Presentation Louch-Strategic Workforce Planning

8/9/2019 Presentation Louch-Strategic Workforce Planning

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StrategicWorkforce

PlanningClarity. Simplicity.Expertise.


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Agenda

Defining workforce planning What are the key metrics of strategic workforce

planning? What data do I need? How do I segment my workforce and prioritize

investment in the right jobs? How do I forecast my future need for talent and conduct

gap analysis? What does a gap plan look like and how do I improve

talent management? About Vemo contact info for further inquiries


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What is best-practice workforce planning?

BEST PRACTICE DESCRIPTION

Supply-Based Optimizes current approach and talent investments

Integrates ViewpointsIncorporates perspectives of business leadership (strategic direction), finance(budget), line management (demand) and human resources (supply)

Strategy-Oriented Differentiates work activities that build competitive advantage and workactivities that do not

Forward-Looking What we will need, not what we did need

Enables Proactive

Behavior

Highlights future gaps in talent that we can start addressing today (number,

location and capability)Guides TalentManagement

Enables us to know on what talent to focus our recruitment, developmentand retention activities

Uncovers Cost Savings Determine what work can be done at lower cost with low risk (contingencyand outsourcing), and what work does not need to be done at all

Workforce Planning is how your organization delivers right talent,at the right time, in the right place, at the right cost


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Workforce Planning Will

Create a clear view of talent demand and supply issue by expensearea, reporting relationship and by location

Provide managers easy to use reports and tools to determine theimpact of their talent decisions and prioritize future workforceinvestments

Provide leaders the right metrics - identifying talent risk before itimpacts business objectives

Help control unplanned talent costs and highlight issues that limitemployee productivity

Build competitive advantage through planned vs. reactive talentmanagement


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Workforce Planning Guided Process

Workforce planning is a guided process that helps the businessarticulate its need for talent in such a way that Recruiting and HR canhelp the business meets its priorities

Business Priorities and Budgets

Business Priorities and Budgets Comprehensive Workforce Data

Comprehensive Workforce Data

Outcomes Guide Talent Management

Proactive Recruiting plan Critical talent Development and Retentionneeds identified Build-Buy-Lease decision-making

Talent Demand

The types and criticality of positions requiredto achieve business priorities Strategic staffing model incorporatingqualitative and quantitative demand drivers The number of people required in eachposition and when

Talent Demand

The types and criticality of positions requiredto achieve business priorities Strategic staffing model incorporatingqualitative and quantitative demand drivers The number of people required in eachposition and when

Talent Supply

Forecast of likely turnover and mobility foreach position Analysis of internal supply capability toidentify risk areas of not meeting demand Analysis of external supply availability to fillgaps that cannot be closed internally

Talent Supply

Forecast of likely turnover and mobility foreach position Analysis of internal supply capability toidentify risk areas of not meeting demand Analysis of external supply availability to fillgaps that cannot be closed internally

Gap Prioritized

Current State& Future State

Budget & ActualPerspectives


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Segmenting the workforce: a business-focused approach to workforce planning

Strategic roles arecritical to creating long-

term advantage


term advantage

Key roles are critical todelivering results within

current fiscal year


current fiscal year

Core roles are marginallycritical to business

priorities, but cannot dowithout



C r i

t i c a

l i t y t o B u s

i n e s s

Non Core roles are notcritical to any businessstrategies and may be

opportunity for costsavings



Strategic Hiring /Proactive Sourcing /

Effectiveness

Maintenance Hiring /On Demand Sourcing /

Efficiency

Hiring Avoidance /Efficiency

Recruitment Focus


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Strategic workforce planning drives newapproach to metrics

Recruitment Impact Metrics

Critical gaps closed Strength of critical talent sourcingpipeline Quality of hire by source Progress on forecast Non Core hire avoidance Strategic use of recruiting metrics

HR Impact Metrics

Functional Performance/PotentialMetrics

Forced ranking Multi-rater feedback Talent review Assessments Overall bench strength

Functional HR Measures(Examples)

Functional Turnover & RetentionMetrics

Percent turnover Type of turnover Retention investments vs. turnover Retention of high performers

Functional Recruitment Metrics

Time to fill Cost per hire Candidate experience/brand Compliance Hiring manager satisfaction

Performance Impact Metrics

Highest performers in critical roles Right competencies in right roles Strength of internal critical talentpipeline Strategic use of performance andtalent review tools and programs

Turnover & Retention ImpactMetrics

Turnover/retention of critical rolesand top talent Predictive turnover demographics How management developmentinvestments impact turnover Impact of retention investments

Strategic Measures

Hiring and retainingcritical talent to achievebusiness results

Talent investmentmodel: on strategy and

on budget

Size & criticality of gaps

Build vs. buy decision-making


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StrategicWorkforce

PlanningWhat are key metrics?What data do I need?


