Strategy:

Unforeseen departures, such as when a senior employee retires, can cause team imbalances and lead to the loss of a vital team member. However, a well-planned long-term recruitment strategy can help organizations deal with such situations and avoid unexpected departures caused by sudden resignations.

In addition, a long-term strategic plan should include internal recruitment, which involves promoting employees to higher positions based on their abilities and the team’s requirements. This approach can help organizations save on hiring costs while promoting employee retention. Therefore, strategic workforce planning is not just about hiring new people; it also involves promoting internal employees to meet organizational needs. By adopting a long-term recruitment strategy that includes internal promotions, organizations can ensure they have the right talent in the right positions and maintain a competitive advantage over the long term.

What are the Sound Practices for Workforce Planning?

Strategic workforce planning is essential for organizations to adapt to various changes in the workplace and ensure business agility, especially during challenging times like the Covid-19 pandemic. The pandemic has forced many businesses to adopt remote work as the new norm, requiring modifications in their business strategy to accommodate this shift.

To plan for a future-proof and dynamic workforce, organizations should follow some best practices, including leveraging past data and lessons learned to gain insights into their business needs. This involves breaking down the data into various segments such as departments or projects to get a clear picture.

Getting executive buy-in is also crucial to the success of any workforce planning initiative, as it affects every function within the organization. Without leadership support, key decisions may not be implemented, and the organization may not achieve its objectives.

Organizations must also continuously practice workforce planning and adapt to changes in their workforce and business model. This includes addressing factors such as employee turnover, retirements, promotions, and changes in product lines.

By adopting these best practices, organizations can create a dynamic workforce that is future-proof and can adapt to changing circumstances to ensure sustainable growth and success.

In Conclusion

Global hiring can be challenging due to compliance, onboarding, and payroll considerations. Voyager Partners recommends thorough research of legal and cultural aspects, robust onboarding processes, and partnering with a global payroll provider to ensure compliance. By addressing these challenges, companies can hire top talent from around the world and create a diverse and dynamic workforce.