3. DEFINING STRATEGIC WORKFORCE
PLANNING (SWP)
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.
5. BEST PRACTICE GUIDELINES FOR
EFFECTIVE SWP
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
6. 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)
7. PURPOSE OF SWP
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
9. SWP – IMPROVEMENTS AND
COMPETITIVE ADVANTAGES
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
14. 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
15. MEASURING CURRENT SUPPLY
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 skills
Certificates 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