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Workforce Trending (Waterfall)

Who

Focus on highest levels, but available to all levels of department owners

What Historical workforce trending and projection

Why Are we growing on plan?


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Undesirable Turnover

Who Executives

What Configured view of turnoverof critical roles and criticalresources with drill down toemployee names

Why What is the turnover thatshurting the business and dowe care about everythingelse?

Quickly yields where thereneed to be managementaction plans (e.g. reasons whyand retention plan)


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Priority Retention Risk

Who All levels of managers

What Retirement risk andprojected attrition risk (basedon history, trendingdemographics) with drill downto employee names

Why Highly targeted retentionprograms focus on criticalpositions Pipeline hiring andsuccession/mobility

management to ensure thatcritical positions are staffedwith effective employees


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Build vs. Buy

Who Important to all, but goalis for Directors to focus onmanager level build vs. buy

What

Which positions are filledby true promotions vs.external hires

Why Becoming make not buy culture starts with fillingmanager roles and criticalindividual contributor roleswith internal talent, startingto build the pipeline


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Right People/Right Jobs Index

Who SVP to compare VPs; VPs tocompare Directors; Directors tocompare critical roles

What Configured measure of rightpeople as defined by business

area (e.g., performance review,achievement of bonus, topquartile sales achievement) inright jobs (critical segments)

Why Are we staffed according tobusiness priorities Is there a relationship betweenhow strategically staffed eachexecutive is to achievement ofpriorities if so, this is theavenue to build the talentmindset.


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Forecasting Future Gaps What is our Targeted Growthvs. Projected Supply After Attrition

Demand What are criticalpositions Where How many When

ProjectedTurnover &

Mobility

PerformanceUpgrading

Supply How many do wehave Do we have theright people

Even if gap is 0today, it needs tobe measured atforecast/futuretime frame

Gap includes: Growth Turnover Net Internal Mobility Performance UpgradingRequirements


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Strategic Hiring PlanCritical Segments What are the drivers for growth? Is our Strategic Hiring Plan aligned with

business plans and executive priorities?

Non Critical Segments What are the drivers for growth and reduction ? Is growth and reduction based on smart

efficiencies?


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Comprehensive workforce data Employees Contractors Organization Structure Budgets Open Positions

InputQuantitative & Qualitative

Business Objectives & Prioritiesfrom BU Executive Interviews

Talent Management Performance Measures Talent Reviews (Dir and VP) Custom performance metrics(e.g., Sales Quota attainment) Recruitment metrics

Workforce PlanDemand / Supply

Mapping and transforming data Baseline headcount forecast /plan based on historical turnover,mobility and budget

Redefine positions (job codes)if necessary Position segmentation by levelof criticality to achievingbusiness plan / objectives Demand Planning by position

Workforce Demographics Supply/Capability of currentemployees mapped against

Demand Analysis

OutputGap between Demand & Supply

Gap and hiring plans by criticalpositions The right metrics: e.g., good/badturnover, demographics, productivity

What will you startdoing? What will you stopdoing?

Quantitative QualitativeOutputs ManagementAction Plans

Key

Data Necessary for Workforce Planning


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StrategicWorkforce

PlanningSegmentation Model


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Segmenting the workforce: a business-focused approach to workforce planning


term advantage


term advantage


current fiscal year


current fiscal year





C r

i t i c a

l i t y t o B u s

i n e s s





Strategic Hiring /Proactive Sourcing /

Effectiveness

Maintenance Hiring /On Demand Sourcing /

Efficiency

Hiring Avoidance /Efficiency

Recruitment Focus


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Segmenting the Workforce: StrategicRoles

