Criteria for Effective Workforce Planning
Workforce planning is becoming increasingly important due to demographic changes – an aging workforce is one, lack of in-demand skills is another, as well as re-skilling challenges or even mass-retirement.
As workforce planning is about making sure that the right person is in the right job at the right moment, these four criteria must be considered when putting together such plan – the right size, shape, cost, and agility.
The goal of SIZE revolves around the number of people and job roles. A workforce that is too large is overstaffed and works inefficiently, while a workforce that is too small means that the organization isn’t producing what it potentially could produce.
The goal of SHAPE revolves around having the required competencies needed today and tomorrow. This means contingent to workforce planning is not only learning and development, but career development and succession planning as well.
The goal of COST revolves around reaching an optimum labor cost. Too much will bankrupt the organization but too little will result in work not getting done. Consider thinking which positions must be really full time and which ones an be outsourced.
The goal of AGILITY is about having a workforce that is lean and flexible and can adapt to changing market demands. The more flexible an organization in terms of size and shape, the more manageable its cost.
The approach to workforce planning will vary in timeframe, scale and the roles covered. It can be seen in fairly basic operational terms, ensuring the right number of people with the right skills are allocated to projects or work areas to meet day-to-day needs.
Whatever its form, workforce planning should be linked to the organisation’s goals and be part of the strategic business planning process. It offers an important opportunity for leaders to engage with and set the agenda for workforce change.
