Take for example the phenomenon of the Great Resignation as an aftermath of the COVID-19 crisis. Whereas, before, talent leaders would see an uptick in resignations because workers are finding better career prospects and bigger pay elsewhere amid the global talent war; these days, companies are witnessing the exodus of employees who are searching for more meaningful work post-pandemic. It's a trend no one could have predicted at the start of the crisis. A trend that challenges the concept of workforce planning.
It's tempting to subscribe to traditional notions of workforce planning as simply a method of identifying staffing requirements by department or business unit, then setting a financial plan to prevent over-hiring or under-hiring.
However, if leaders genuinely believe in the strategic role of HR in transforming their business, then they would see workforce planning as a comprehensive approach to both talent and business management. This includes strategies for upskilling/reskilling, talent mobility, and succession planning, to name a few.
What critical factors should organizations consider when designing their approach to workforce planning and allocating resources to workforce management? Here are five elements to ensure success:
1) Enterprise goals
Before embarking on any investment plan, firms look within the organization first to identify their human capital needs. A crucial part of this is incorporating talent plans into the framework of their enterprise goals. Is the organization planning to enter new markets? If so, by how much will the workforce increase and in which regions or divisions? Is the company launching a new product or service within the year? Which skills will they need to develop internally, or hire for externally?
2) Strategy, policy, and process alignment
After setting their business goals, leaders across functions must work together to plan how their objectives will translate into workforce strategies, policies, and processes. For example, organizations that are going through a merger will need to sit down and identify which talent processes will prevail when assessing their staffing and skilling needs.
Another example is when a company enlists the help of a contingent workforce. Managers will need to standardize their approach to onboarding contractors whose roles and access requirements will be different from tenured employees.
3) Talent sourcing and skilling
Workforce planning entails knowing where to look for talent and placing them where they will drive the most impact. Having the right data on staffing requirements is the first step to identifying these gaps. Only then can leaders match requirements with the supply of talent already available in the market.
One trend that is redefining workforce planning today is internal talent mobility or hiring from within the organization. As more individuals explore upskilling, reskilling, and taking on new career challenges, they open a new resource that employers can deploy.
4) Financial planning
An integral part of workforce planning is financial planning. It requires knowing how to budget for the right caliber of talent and the optimal size of the workforce for a given time. This is why HR and talent leaders work closely with Finance to identify the cost to building their talent pool and nurturing their members.
5) Technology investment
All the elements above come together with the right platform in place. Modern workforce management tools shift the focus from static headcount management to active planning by streamlining data from HR, Finance and Corporate teams and preventing silos.
Real-time changes to the workforce can be reflected on a shared dashboard to give stakeholders access to the information they need for optimizing work. Alight's Human Capital Planning solution, for example, goes beyond presenting current staffing requirements. It also analyses and predicts future opportunities for the enterprise by presenting data on workforce expenses and employee performance and turnover.
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Regarding the concepts mentioned in the article you provided, let's discuss each one in detail:
The Great Resignation
The Great Resignation refers to the phenomenon of a significant number of employees leaving their jobs in the aftermath of the COVID-19 crisis. Unlike previous times when resignations were driven by better career prospects and higher pay, the current trend is characterized by employees seeking more meaningful work post-pandemic. This unexpected trend challenges traditional concepts of workforce planning.
Workforce Planning
Workforce planning is a comprehensive approach to both talent and business management. It involves identifying staffing requirements, setting financial plans to prevent over-hiring or under-hiring, and incorporating talent plans into the framework of enterprise goals. Workforce planning also includes strategies for upskilling/reskilling, talent mobility, and succession planning.
Elements of Successful Workforce Planning
To ensure success in workforce planning and resource allocation, organizations should consider the following critical factors:
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Enterprise Goals: Before embarking on any investment plan, organizations should identify their human capital needs by aligning talent plans with their enterprise goals. This includes considering factors such as entering new markets, launching new products or services, and determining the required skills.
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Strategy, Policy, and Process Alignment: After setting business goals, leaders across functions must work together to plan how their objectives will translate into workforce strategies, policies, and processes. For example, during a merger, identifying which talent processes will prevail when assessing staffing and skilling needs is crucial.
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Talent Sourcing and Skilling: Workforce planning involves knowing where to look for talent and placing them where they will have the most impact. This requires matching staffing requirements with the available talent supply in the market. Additionally, internal talent mobility, where individuals explore upskilling and reskilling, provides organizations with a new resource to deploy.
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Financial Planning: Financial planning is an integral part of workforce planning. It involves budgeting for the right caliber of talent and determining the optimal size of the workforce for a given time. HR and talent leaders work closely with Finance to identify the cost of building the talent pool and nurturing its members.
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Technology Investment: Modern workforce management tools play a crucial role in effective workforce planning. These tools streamline data from HR, Finance, and Corporate teams, enabling real-time changes to be reflected on a shared dashboard. They provide stakeholders with the necessary information for optimizing work and analyzing future opportunities.
It's important to note that the information provided above is based on the search results and my knowledge base. If you have any specific questions or need further clarification, feel free to ask!