Strategic roles arecritical to creating

long-term advantage

Strategic roles arecritical to creating

long-term advantage

Focus/Measure StaffingApproach

Hiring Turnover

Effectiveness Grow or build Proactivesourcing andexternalacquisitions

Bad; very hard tofind and/ordevelop thisworkforce

Critical to all business strategies or critical to driving long-term competitive advantage

Creating new value for the organization, differentiation and innovation (CompetitiveAdvantage)

Day to day activities frequently focused on longer term time horizons working on businessproblems 3-5 years out

Typically populated by

Business leaders responsible for change/transformation/new priorities

Individual contributors with highly differentiated skills who will help drive future growth oforganization

Critical to all business strategies or critical to driving long-term competitive advantage

Creating new value for the organization, differentiation and innovation (CompetitiveAdvantage)

Day to day activities frequently focused on longer term time horizons working on businessproblems 3-5 years out

Typically populated by

Business leaders responsible for change/transformation/new priorities

Individual contributors with highly differentiated skills who will help drive future growth oforganization


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Segmenting the Workforce: Key Roles

Key roles are criticalto driving the current

year business planand objectives

Key roles are criticalto driving the current

year business planand objectives


Hiring Turnover

Effectiveness Grow in linewith revenue OR

Protect/Retain

Proactivesourcing(external andinternal)

Bad; createsimmediate risksof jeopardizingkey priorities

Critical to specific business priorities, objectives or initiatives

Day to day activities frequently focused on the 12-18 month horizon, working on driving keyresults for current or next fiscal year; business results at risk if do not have enough or theright talent in these positions

Have critical or differentiated skills that help drive achievement of specific initiatives and

objectives, or who deliver the brand promise to the marketplace through customer-facingactivities

Business leaders and Directors focusing on customer facing priorities & SLT level objectives

Individual contributors focusing on customers and/or key revenue enablers (found across organizationwith higher concentration in revenue centers than cost centers)

Critical to specific business priorities, objectives or initiatives

Day to day activities frequently focused on the 12-18 month horizon, working on driving keyresults for current or next fiscal year; business results at risk if do not have enough or theright talent in these positions

Have critical or differentiated skills that help drive achievement of specific initiatives and

objectives, or who deliver the brand promise to the marketplace through customer-facingactivities

Business leaders and Directors focusing on customer facing priorities & SLT level objectives

Individual contributors focusing on customers and/or key revenue enablers (found across organizationwith higher concentration in revenue centers than cost centers)


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Segmenting the Workforce: Core Roles

Core rolesoperationalize businesspriorities, but are notthe key drivers of the

business plan

Core rolesoperationalize businesspriorities, but are notthe key drivers of the

business plan


Hiring Turnover

Productivity /Efficiency

Hold steady orsometimesmanageattrition

Maintenance/hire as needed

Can be neutral ifnot excessive

Most of the workforce is in this segment.

Does not create significant new value for company or directly responsible for delivering keyresults, but may support the work done by Strategic or Key roles

No competitive advantage derived from doing this work extraordinarily well but impact ifwork done poorly- must meet threshold standards for industry group

Can often be a skilled workforce, but the skills may not be directly linked to differentiatingyour organization in the marketplace

Look for productivity gains, such as eliminating redundancies, spans of control, overtime,time to productivity, etc.

Most of the workforce is in this segment.

Does not create significant new value for company or directly responsible for delivering keyresults, but may support the work done by Strategic or Key roles

No competitive advantage derived from doing this work extraordinarily well but impact ifwork done poorly- must meet threshold standards for industry group

Can often be a skilled workforce, but the skills may not be directly linked to differentiatingyour organization in the marketplace

Look for productivity gains, such as eliminating redundancies, spans of control, overtime,time to productivity, etc.


