Workforce Analysis & Planning
Long-term Human Capital Strategies begin with Workforce Analysis and Planning. Every organization can expect to be hit by the affects of an aging workforce. It is anticipated that by 2018 there could be a shortage of 5.7 million workers in the U.S. alone. As of 2012, 10,400 workers become age-eligible for retirement each day. (Bureau of Labor Statistics)
Workforce planning helps organizations create a competitive advantage by identifying potential shortages that will affect the business strategy and implementing plans to attract, develop, and retain skilled workers, especially when they are needed most.
Why Build a Workforce Analysis?
A workforce analysis is a study that looks into the make-up of your labor pool to identify information that will help you plan for future Human Capital needs. Properly collecting and analyzing the data will answer many important organizational questions:
- What turnover can be predicted from the demographics of our labor pool?
- Which specific positions may become vacant due to planned retirements?
- What risk is there to the organization should the vacancy occur?
- How will the available labor market be able to address these risks?
- Is there opportunity to fill positions from within the current workforce?
- Which critical positions should be targeted for replacement and over what period of time?
- What is the likely impact on organizational performance and what will the impact be on the business’ 5-year strategy?
Key Benefits of a Workforce Analysis
Workforce Analysis is more than the numbers, it’s about the impact on a organization’s ability to achieve it strategic objectives.
- What mission critical positions will be threatened by predictable vacancies?
- What needed competencies must be transferred to replacements?
- What enterprise-wide shortages will affect organizational performance?
- How will regional labor market gaps affect acquisition of key talent in a timely manner?
Creating Effective Workforce Strategies
Conducting a workforce analysis is just the first part of the equation. What do you do with all the workforce analysis data? Use the workforce analysis data to develop strategies that ensure that the right talent is available at the time they´re needed. This means:
- Identifying the competencies (business and role) that match the business strategy,
- Identifying critical, hard to fill and at risk positions,
- Defining the talent needs throughout the organization,
- Developing supply pipelines for needed positions,
- Creating retention strategies for critical talent, and
- Developing knowledge transfer systems.
Strategic workforce planning is not just about supply and demand; it's about having the right people to achieve strategic objectives!
What talent will we need?
- Match competencies to strategy
- Identify new skills and knowledge
- Identify possible turn-over and retirements
- Determine numbers of new positions
- Eliminate duplicate or low-value positions
How will we acquire the talent we need?
- Determine labor pools by location
- Determine competitive workforce challenges
- Develop pipeline partners
- Shorten hiring process
- Improve development process
- Install creative retention options