Summary
The concept of workforce planning (known in English as Workforce Planning) is not a very recent concept, however it is not a well-known concept in the world of small or medium-sized local companies since the management and management of their workforce is usually not very complex. However, this concept has been gaining importance among large corporations that have a global presence and that have been forced to think and manage their human capital in a much more strategic way within an increasingly competitive market.
Introduction
The concept of workforce planning can be understood from its simplest way, such as planning the number of people necessary to carry out an operation of an organization properly, to the more complex approach that provides a strategic approach. and global to not only make sure you have the necessary staff, but also know where to have it, when to have it, how to obtain it and how to evolve it in such a way that it represents a competitive advantage for a complex organization.
The concept of workforce planning
As Cunningham (1) comments, “strategic workforce planning serves as a managerial frame of reference for making staffing decisions… to have the right number of people with the right set of skills in the jobs and times. suitable. "
Together with this, we have to take into account an important factor for many companies, and that is the cost factor; In this way, it is not only knowing the when, how, where and characteristics of the workforce, but also knowing how to include the cost factor to create an adequate balance and allow the company to be competitive.
The concept, therefore, is a complex concept, which is not based only on one dimension (quality, efficiency, effectiveness, cost, etc.) but on the combination of all these dimensions, in such a way that they serve as a frame of reference. to make the most convenient decisions according to market conditions, the mission of the company and the objectives and goals of each of its business units that collaborate in the achievement of the general goal of the organization.
Based on the above, therefore this concept must be conceived as a tool of great value for any global company in achieving its business strategy, and not only as a responsibility of the human resources department, but as a network of decisions between the operational, the tactical and the strategic.
Cunningham (1) mentions something that is extremely crucial and it is the concept of temporality. The workforce analyzes must show trends, which indicates that nothing is static 'conditions change and therefore the strategy must adapt to present conditions and prepare for future conditions.
If a current situation is taken into account, without considering the past (as a certain phenomenon has evolved) and the uncertainty of the future, it is quite possible that the decisions made are not the right ones. In the same way, if only one dimension related to the workforce is analyzed, without taking into account multiple dimensions (geography, job family, job level, performance ratings, tenure, business unit, etc.) and comparing them with the objectives of the company to achieve a much more holistic and efficient analysis.
Each organization must be aware of the condition of its workforce and the needs of the business, as well as the demand for skills and knowledge and of course the availability (local or global existence) of people with those knowledge or skills required.
May (2) comments on the concept "headcount" (known by the acronym HC in many companies) and that is used as a basis for doing workforce analysis, where the budget dictates the "headcount", based on cost average of an employee and what can be paid for a particular period.
The purely cost-based approach neglects such a crucial aspect as the need to have the right human resources to fulfill the business strategy, and as Mayo points out, the problem with pure financial analysis is that they may not distinguish between people who represent only a cost to the company and those who are actually an investment; that is, those who add value through research and development of products, services, and relationships with clients and consumers, and even those who add intangible value through motivation and commitment that it generates in the workforce.
This is therefore a critical point that we wish to highlight in this reflection; not conceiving of workforce planning as a mere cost-per-head financial exercise because it is in that approach that the principle and value of workforce planning is lost. There are many other dimensions that must always be considered, including the “know how” that is often lost when reducing staff in an organization or moving operations to other countries.
Mayo shares a very interesting chart on the factors to consider when working on workforce planning.
Workforce planning in global companies
Mayo, A. (2)
In summary, there are 5 critical factors that must be rescued:
- Vision and strategy Demographic changes Technological change Skills needed Supplying both internal and external talent
Vision and strategy are crucial to define the structure, qualities, qualities and location of the workforce. If the workforce is not aligned with the strategy of the company, the entire planning exercise is worthless.
Demographic changes have a major impact on the analysis of the present and future workforce.
Through the proper analysis of these changes, it can be determined how the organization can take advantage of the new profiles of potential workers (for example: more technological, with greater knowledge and specialization in certain fields, with the use of one or more languages, with a leadership and communication other than traditional approaches, etc.) and design the strategy to also allow the integration of current and future generations with the experienced workforce that has been in the company for several years and even decades (facilitate the gap generational in work environments).
The change in information and communication technologies directly affects the ability of the company to automate processes and make them much more efficient, reduce the need for certain jobs that do not generate value and develop staff to take on greater challenges within the company. organization, taking advantage of its experience and knowledge while allowing it to evolve and create more added value.
The capacities that are needed are always linked to the needs and evolution of the market. And because the global world is increasingly demanding, every organization must be aware of changes in demand, which in turn influence the need for a workforce that adapts to these changes and facilitate the achievement of a clear competitiveness over other companies.
Those capabilities can range from technological knowledge, the ability to research and develop new products and services, to other skills related to the ability to work in collaborative virtual teams, rather than traditional hierarchical models.
