What is Workforce Planning? Workforce planning benefits and strategies explained

Planning talent needs in line with a business’s objectives makes strategic sense. By taking a holistic view of available skills - both within the organisation and beyond - talent management professionals can ensure their workforces operate at maximum efficiency.

However, according to research from Gartner, just 21% of HR leaders believe their organisations are effectively using talent data to shape talent acquisition and recruiting strategies, improve employee engagement, and inform other business decisions.

So, what is a workforce planning strategy that promotes efficiency?

And how can a business benefit from a workforce planning strategy? Here's what you need to know about workforce planning.

What is workforce planning?

Workforce planning is the process of ensuring that the right people, with the right skills, are in the right place at the right time to deliver a business’s commercial strategy. Today, effective (and even advanced) workforce planning is a feasible talent management strategy for any size company, thanks to the widespread availability of advanced HR and talent analytics tools.

LinkedIn reports that at least 19% of companies have adopted HR analytics to plan workforces more effectively, and 12% have dedicated HR analytics roles. However, for many HR leaders, the concept of workforce planning still seems daunting.

The good news is that applying analytics to answer critical HR questions is a lot simpler than you may imagine.

For example, by calculating the percentage of employees who are eligible to retire in the next five years, organisations can ensure that their talent pipeline is ready to fill these gaps accordingly. And that’s just one basic example.

Why is workforce planning important?

Workforce planning is absolutely integral to wider organisational strategy. Now that every HR team, in theory, has access to huge volumes of valuable data, they can use this data to predict the behaviours of employees and market demand fluctuations. This means HR teams can plan to overcome forecasted skills gaps and bring in external expertise to bolster growth and push into new markets where they can see it will be needed.

If there is enough in-depth data, workforce planning can also show where a surplus of talent is available. This can help businesses to make better informed decisions about where skills need to be redeployed, or which geographies to target or avoid.

Workforce planning can also be used to model future possible commercial scenarios and plan the best reaction, in effect helping to future proof an organisation - an invaluable asset in this increasingly unpredictable, fast-paced, globalised world.

By digitally tracking the availability of skills, both within the business and externally in the market, leaders can:

Map where permanent workforces can be deployed most effectively

See where automation can pick up process-driven tasks that reduce productivity

Identify the skills they are lacking

Determine if skills gaps can or should be filled on a full-time or contingent basis.

What are the key components of workforce planning?

The key components of workforce planning include identifying current and future talent needs, analysing existing workforce capabilities, forecasting potential skill gaps, and developing strategies to recruit, retain, and develop employees to meet organisational objectives.

By identifying short and long-term strategic priorities, businesses can build a robust workforce plan to enable HR leaders to target inefficiencies, see where people can and should be moved within the organisation, and identify relevant strategies for focused people development.

The key is to keep business goals front and centre of every plan. Where are you now? And where is your target destination? Any business is only as good as its people, and by pinpointing the gap between present and future talent needs, organisations can ensure they are equipped to meet their business objectives.

Of course, there is no exact science to predicting future workforce needs: Some of today’s most in-demand roles didn’t even exist a decade ago, and it’s not only technology, although the rise in demand for cybersecurity and AI skills is front and centre.

For example, the growth of more flexible working since the pandemic has led to the role of Chief Remote Work Officer – responsible for hybrid and remote work strategy and management.

Over 270,000 jobs have been created in the UK in its transition to green energy technology, and with government goals of clean sources producing at least 95% of Great Britain’s generation, these will grow. Even jobs such as drone operators, developers and engineers are growing in demand as they become increasingly used in defence, security, construction and emergency services.

It is safe to assume that many of these skills and roles will only continue to grow in prominence. Having a policy of assessing potential recruits for - and hiring based on - core competencies, rather than strictly on specific experience, can also be an effective strategy.

The role of learning and development in workforce planning

When it comes to closing workforce gaps, the argument for offering learning and development opportunities to existing teams, rather than automatically seeking external hires, is a convincing one. Redeploying staff where a business needs talent most is much more efficient than hiring and firing as markets ebb and flow, and staff retention should be a top priority for every company.

Another approach, often summarised as "Recruit, Train, Deploy," ensures organisations not only attract the right talent but also equip them with necessary skills and strategically position them where they are most needed within the business.

The "Recruit, Train, Deploy" model is a workforce planning strategy where organisations first attract and hire suitable candidates, then provide them with targeted training, and finally assign them to roles or projects where their skills are most needed within the business.

At a time when niche talent scarcity and high-demand skills shortages are impacting a large number of sectors, identifying overlaps in ability and mismatches in skills allows companies to close gaps in a sustainable way. Retraining, upskilling, and redeploying existing talent where possible or seeking alternative talent pools to train for an organisation’s specific needs promotes a positive corporate culture that is up-to-date in terms of skills and knowledge.

How can I use technology for workforce planning?

Today’s talent technology can provide reliable data around which employees are suitable for re-skilling, which are likely to move on over time, and what talent is likely to be available in the external market. This helps predict gaps within the workforce that may open and close as market demand fluctuates.

This type of data can also be used to implement a policy of growing your own internal talent, which can subsequently help to close projected gaps in the future.

Can workforce planning help with fluctuations in demand and turnover?

A great workforce plan allows a business to flex along with peaks and troughs as demand dictates, as well as undertake robust succession planning. One common misconception about a successful workforce plan is that it is rigid and set in stone. In fact, the opposite is true.

The best strategic workforce plans are dynamic, shifting, and evolving in line with both changing organisational objectives and market conditions. An effective plan must be adaptable and almost constantly fine-tuned in order to stay in line with market demand. Covid-19, and associated restrictions on business activity, is a perfect example of why firms must always plan for the unexpected.

Using workforce planning to managing changing workforce demands

An example of how Comensura has used workforce planning to manage changing workforce demands is within the Social Care sector. The UK has seen a sharply increased demand for Educational Psychology (EP) assessments as more Special Education Needs are identified, putting strain on local authorities due to recruitment issues, service disparities, and assessment backlogs.

As a result, local authorities have faced legal risks for failing to obtain EP advice during statutory assessments, including tribunals, ombudsman rulings, and financial penalties.

Comensura’s services procurement solution addressed these issues by enabling local authorities to access proven EP specialists through a bespoke bidding process on technology platform c.net. Local authorities select partners based on historic performance data and supplier proposal assessments, at fixed prices and payment is contingent on satisfaction with completed work.

This workforce plan means that local authorities now have a clear process for quickly procuring EP services, enabling them to respond proactively to future backlogs, remain compliant, and support young people in the area.

Read the full case study.

What are the benefits of workforce planning?

Mapping skills across the workforce, and using data to drive talent management decisions, can enable a business to accomplish its goals and strategic plan. Analytics tools can help talent managers understand why and when certain individuals, both inside and outside their business, are likely to make career moves. This leads to more effective recruitment strategies and an ability to pinpoint potential areas of concern.

There is no doubt that strategic workforce planning is key to enabling sustainable organisational performance.

Find out how Comensura can help with workforce planning

Ultimately, a workforce should be built to boost output, reduce costs, and increase productivity - while also being adaptable to the needs of the future.

By balancing talent supply with skills demand, organisations can ensure their teams perform to maximum efficiency, without skills gaps (or surpluses) so that they are future-fit and firing on all cylinders.

Contact us today to find out how our specialists can help your organisation plan for future workforce needs and meet them in the most efficient and sustainable way.