Strategic Workforce Planning Builds a Better Business


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Strategic Workforce Planning Builds a Better Business

  1. 1. Strategic Workforce Planning Builds a Better Business Hewitt’s Strategic Workforce Planning Consulting Your partner from strategy to implementation of practical and targeted workforce planning solutions Many workforce challenges in organizations stem from a n Rising quality control problems because retirements aren’t fundamental disconnect between the supply of talent and properly anticipated and addressed to ensure effective the demand for talent—causing significant gaps between the transitions. people and skills you have and those you need. Significant These are just a few examples to highlight the importance of gaps between talent supply and demand create workforce identifying and avoiding talent gaps that significantly impact shortages (or excesses) at the job, functional, geographic, business performance. or enterprise levels. These gaps can have negative business impacts that include: Workforce Planning Defined At the most basic level, workforce planning is a process to n Declining sales because key sales or delivery skills are identify and predict gaps between talent needs and available unavailable or lacking; talent supply and create action plans to address those gaps. n Shrinking operating margins due to the increased labor From a strategic perspective, workforce planning should costs of an aging workforce or stiff competition for a be conducted enterprise-wide. At the same time, talent limited talent pool; requirements and availability (both shortfalls and surpluses) n Lowering productivity due to slow adaptation of must be evaluated at the level and time frame required to the current talent pool to new or changing business execute business strategy—e.g., near term (12–18 months) circumstances; and to longer term (3–5 years) by location, job, career level, function, etc. Hewitt’s Strategic Workforce Planning offering is designed to help organizations: Build an approach, methodology, and Forecast workforce needs to anticipate Develop a talent management strategy tools that support workforce planning on and prioritize talent gaps based on both and an action plan to close critical talent an ongoing basis at the level needed to internal and external factors driving talent gaps considering business strategy and execute business strategy supply and talent demand performance goals
  2. 2. Approach | From planning through implementation and ongoing management, Hewitt focuses on identifying and addressing critical talent gaps that drive business results. Business Strategy and Scenario Modeling Demand Analysis Labor Gap Talent Market Analysis Planning Internal Analysis Supply Analysis Predictive Workforce Analytics Business Strategy and Scenario Modeling: An effective Gap Analysis: Not all talent gaps are the same. Hewitt workforce plan hinges on an objective articulation of the helps clients focus on those gaps that are most likely to links between business strategy and workforce requirements. drive the success of the business strategy and operating Using our proprietary methodology, Hewitt helps clients performance—highlighting gaps based on key criteria translate business objectives into core workforce including size, cost, timing, location, and impact. We requirements and critical roles needed to drive the business also provide technology support to build an ongoing and strategy, including design of alternative economic, business, sustainable workforce planning platform for our clients, and labor market scenarios to evaluate the overall degree of which can include the implementation of a direct-access, risk in workforce planning. online tool to track progress. Demand Analysis and Internal Supply Analysis: Hewitt Labor Market Analysis: Hewitt has a global database of offers varied analytic techniques and data to support primary and secondary data to support workforce planning headcount and cost projections. Our methods can include: decisions, including labor market and demographic analysis to identify availability, quality, quantity, and wage pressures n Facilitated workshops to educate and train clients on core for external talent supply by job, skill set, location, etc.—today components of talent analysis; and in the future. n Business analysis and management interviews to identify Talent Planning: Hewitt works with clients to integrate drivers of labor demand; gap analysis and labor market research to develop n Detailed historical, organization-specific employee data recommendations for talent acquisition, development, analysis (for roles, competencies, locations, career engagement, performance, and retention. We focus on those levels, etc.); interventions and action plans that are measurable and address high-priority talent gaps. We also work with clients n Surveys and other employee sensing; and to implement these solutions, providing ongoing process and n Proprietary and public benchmarking and other “best change management support, as needed. practice” reviews.
