Strategic Workforce Planning: A Comprehensive Guide
Labor Market Analysis
External Labor Market Study
The department must conduct frequent studies of the external labor market to determine recruitment sources after personnel selection. This research should analyze current labor market trends.
Key aspects to consider include:
- Population aging
- Migration flows
- Female unemployment and workforce integration
- Skill levels
These aspects are crucial for effective workforce planning.
Organizational Planning and Scale
Managers and company leaders should plan for organizational expansion and consider potential downsizing or even complete termination of activities. Ideally, organizations should identify short-term, medium-term, and long-term workforce plans.
Factors Involved in Workforce Planning
HR specialists and line managers often perform simple mathematical calculations related to the organization’s workforce. For example, if the workweek is 40 hours and the organization has 1,000 employees, the total number of person-hours worked per week is assumed to be 40,000. However, employees don’t always work exactly as expected due to:
- Tardiness
- Absenteeism
- Sick leave
- Vacation time
Therefore, workforce planning must consider:
- Absenteeism
- Employee turnover
- Changes in workforce skills
Absenteeism
Employee absenteeism causes distortions in workforce volume and availability. Absences include incomplete workdays or delays in arriving at the workplace. Absenteeism is influenced by an individual’s professional capacity and work motivation. The frequency and duration of absences are closely related to job satisfaction. Managing absenteeism effectively offers benefits, as each reduction can lead to significant savings.
Employee Turnover
Employee turnover results from employees leaving and being replaced. There are two types of turnover: employee-initiated and organization-initiated.
Employee-initiated turnover depends on two perceptions:
- The employee’s level of job dissatisfaction
- The attractiveness of external job alternatives
Organization-initiated turnover occurs when the organization decides to terminate employees, either to replace them with individuals better suited to its needs or to reduce its workforce. When dismissal is necessary, organizations should use criteria discussed and negotiated with employees and unions to minimize negative impacts on morale and loyalty.
Changes in Workforce Skills
Factors that significantly alter workforce skills include:
- Global changes
- Technological advancements
- New organizational structures
- New products and services
- New work processes
Addressing Skill Deficiencies
Due to these changes, many workforce segments face skill deficiencies for performing tasks required in the modern era.
Impact of Skill Gaps
Lack of competency causes significant losses for organizations through:
- Substandard work
- Low productivity
- Increased accidents
- Frequent customer complaints
Investing in Training
Addressing skill gaps and correcting deficiencies requires substantial resources and organizational commitment to employee training.
Key Workforce Planning Decision
A fundamental decision in workforce planning is whether to fill positions with internal or external candidates.
Considerations Before Determining Staffing Needs
Before determining staffing needs, consider the following:
- Expected product or service demand
- Projected turnover and absenteeism rates
- Employee quality and skills
- Decisions to improve quality or enter new markets
- Available financial resources
Forecasting Workforce Needs and Availability
Forecasting Personnel Needs
This involves estimating the number and type of employees the organization will need in the future to achieve its objectives.
Forecasting Personnel Availability
This determines whether the company can provide employees with the necessary skills from internal or external sources.
Techniques for Predicting Workforce Demand and Needs
Several methods, ranging from simple to complex, can be used to determine an organization’s personnel needs. However, estimations are not completely accurate, and the obtained values are approximate.
Importance of Workforce Planning
When organizations face mergers, new plant locations, staff reductions, or facility closures, effective workforce planning is crucial for navigating these critical situations.
Causes of Personnel Demand
Personnel demand is influenced by various factors, including:
- Environmental changes (external causes)
- Organizational changes (internal causes)
- Changes in the labor force