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Segmenting the Workforce: Non Core Roles

Non Core supportday to day operations

but are not keydrivers of thebusiness plan

Non Core supportday to day operations

but are not keydrivers of thebusiness plan

Focus/Measure Staffing Hiring Turnover

Streamlining,Efficiency

ManageAttrition,Outsource,Redeploy

Avoidance unlesscan makebusiness case

Often good iftalent not re-deployable

Non Core roles can represent areas for streamlining and cost reduction (especially to fundinvestments in Strategic and Key roles) and at minimum are typically not roles that requirenew investment

Periodically examine if still need to do this work often want to manage attrition

Can seek efficiency gains within the population without risking organizational objectives (e.g.,

outsourcing of transactional activities)Can sometimes represent work activities that were once important or necessary but are nowobsolete

Non differentiated or generic skills - can be delivered through flexible/variable workarrangements

Non Core roles can represent areas for streamlining and cost reduction (especially to fundinvestments in Strategic and Key roles) and at minimum are typically not roles that requirenew investment

Periodically examine if still need to do this work often want to manage attrition

Can seek efficiency gains within the population without risking organizational objectives (e.g.,

outsourcing of transactional activities)Can sometimes represent work activities that were once important or necessary but are nowobsolete

Non differentiated or generic skills - can be delivered through flexible/variable workarrangements


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Demand planning best practice examples

What Why WhoPlanning by talentinvestment instead ofheadcount

Underlying shifts in types of competenciesneeded require portfolio mgmt vs.headcount mgmt approach to stay onbudget

About 1 in 5 orgs says itsimportant

Planning based onsegmentation

Segmentation particularly for knowledgework that is not workload ratio based isuseful proxy for staffing up, holding steadyand staffing down

About 1 in 2 says is important

Demand forecasting bysumming probability ofmultiple outcomes

Allows organization to model multiplebusiness outcomes with defined probability(e.g., using Monte Carlo method) to definemost likely demand for talent

About 1 in 10 organizations(typically government,healthcare and/or engineering)says is important

Competency inventory Establishing targeted competencies, skills orKSAOs of key jobs and taxonomically linkwork profiles enables intelligentredeployment of human capital

About 1 in 10 says importantnow and about 1 in 5 saysimportant in future

What if modeling Model multiple business scenarios todetermine best workforce plan

About 1 in 4 says important todo regularly

Long term talentpipeline planning

For highly skilled talent where knowledgetransfer is issue, requires understanding of

job progression/flow

About 1 in 3 says important, notalways right away


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Key demand planning considerations

Key Questions Is headcount level appropriate, too low, or too high? Is the skill mix/capability level correct?

Practical considerations Work design, organization Skill requirements (considering work content changes) Workload/utilization Productivity/effectiveness Systems Budget Projects/contracts

Specific ratios governed by industry standards, contract orregulation

Service-level, contract driven staffing (e.g., first level, second

level support) Sales staffing per territory Customer service call volume Regulatory and safety requirements Admin level support policy


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Set of actions should decrease cost, in approximateorder of consideration

Example: demand decision tree

Strategic & KeySegments

Core & Non CoreSegments

Set of actions may increase or preserve current coststructure; logical decision flow shown

Shift Investment

Right Locations?- Close to Customers

- Close to Other Strategic Talent

Adequate Talent for Strategic /Operating Objectives?

Source (Build vs. Buy)?- By time to skill maturity

Appropriate Comp?- Appropriate to Benchmark

- Specific Benchmark- Retention Incentive

Appropriate ValueProposition?

Right Locations?- Lower cost Locations

Surplus Headcount?

-Obsolete/Non-Core Roles- Oversupply of specific role- Right levels of Role

Source (Build vs. Buy vs. Lease)?

- By total cost

Appropriate Comp?-Median/Lower Benchmark

-- General Benchmark- Non $ retention effort

Opportunity to ReduceOverhead?


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Supply analysis best practice examples

What Why WhoGood vs. bad vs. neutralturnover

Looking through lens of segmentation helpsbetter understand turnover, mobility,retirement, performance, and other metrics

About 4 in 5 says important

Relocating work basedupon labor cost and

availability

For certain positions to realize best cost oflabor or to ensure adequate supply


Predicting risk ofturnover/drivers ofretention

By observing outcomes, can infer functions(e.g., using neural network analysis) thatpredict likelihood ofturnover/retention/talent availability

About 4 of 5 organizationssays important but do notunderstand how, or if theyhave data to do so

Predicting future supplyavailability throughpromotion of staff

If have a non-constrained promotionsystem with steady demand, can design asystem (e.g., through Markov chain theory)to predict progression of talent through

promotion system

Government/militaryorganizations throughoutworld have worked on this all systems have limitations

Using variable entry-levelsupply pool

Creates a talent hedge to eliminate risks ofinternal supply shortage


Using hiring data as aindex of supplyavailability (exampleprovider Employon)

Organizations need a data-based method ofknowing what the competitive demand forlabor is that can be factored into workforceplanning decision-making

About 4 in 5 says generaltopic important


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Key supply considerations

Determine if have supply or have access to supply to meet demandrequirements

Looking forward helps develop understanding of true gap from forecast Helps make sourcing, development and retention decisions Conduct environmental scans and external supply availability analysis

Key projected (aged) workforce categories Voluntary attrition Retirement Mobility (transfer from role internally) / redeployments / redeployable

Consider linkages to performance and assessment systems (e.g.,competency, talent review, etc.)