  3. 3. Predictive Workforce Analytics: Sometimes traditional potential solutions with or without the benefit of organization- talent supply and demand analysis is neither feasible nor specific data. This analysis leverages Hewitt’s many years of enough due to changing conditions or internal data issues. talent data—covering more than 20 million people—providing Hewitt’s capabilities support clients with robust, fact-based proprietary data on demographics, pay, benefits, turnover, labor analytics (including Hewitt’s Human Capital Foresight™ etc., to ensure informed talent decisions. capability) to identify and target complex workforce risks and Results | Hewitt’s approach is designed to guide clients step by step through a workforce planning process. We bring experience, methods, data, and tools to accelerate progress, manage costs, and identify how to source, develop, and transition critical talent effectively. Our flexible, yet comprehensive, process: Hewitt helps Our data and research: Hewitt has collected workforce data clients translate their strategic priorities into an actionable since its inception in 1940. Today, we leverage both primary plan to deliver business results. Hewitt’s ability to deliver and secondary data sources to provide our clients with a on any step of a workforce planning process—and to do holistic view of labor markets around the globe. We also so globally—reflects our flexible and scalable approach to continuously track how global economic and demographic addressing distinct client needs. We’re able to meet clients trends affect the ability of organizations to attract and retain where they are in their own workforce planning efforts and “fill talent. In addition, our Human Capital Foresight research in the blanks” with the right solution. further differentiates our value proposition, allowing us uniquely to identify employee flight risk and broader labor Our depth and breadth of experience: Hewitt has significant risk based on our proprietary data representing more than experience working with clients around the globe to build 20 million individuals. In fact, we may already have the data effective workforce planning processes and protocols. you need to support your workforce planning efforts, which Our clients span industries including: aerospace/defense; expedites the process. energy/utilities; health care; high-technology; insurance; manufacturing; pharmaceuticals; supply chain/distribution; Our technology: Hewitt’s services are supported by a and telecommunications. Our work with clients ranges from robust technology platform, enabling us to provide clients business-unit headcount planning to predictive analytics on with a configurable, Web-based solution. Our tools allow talent risk to enterprise-wide workforce plans and strategies. organizations to track progress on an ongoing basis, rather than as a one-time event, both enterprise-wide and at a detailed job level. Depending on client need, customized technology solutions are also available.
  4. 4. Ask yourself | How does your organization “stack up” when it comes to strategic workforce planning? Does your organization need workforce planning? Are you following “best practices” for workforce planning Do you know how your workforce will meet the business needs of Is your approach integrated with business planning and the future (e.g., to support growth expectations, expansions into budgeting cycles (e.g., outcomes from workforce planning can new markets, service/product development)? influence business planning and budgeting and vice versa)? Do you know if you currently have the capabilities and skills to Is your approach systemic (e.g., do you look at both individual support your business strategy? job needs and how individual job information “rolls up” to the organizational level to link to business budgets and performance goals)? Is your workforce aging or are you concerned about an upcoming Is your analysis of both current and future job and capability “wave of retirements”? requirements based on objective data analysis (versus perceptions)? Are you experiencing turnover that is too high or too low? What Does your workforce forecasting methodology include alternative about for key groups of employees? projection scenarios—to consider changing business, economic, and labor market conditions? Are you having difficulty finding and/or attracting needed talent? Do you include external labor data and analysis when evaluating Do hiring managers or others perceive the recruitment process to and ranking potential talent gaps? be slow or ineffective? Are line managers or others worried about having an insufficient Does your approach cover implications and authority for action or undefined talent pipeline (beyond the leadership level)? with regard to talent management (e.g., recruiting, rewards, performance management, training, and development)? Have you set diverse workforce goals but lack a plan for how to go Is your approach easily replicable over time (e.g., do you have about meeting those goals? methods and supporting technology that allow for consistent decision-making criteria and outcomes)? About Hewitt Associates For more than 65 years, Hewitt Associates (NYSE: HEW) has provided clients with best-in-class human resources consulting and outsourcing services. Hewitt consults with more than 3,000 large and mid-size companies around the globe to develop and implement HR business strategies covering retirement, financial, and health management; compensation and total rewards; and performance, talent and change management. As a market leader in benefits administration, Hewitt delivers health care and retirement programs to millions of participants and retirees, on behalf of more than 300 organizations worldwide. In addition, more than 30 clients rely on Hewitt to provide a broader range of human resources business process outsourcing services to nearly a million client employees. Located in 33 countries, Hewitt employs approximately 23,000 associates. For more information, please visit Human Capital Foresight™ is a trademark of Hewitt Associates, LLC. © 2008 Hewitt Associates LLC PM-1035-001-EN