Building Resourcing Capability 2012 Workforce Planning Grant Weinberg Director EMEA Talent Acquisition
Gilead Storyboard25 Years in 25 seconds…………… Gilead Sciences’ four-in-one HIV pill has been given the thumbs up by an FDA advisory group. Revenues 2011 – c.$8.4b Revenue : Employee 2011 WW = $1.8m 15 Marketed Products Revenue : Employee EMEA 2011 = $3.3m Avg. annualised hiring c.275 Multi-channel sourcing: – Direct 50% – Indirect 50%Most Valuable Employees Market cap value per employee: $9,415,075
Gilead WFP Drivers• Maturing away from incremental hiring• Capability hiring against the Business objective• Reduce reactive hiring• Greater appreciation of the Talent pools (int & ext)• Business Stakeholder alignment and up skilling: – Business Leaders – Finance Business Partners – HR Business Partners
Workforce planning is the bridge frombusiness plan to talent management plan Annual Business Strategy / Business Plan What are the workforce implications of the business strategy? Workforce planning Understand your workforce through metrics and analytics Workforce plan Integrated Talent Management Plan Talent Acquisition Learning & Development Succession Planning Compensation Planning Performance Management Leadership Development 6
Workforce Planning Process FrameworkGilead’s initial focus was on Phases 1 and 2 Phase 2: Phase 3: Phase 4: Phase 5: Phase 1: Project Future Project Future Identify the Gaps Manage Gaps and Define objectives Demand Supply and Action Plan Monitor Workforce Implement Understand the Identify the actions current Determine workforce gaps identified in the workforce future that will inhibit workforce plan issues and Determine key workforce success on and gather data on workforce supply based executing the continuously the business requirements to on current business monitor the plan/strategy to execute on workforce and strategy and workforce to determine future business anticipated determine an assess workforce strategy changes to the action plan for program direction and workforce addressing the effectiveness talent gaps and the need to implications revisit the plan Process oversight and change management 7
Workforce Planning Maturity ModelThere is value in workforce planning no matter where you are on the maturity model Advanced • Advanced analytics: • Tying workforce Intermediate metrics to business outcomes • Alignment with human capital strategy • Workforce projections • Cost optimization Basic • Critical role segmentation • Skills evaluation and • Movement analysis and career paths redeployment • New hire analysis and strategy • Job analysis and redesign • Understanding the current workforce: • Intermediate business demand planning: • Advanced business demand • Headcount • Defining workforce implications of planning: • Turnover business plan • Process level analysis • Simple metrics (age, service) • Business driver analysis • Time study • Simple demand planning: • Quantification of business driver • Complexity factors • Headcount growth ratios • Productivity and efficiency • Gap analysis analysis • Headcount target • Workforce mix evaluation • Some trending analysis Data analysis required 8
Advanced WFP – Segmentation Talent Segment and Value Potential Strategic Action Strategic Critical to driving long-term competitive Build advantage, with specialized skills or Roles that knowledge affect the Core strategy Increased investment The “Engine of the Enterprise,” unique to Protect the company and core to delivering on its products and/or services Requisite Cannot do without, but whose value could be Streamline/ delivered through alternative staffing Outsource Roles strategies (e.g. off-shoring, outsourcing, affected replace w/technology) Non-Core by the strategy Talent whose skill sets no longer align with Redirect the company’s strategic direction Source: The Conference Board “Strategic Workforce Planning, Forecasting Human Capital Needs to Execute Business Strategy”; via Corning Incorporated9
Gap Management Using the Tools: The tools provided can be modified/updated to reflect your individual needs within your respective businesses/functions. They are provided to help guide you through conversations with your client to better align the talent strategies to the business strategic needs Keep an eye on the HIPO’s within your business/function even if the roles•Build they are currently in will no longer be needed in future years. Help to build development plans to mold them into the new roles defined through the demand exercises•Buy Watch for what is going on with your competitors and stay close to the external talent pipelines to be able to bring on talent timely When roles become vacant – determine if they are part of the future•Borrow demand. If not, consider short-term strategies such as using temporary help or contract labor to fill the immediate gap Closely monitor performance management to manage the attrition in a•Bounce way that frees up headcount to accommodate the identification/training of new talent needed for future demand Review the organizational structure components (management structure,•Balance reporting relationships, span of control, compensation, capabilities & knowledge needed, etc.) to ensure the alignment with the future demand needs
Workforce Planning Discussion Framework AKA “The 9 Questions”The following questions will help to guide your initial discussion with your client. Although you may not address allof the questions, you should leave the conversation with an understanding of strategic business objectives andwhat might impede the achievement of these objectives.QuestionsWhat are the key strategic objectives we needto achieve over the next 1 to 3 years?What are the success factors that will make orbreak this?What obstacles do we face?What are our strengths and weaknessescompared to our competitors?What are the 3 to 5 critical role and orcapabilities required to achieve objectives?Do we have the right people with the rightskills in the right roles? (e.g., refer to talentmaps and succession plans)Is our headcount allocated efficiently andoptimally? (e.g. Span of control, etc.)What are some potential barriers?What roles & capabilities will become lessimportant? 12
HR Metrics Labor [Organization] Departing Market Headcount: # Turnover: Employees Org Dept Hired: # Termed: # Overall Time to Hire: # Voluntary Primary reasons for days (versus # days Involuntary departure: for rest of company) Open and Filled Requisitions: # -Reason #1 -Reason #2 Budgeted Headcount: # WHERE TO PULL THE METRICS System FolderReport Description Owner Report Name Selection EmploymentHiring YTD HRBP Time Trend of Headcount by Location , Job Family, Department Tree Demographics Provided by TalentTime to Hire TA N/A Acquisition EmploymentHeadcount HRBP Time Trend of Headcount by Location , Job Family, Department Tree DemographicsTurnover number year-to-date (top Employment HRBP Turnover by Dept Tree, Length of Service2-3 reasons) DemographicsTurnover % (voluntary and Employment HRBP Time Trend of Headcount by Location , Job Family, Department Treeinvoluntary %) Demographics Current Requisitions - Number of Current Requisitions byOpen requisitions HRBP Talent Acquisition Dept/Location/Grade Current Requisitions - Number of Current Requisitions by 13Filled requisitions HRBP Talent Acquisition Dept/Location/GradeBudgeted Headcount vs Actual HRBP Total Workforce Total Workforce Actual Vs Forecast
Insights from the Gilead Journey• Ensure all stakeholders have a common understanding of what Workforce planning is and define objectives before initiating.• Education before action!• HRBPs were all doing Workforce planning activities on a daily basis in their roles, to varying degrees.• Assess competence, address learning needs early.• We needed to formalize and package these activities into a common methodology – Workforce Planning (WFP).
Insights from the Gilead Journey• Does your organisational culture support WFP?• WFP should be an embedded business process and not a HR initiative!• Use analytics to build the story line.• No big bang - Pilot a key business area/group, take the value creation to determine additional business needs.• Coordinate with business / finance planning and talent management cycles.• Remember – Workforce planning should support the Business objective or you have lost the value of the Business process.