Workforce Planning: Definition, Process & Best Practices

[ad_1]

The specific workforce planning process varies depending on the size of your business, industry and the labor market. In an unpredictable labor market or for a startup company, the workforce planning process may look out a year or two in the future. In contrast, a well-established company in a steady labor market might take a longer view. Below are some best practices to consider regardless of the specific duration of your workforce planning program:

1. Take the time to create a strategic plan

Effective workforce planning relies on having a concrete and actionable strategic plan. Not only does a well-formed strategic plan serve as a “north star” to guide you through the workforce planning process, but it can also help monitor progress and evaluate the impact of your proposed solutions.

2. Make workforce planning a collaborative process

Workforce planning works best when there is input from a wide range of stakeholders and there is buy-in across all facets of the business. Consult with different business teams and seek feedback from employees. When communicating the workforce plan, share information regarding the “why” and “how” so that employees throughout the organization understand the goal of any workforce changes.

3. Engage senior leadership in the process

Although workforce planning impacts HR, the process shouldn’t be delegated solely to the HR department. To be effective and sustainable, the workforce planning program should involve senior leadership, who should consider factors such as organization structure, succession planning, budgets, risk reduction and strategic plans.

4. Define your KPIs

To track progress and assess the impact of workforce planning solutions, it is crucial to have appropriate KPIs in place. Some common KPIs to include in your workforce planning program include employee head count, attrition rate, retention rate, promotion rate, tenure, quality of hire, voluntary vs. involuntary turnover rate, eNPS and diversity metrics.

5. Leverage data

Data is your workforce planning friend. By relying on data, you can make informed decisions and justify staffing decisions. Look at current staffing, employee retention rates, employee promotion rates, time-to-hire period and other vital measurements.

6. Pay attention to labor market insights

Understanding labor market trends, especially in your industry, will help you assess potential staffing needs. If multiple competitors are on a hiring spree, it could give you some key insights into where your industry is going and what your organization needs to do to prepare for it.

Find Your Next Great Hire Through ZipRecruiter’s Online Employment Marketplace

Try ZipRecruiter today by creating a free account!


Post a Job

7. Consider alternative solutions

Workforce planning extends beyond hiring and terminating employees. Workforce planning should consider several options, including technological solutions, temporary employees and contractors. Workforce planning might also include adjustments to operations to remove bottlenecks, enhance efficiency, scale operations and employee transfers. The most effective workforce planning programs use a combination of talent strategies to meet their needs, including hiring talent, developing talent, redesigning workflow, redeploying talent and contracting with talent.

Bottom Line

Workforce planning isn’t a quick fix; it takes time, effort and careful deliberation. But workforce planning is well worth the time and effort it takes. When done well, workforce planning can boost retention rates, minimize inefficiencies and help the business achieve its goals.

[ad_2]

Source link