The provision of trained people is extremely important as it is what allows organizations to direct their attention to certain geographic locations where they can more easily find people with those critical skills and not risk reaching a point where they lose. competitiveness by not having the right personnel to achieve your goals.
Importance of workforce planning
As noted in the previous points, workforce planning is much more complex than you might think.
Wilkerson and Oldridge (3) comment that an effective workforce planning process goes beyond a few discussions of what the organization will need in the future, but consists of creating a blueprint of how it will acquire, adapt and achieve the workforce that the company needs.
This is definitely one aspect that sums up the importance of workforce planning. This process allows the organization to anticipate changes, creating a bridge between what you have in the present and the vision of what you want to have in the future, within the general vision and goals of the company.
In summary, the planning of the workforce is of the utmost importance for any company, and not only those large corporations, but any company, regardless of its size, since the concept itself allows the organization to anticipate and act, not in a way reactive, if not proactive, anticipating needs and preparing to meet them.
If the organization understands the structure, composition, capabilities, and skills of its workforce, it can design an action plan to make the necessary adjustments to make a difference between average performance and being a leader in the market in which it operates.
It is therefore crucial to ensure at all times that when planning the workforce there is a direct link with the business objectives, as well as to ensure that actions are taken through a structured plan with clearly defined goals and deliverables.
Similarly, it is extremely important for the organization to know which metrics it will use as a reference to measure the success of the plan's implementation. Metrics that have clear goals, as well as a system to constantly evaluate performance in achieving them, with evolution and change in the workforce being a constant objective.
Wilkerson and Oldridge (3) share a table of mechanisms that can be used to change and even create an evolution of the workforce:
Workforce planning in global companies
It is imperative to maintain a constant effort to attract the necessary workforce to meet the goals of the business, and one way is through an adequate process of recruiting, selecting and hiring talent.
Similarly, the development of internal talent is certainly important to allow opportunities for growth and open new spaces for new people, while internal talent can add value in other more critical positions.
In some cases, it is possible to work together with universities and other organizations in joint research and development programs, without the need to hire more personnel, but rather to work in a collaborative environment that benefits both parties.
In other instances, the organization may acquire other companies that already have the required talent, rather than spending a lot of resources building the workforce through lengthy and tedious search and hiring processes.
And finally, in certain cases, it will be necessary to make workforce reductions in areas where it is no longer considered that there is value generation and where the company considers it pertinent to save costs or re-invest them in other areas that do generate that added value and allow you to be much more competitive.
To conclude, the complexity of the workforce planning process and the importance that it represents for a company that wants to be competitive is evident.
Large companies such as IBM, Hewlett Packard, American Airlines, Procter and Gamble, and many others, have turned their eyes to this type of exercise to ensure a competitive advantage and be prepared for the future.
As seen in the diagram below, the KPMG company is one of the companies that is clear about the workforce planning process, in which an isolated analysis has no place, but rather the process involves multiple steps that go from preparation (data collection), the planning itself, until the implementation of the actions of the plan.
Steps to Strategic Workforce Planning
Source (4): KPMG's 10 Steps to Strategic Workforce Planning.
Conclusions
Strategic workforce planning serves as a managerial framework for making staffing decisions that should be based on business goals and objectives.
The concept of workforce planning is a complex concept. It's not just about planning based on a separate dimension, such as just quality or efficiency or cost. It should be based on the combination of all these dimensions, which constitute a holistic approach and serve as a frame of reference to make the most convenient decisions according to market conditions, the mission of the company and the objectives and goals of each one. of its business units.
Workforce planning is an extremely valuable tool for any global company to achieve its business strategy. It is not a responsibility that is solely the responsibility of the human resources department, but rather it is HR teamwork with the businesses, to create a balance between the operational, the tactical and the strategic.
Workforce planning is of the utmost importance for any company, not only for large corporations with offices and operations in several countries and with complex divisions, but it is an important exercise for any company, regardless of its size, since the The concept itself allows the organization to anticipate and act proactively, reducing risks and preparing to meet future needs.
There is a growing number of large companies that have made strategic efforts for years to plan their workforce, and they see this exercise as a key activity for the success of their operations and to have a competitive advantage, always looking to the future.
References
- CUNNINGHAM, THERESE. "Workforce Planning Literature Review" Chandler Mcleod Consultants. pp. 7-14, Perth, Australia, 2008. MAY, ANDREW. C Workforce Planning - A Vital Business Activity, available at http://mayolearning.com/assets/Uploads/Publications.pdf WILKERSON, BRIAN E. & OLDRIDGE, AMANDA. Workforce Planning: Making Organizations More Agile.KPMG. KPMG's 10 Steps to Strategic Workforce Planning. Available at:
