While technology is dominating the domain of human resources and recruitment today, there are other aspects as well that needs attention. Among them, strategic workforce planning happens to be one.
While a lot has been discussed prudent workforce management and various actions taken as well, still a lot remains to be done. The task of truly implementing labour pool is rather tedious as it is also one of the most difficult concepts to define. Nonetheless, organizations do delve into the nuances and are trying to make the best use of the same.
What is workforce planning?
Workforce planning refers to a set of processes that an organization can implement to define, align and optimize the workforce capabilities required to execute the organization’s strategy for both—today and the future.
Why a strategic workforce planning is essential?
Well, the workforce is probably the most important aspect of an organization, and the latter should make all the efforts to strengthen its human capital. If an organization does not have the right percentage of the workforce, it will not be able to meet its business goals. Therefore, a proper strategic workforce planning is highly essential.
Workforce planning is significant in maximizing profit, avoiding unforeseen circumstances and also ensuring long-term organizational success. It provides company leaders and managers with robust data and metrics which can be adopted to recognize workforce risks before it impacts business objectives. This is precisely the reason why workforce planning is an essential tool for every organization.
How can workforce plan help organizations?
If utilized and implemented correctly, workforce planning can help businesses in a lot of ways. It can benefit them a catalogue and forecast issues early, contribute to bypass unexpected costs and disruptions. It can help a company in identifying critical roles as well as a shortage of talent to fill the role. For example, if a business plans to expand, workforce planning can help in identifying the types of employees needed to make the expansion possible.
Benefits of Strategic Workforce Planning
In the subsequent paragraphs, the benefits of a strategic workforce planning are explained. Take a look:
1. Supports the budgeting process
The first ever benefit of implementing a strategic personnel planning is it supports the overall budgeting process of the organization. As companies begin to grow, they need to work on their workforce power along with the budget. In this case, if strategic workforce planning is implemented at the right time, the organization’s budgeting process becomes easier to manage.
2. Fast procurement of labour
If workforce planning is implemented correctly, it can help diagnose the problems within the organization very easily. If there is a shortage of labour or skills in the organization, then workforce planning will come to the rescue and that too without affecting business.
3. Helps in employee retention
Besides procuring new talent during shortages, workforce planning can actually go a step ahead in employee retention. Since employee retention is one of the most significant challenges faced by employers these days, implementation of workforce planning has become all the more important. If there is high turnover in a particular department, workforce planning can help businesses assess the reason behind it and therefore retain the employees.
4. Serves as a mechanism for identifying critical talent
When implemented in a proper way, human capital management can be used as a suitable tool for identifying key talent within the organization itself. With proper integration, workforce planning promotes communication between business units and human resources, and subsequently the ability to determine and retain the most capable talent.
5. Help identify skill gaps in workforce
Capacity to identify the skill gaps in a labour force is essential for any organization. It is where workforce planning come to the performance. Once the HR implements workforce planning in the right way, it can help identify skill gaps in the workforce to a great extent. It can further enhance productivity at workplace.
Realizing the perks of strategic workforce planning is actually easier said than done. It not only takes time but also training, transformational technology and sponsorship from senior management level for proper implementation. However, once implemented and rolled out, workforce planning can be highly beneficial for an organization.