STRATEGIC WORKFORCE PLANNING (SWP)

CHARLES COTTER

28 NOVEMBER 2013PALAZZO, MONTECASINO

Introduction

Key presentation topics

Summary

Questions

PRESENTATION OVERVIEW

SWP is a management process that is being increasingly used to plan for future labour needs, changes and challenges. It examines the current workforce and takes a strategic look at what the future workforce demands will be to develop a human resources plan of action.

SWP involves identifying, assessing, developing and sustaining employee workforce skills required to successfully accomplish business goals and priorities while balancing the needs and expectations of employees.

Through this process, organizations gain insight into their workforce capacity and labour needs so they can make strategic human resources decisions and take purposeful, timely action towards developing their people.

Essentially, SWP is identifying gaps between the labour demand of an organization and the available workforce supply, leading to strategies used to close those gaps.

DEFINING STRATEGIC WORKFORCE PLANNING (SWP)

STRATEGIC WORKFORCE PLANNING

Organized, well coordinated and systematic approach

Future-focused

Aligned with organization’s strategic plans

Collaborative effort (HRM has co-opted business partners to the process)

Work-in-progress (responsive not reactive)

Targeted for success (with a positive ROI)

Measurable outcomes

Integration (bundling) with other HR processes e.g. Succession Planning

BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP

“Strategic workforce planning helps organizations understand the talent required to deliver their strategy – without it, the costs are significant.” (Hay Group UK)

“A talented and aligned workforce is crucial for bringing strategy to life and ensuring an organization delivers on its objectives” (Hay Group UK)

“Bringing together the right information with the right people will dramatically improve a company’s ability to develop and act on strategic business opportunities” (Bill Gates)

“CEO’s expect the Human Resources function to play a much more active role in enabling business strategies.” (Deloitte, 2013)

THE STRATEGIC IMPERATIVE OF WORKFORCE PLANNING

Ensure adequate human resources to meet the strategic goals and operational plans of your organization - the right people with the right skills at the right time

Keep up with social, economic, legislative and technological trends that impact on human resources in your area and in the sector

Remain flexible so that your organization can manage change if the future is different than anticipated

PURPOSE OF SWP

TOP BENEFITS OF SWP

Value improvement and cost reduction – through right sizing the workforce

Assurance that business strategy can be delivered

Better productivity – through workforce alignment to operating model

Competitive advantage through a more skilled and innovative workforce

Higher quality and timeliness of customer delivery

Greater staff engagement and retention and lower levels of stress

SWP – IMPROVEMENTS AND COMPETITIVE ADVANTAGES

S CANNING

P ROFILING

A NALYZING

D EVELOPING

I MPLEMENTING

C ONTROLLING

SWP: S-P-A-D-I-C PROCESS/CYCLE

SWP PROCESS ILLUSTRATED

Review current HR and organizational strategies (Strategic Intent)

Conduct an environmental scan

Identifying workforce trends and challenges

Benchmarking

Preferred Scanning tools – SWOT and PESTEL Analyses

STEP 1: SCANNING – STRATEGIC ANALYSIS

Forecasting HR Demand

Measuring Current Supply

STEP 2: PROFILING

Forecasting should consider the past and the present requirements as well as future organizational directions

Number of employees

Type of employees

Skills requirements of these employees

Consider and assess the challenges and constraints

FORECASTING HR DEMAND

Assess the current HR capacity of the organization by means of the Skill inventories method

The knowledge, skills and abilities of your current staff need to be identified

Employee experience, education and special skillsCertificates or additional training should also be

included

A forecast of the supply of employees projected to join the organization from outside sources

HR indicators, metrics and indices e.g. turnover rates

MEASURING CURRENT SUPPLY

Right Size

Right Shape

Right Skills

Right Place

Right Cost

GETTING IT RIGHT

STEP 3: ANALYZING – RECONCILING/GAP ANALYSIS

STEP 4: DEVELOPING – STRATEGIC HR ACTION PLANS

Restructuring strategies

Training and development strategies

Recruitment strategies

Outsourcing strategies

Collaboration strategies

Integration strategies

STEP 5: IMPLEMENTING - INTERVENTIONS

STEP 6: CONTROLLING

Key points

Questions

Conclusion

Contact details:

Charles Cotter 084 562 9446 charlescot@polka.co.za Linked In Twitter: @Charles_Cotter

SUMMARY