The document outlines best practices for strategic workforce planning (SWP), including defining SWP and diagnosing current practices. It recommends a 6-step SWP process of scanning, profiling, analyzing, developing, implementing, and controlling. Research shows that while many companies have some workforce planning, few take a strategic, long-term approach aligned with business strategies. The presentation provides guidance on applying an effective SWP process to gain a clear view of talent needs and ensure workforce alignment with organizational strategy.
1. BEST PRACTICE STRATEGIC
WORKFORCE/TALENT PLANNING
(SWP)
CHARLES COTTER
20 NOVEMBER 2014
SANDTON CONVENTION CENTRE
2. SCOPE OF PRESENTATION
Defining StrategicWorkforce Planning (SWP)
Diagnosis of current SWP practices
Research-based reality check
Business Case: Strategic imperative and alignment of
SWP
Applying the 6-step SWP process
9. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR EFFECTIVE SWP
#1: Aligned with organization’s strategic business plans and priorities.
#2: Future-focused, adopting a strategic, medium to long-term forward-looking
approach.
#3: Pro-active, sensitive and responsive to (internal and external)
environmental change and trends.
#4: Provides accurate and reliable (clear view) talent
planning/management information e.g. available core competencies;
scarce skills; critical jobs and employee segments and talent gaps.
#5: Collaborative, well coordinated and partnering effort (HRM has co-opted
business partners e.g. line managers to the process).
10. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR EFFECTIVE SWP
#6: Integrated (bundled) with other HR value chain processes e.g.
Recruitment, Succession Planning, Retention and Leadership Development.
#7: Generates meaningful business intelligence which shapes, informs and
influences business planning and supports strategic decision-making.
#8: Integrates both scientific (HRM metrics, predictive analytics and
strategy maps) with artistic (planning) principles.
#9: Dynamic - regularly and systematically monitored, reviewed, evaluated
and adapted (committed to continuous improvement processes).
#10: Yields a positive ROI, with tangible/demonstrable outcomes and
impact i.e. creates sustainable HCM competitive advantages
12. RESEARCH-BASED (BERSIN) REALITY
CHECK
Although 92% of companies have some level of workforce planning, only 21%
take a strategic, long-term approach to addressing the talent demand, talent
supply and the actions necessary to close the gap between the two.
Only 11% of organizations have currently reached Level 3 of Maturity.
Only 10% have reached Level 4.
Although best-practice companies align workforce planning as an integral part
of their business and financial planning, 67% of companies at every level still
conduct workforce planning on an “as-needed” basis.
Only 25% of workforce plans are effective at helping business leaders forecast
revenue and operating budgets.
Only 27% of workforce planning processes are conducted by recruiting and
staffing departments . The majority of workforce planning processes are owned
by individual business leaders – so they are disjointed from recruiting and even
HRM.
13. THE STRATEGIC IMPERATIVE OF
WORKFORCE PLANNING
“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)
“A company’s employees are its greatest asset and your people are your
product .” (Richard Branson)
19. FUTURING
"Futuring is the field of using a systematic process for thinking about,
picturing possible outcomes, and planning for the future. Futurists are
people who actively view the present world as a window on possible
future outcomes. They watch trends and try to envision what might
happen.“ (Kirkwood, 2011)
Futuring is a broader concept than the forecasting traditionally done
in Workforce Planning and enables organizations to look at the future
in four different ways (Cillie-Schmidt, 2013):
The possible future - what could happen?
The plausible future - what could realistically happen?
The probable future - what is likely to happen?
The preferred future - what we want to happen?
20.
21. FORECASTING HR DEMAND
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
Preferred Scanning tools –”What If” and Scenario Planning
22. MEASURING CURRENT SUPPLY
Assess the current HR capacity of the organization by means of
the Skill inventories/audits method
The knowledge, skills and abilities of your current staff need to be
identified
Employee experience, education and special skills
Certificates or additional training should also be included
A forecast of the supply of employees projected to join the
organization from outside sources
HRM indicators, metrics and indices e.g. turnover rates
28. LEADERSHIP LESSONS: “TAKE-AWAYS”
– SWP AND ALIGNMENT
SWP – getting it “right”
HRM requires a clear view
The strategic imperative of SWP
Alignment of SWP and business strategy
Application of best practice principles
Application of 6-step SPADIC SWP process
29. CONTACT DETAILS
CHARLES COTTER
084 562 9446
charlescot@polka.co.za
LINKED IN
TWITTER: Charles_Cotter