Factor in performance and capability upgrading? Actuals or estimates? Position eliminations are not included (part of demand forecast)

Determine whether to estimate or analyze projected (aged)workforce

Estimation is often sufficient, augmented by studies of attrition by role or

by role-location for Strategic talent Historical rate is not always going-forward rate (marketplace/industrytrends - experienced by all competitors/companies can be primary driverof rates)

Can develop precise view of retirement eligibility; have to estimateretirement likelihood

Robustness of demand planning process (what do we need?) enablessome latitude in supply evaluation process (what might we have?)


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Turning gap plans into talentmanagement action plan

Segmentation and the right metrics/analytics allow an organization totransform its approach to talent management and construct a targeted actionplan for each business area

Create a recruiting plan that is focused on adding the right talent to drive the business. Moveaway from prevalent and harmful practices of automatically backfilling or hiring to budget

Assess if right people in right jobs and key retention risks for critical roles and resources Recognize future gaps sufficiently in advance to make quality decisions about acquiring,developing or leasing talent

Align rewards and retention practices with business criticality of workforce Proactively identify roles for which you will no longer need the talent then you can maximize

opportunities to redeploy into more business critical roles

Segmentation and the right metrics/analytics allow an organization totransform its approach to talent management and construct a targeted actionplan for each business area

Create a recruiting plan that is focused on adding the right talent to drive the business. Moveaway from prevalent and harmful practices of automatically backfilling or hiring to budget

Assess if right people in right jobs and key retention risks for critical roles and resources Recognize future gaps sufficiently in advance to make quality decisions about acquiring,

developing or leasing talent Align rewards and retention practices with business criticality of workforce Proactively identify roles for which you will no longer need the talent then you can maximize

opportunities to redeploy into more business critical roles

Workforce AnalyticsWorkforce Analytics

Reward &Retain

Reward &Retain

RecruitmentPlan

RecruitmentPlan Acquire Acquire DevelopDevelop Assess Assess

Transition &Redeploy

Transition &Redeploy

Business Workforce Action Plan


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StrategicWorkforce

PlanningThank You!About Vemo


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About Vemo

Clarity. Our technology and process untangles the mess andcloudiness of the typical organizations data to provide a clear view ofworkforce trends, current workforce state and future workforceprojections & plans.

Simplicity. Easy to launch, easy to use. Expertise. We provide the expertise and resources that will enable

you to gain immediate traction with WFP and long-term results.

Develop a prioritizedapproach to talent

investments

Develop a prioritizedapproach to talent

investments

Build a comprehensive,forward-looking talent

forecast

Build a comprehensive,forward-looking talent

forecast

Aggregate and unifyworkforce data to

develop metrics and

performance indicators

Aggregate and unifyworkforce data to

develop metrics andperformance indicators

Better connect talentmanagement

programs to businessneeds

Better connect talentmanagement

programs to businessneeds

WILL ENABLE YOU TOOUR SERVICES

? Enterprise WorkforcePlanning (Direct Access)

? Getting Started Workforce

Planning as a Service? Analytics: The Right Metrics

? Expert Consulting

? Support to Drive Success


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Vemo Software: Our Methodology

HRMSHRMS

Financials / BudgetsFinancials / Budgets

Talent ManagementTalent Management

Use trend analysis tobetter predict future

workforce

Unify and easily manipulateworkforce data from

multiple sources

Tailor Key PerformanceIndicators to workforce

goals

VemoAnalyticsVemo

AnalyticsVemo

PlanningVemo

Planning

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For further information

Peter LouchFounder & CEOVemo(917) 443-4572

[email protected]@vemoinc.comwww.vemoworkforce.com

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Presentation Louch-Strategic Workforce Planning