Ensuring your organisation has the right talent in place to navigate future challenges is key. This is where workforce planning, often referred to as succession planning, comes into play. It's not just about identifying replacements for key positions, it is a strategic process that helps you anticipate future talent needs, develop your existing workforce, and build a talent pipeline to secure long-term success. In this week’s HR article, we will explore the key elements of workforce planning, discuss the benefits, and provide advice on how you can implement this strategy in your organisation.

What is workforce planning?

Workforce planning is the process where you review labour supply (current workforce) against demand (the number of people you need), determine what the future needs are and identify the gap between the present and the future. The aim is to get the right number of people, with the right skills, employed at the right time.
What are the benefits of workforce planning?

Workforce planning can significantly impact on an organisation’s success. Some key benefits are that it:

• Aligns HR with the business strategy
• Improves employee retention
• Minimises hiring costs
• Overcomes talent gaps
• Refines recruitment processes
• Anticipates change and prepares for the future

What does strategic workforce planning involve? 

Once you have insight into your businesses current state or play and you have gauged what the future demand for skilled talent may be, you should then develop a set of actions that will build a strong workforce and grow the company to meet the demand.

There are two aspects of workforce planning that can help break down the key focus areas:

1. Soft Workforce Planning – this involves developing a strategic framework where business data can be assessed. It is important to be flexible and responsive to business needs while maximising performance. Consideration should be given to a range of possible outcomes before implementing any actions that could be brought about by a change of circumstances.
2. Hard Workforce Planning – Predicting future staffing needs depends on data, but numbers alone aren’t enough. To achieve business objectives, data must be analysed and understood in context to ensure the business objectives are met within budget. 

Stages of Workforce Planning

• The workforce planning process can take many forms. Stakeholders from all parts of the organisation should be involved, as this ensures that they understand the data and what it means for short- and long-term resourcing needs. The stages are:
• Understanding the organisation and operating environment – what does the structure of the organisation look like now and what will it likely look like in the future? Are there plans to increase productivity or changes to the organisation structure and processes? 
• Analysing the workforce – identify and analyse knowledge, skills, abilities and talent profiles as well as attrition rates and other factors such as employees’ views on job security, satisfaction and intention to leave.
• Determine future workforce needs – identify future skills and capabilities. Scenario planning can show how different futures might affect people requirements and help to formulate contingency and adaptive plans for achieving future goals.
• Identify gaps in workforce skills and knowledge - future roles likely need greater technological and digital awareness. When recruitment, retention or both present a challenge, skills will need to be built via staff development or borrowed via outsourcing. 
• Develop an action plan that has functional, numerical and adaptational flexibility - an agile workforce who can adapt to change will create a change-ready organisation which can proactively restructure, as needed. 

Implementing Workforce Planning

Successful workforce planning is dependent on effective implementation. Key factors for success include:

• Generate consensus on the plan: A collaborative approach is vital. The process needs wide-ranging consultation with stakeholders to enable all parties to agree and understand the rationale for the actions being taken.
• Clear responsibilities: Defining roles and expectations clearly empowers individuals to take action.
• Managerial support: Equipping managers with the skills and resources to contribute effectively to the planning process is crucial.
• Continuous improvement: Regular evaluation and knowledge sharing enhance the workforce planning process over time.
• Data integrity: Maintaining accurate and consistent workforce data is essential for informed decision-making.

Effective workforce planning is an investment in an organisation’s future. By proactively identifying talent gaps, developing existing employees, and aligning workforce strategies with business objectives, organisations can build a resilient and high-performing team. While the process requires time and resources, the long-term benefits in terms of increased productivity, reduced turnover, and sustained growth, make it a critical component of overall business success. Embracing workforce planning as a strategic imperative is essential for navigating the complexities of today's dynamic business environment.