What is Strategic Workforce Planning
Why Businesses Need Strategic Workforce Planning
Modern businesses constantly experience fluctuations in their workforce needs. While some of these changes arise from predictable seasonal variations, others stem from factors such as holiday trends, worker vacations, or parental leaves.
Given the diverse departments within a business, it's evident that certain areas demand a higher personnel allocation than others. Strategic Workforce Planning empowers businesses to anticipate, adapt, and address these ever-changing workforce requirements efficiently.
Areas to Consider
When creating a strategic workforce plan, management must:
- Analyze the current workforce
- Determine the future requirements for the workforce
- Identify the gap between the present and the future requirement
- Identify solutions and
- Implement solutions to address skills mismatch, shortages or surplus in workforce
- Monitor and evaluate the actions
Benefits of Strategic Contingent Workforce Planning
A planned, measured, and optimized workforce is crucial for the seamless operation of any business. Without proper planning, organizations can face significant constraints that hamper their efficiency. Unfortunately, many businesses haven't fully realized or implemented an effective contingent workforce planning framework.
One widely recognized approach that businesses employ is the 'Seven Rs' of strategic workforce planning. The Seven Rs are:
The Seven R’s
The right people.Is the workforce currently comprised of every skill set required to work efficiently?
Who has the right skills.Is there any department that could benefit from the addition of new skills?
In the right roles.Are there wasted skills which might be better used within another position?
With the right size.Is there a large enough workforce to produce optimal output? Is it too large, or too small?
In the right place.Are workers’ content in their position or would they be happier working on another aspect of the business? Would they produce more in a different role? Is there a need to import additional workforce in certain areas to meet demand?
At the right time.Is the workforce optimal at all times? Are there seasonal fluctuations?
At the right cost.Are we paying enough to maintain an effective workforce? Are we paying too much for the skillsets as compared to the current market? Would it be more expensive to employ the workforce full-time or bring in contingent workers where fluctuations occur?
The benefits of strategic workforce planning can be seen when considering the seven areas. By getting the size and makeup of the workforce right in terms of skillsets and positions within the team, money can be saved, and output can be improved.
By adopting such structured methodologies, businesses can achieve:
- Improved operational efficiency.
- Reduced costs associated with hiring, training, and retention.
- Better preparedness for market fluctuations and changing business environments.
- Enhanced ability to identify skills gaps and address them promptly.
- Increased flexibility and agility in responding to business opportunities and threats.
In essence, strategic contingent workforce planning not only prevents potential challenges but also positions businesses for sustained growth and success.
It is important that human resources consider the effect of strategic contingent workforce planning since it touches upon many aspects of the business. Efficiency and cost opportunities are key to maintaining optimization, and this will always include strategic workforce planning.
Taking the time to map out a strategic plan will allow the business to save money and grow, while lowering turnover and making the best use of the skills held across the workforce. Contingency planning across any business should always include a solid understanding of existing and future workforce requirements.
If you find that your business struggles with optimizing its workforce, you're not alone. Navigating the complexities of the 'Seven Rs' and integrating them into your overall business strategy can be challenging.
But remember, there's no need to go through this journey alone.
At TCWglobal, our team of experts specialize in guiding businesses through the intricacies of strategic workforce planning. We understand the importance of aligning your workforce needs with your long-term business objectives. Whether you're just starting to think about strategic workforce planning or looking to refine an existing strategy, we're here to help. Reach out to us today to ensure your business is positioned for optimal growth and success. Don't leave one of the most crucial aspects of your business to chance—partner with TCWglobal and empower your workforce strategy.