Workforce PlanningPeter HowesVice President, SuccessFactorsphowes@successfactors.com© Copyright 2011. All rights reserved....
SuccessFactorsWorkforce PlanningPrinciples                     2
Workforce Planning5-step model                     3
SuccessFactors WorkforcePlanning Framework                           4
What is Demand Forecasting? Estimating the demand for the number and type of employees  for each scenario (how many and w...
Workforce Numbers Forecasting: Common TechniquesQualitative Nominal Group Technique Delphi Technique Structured Intervi...
Timeframe of WFP Forecasting   Forecasting is not an exact science.   Forecasting is based on what we know from past exp...
Supply ForecastingWorkforce analysis External supply analysis Current workforce profile analysisSupply forecasting    F...
Matching Supply & Demand     When supply forecasts are matched with estimated demand requirements, the     projections pro...
Findings from recentSuccessFactorssurvey and Bestpractices in StrategicWorkforce Planning                         10
Finding 1Implementing workforce planning leads to the improvementof a number of human capital and financial metrics.   Or...
Finding 2Despite (or perhaps because of) difficult economicconditions, investments in workforce planning areexpected to in...
Finding 3Leading organisations are far more likely to adjust theirworkforce plans in response to changing economicconditio...
Finding 4Leading organisations are far more strategic in theirapproach to recruitment, retention, and other key talentmana...
Finding 5Leading organisations primarily invest in workforce planningas a tool to support specific business strategies – n...
Finding 6Leading organisations are far more likely to implementspecific talent management initiatives as a result of their...
Finding 7Leading organisations are far more likely to use advancedtechnologies in support of their workforce planning effo...
Finding 8Leading organisations prioritise a different, more businessrelevant, set of competencies needed for those involve...
Finding 9Leading organisations continually push to improve thebusiness relevance of workforce planning – even to the point...
Personalobservationsin WorkforcePlanning               20
What workforce planning is not• A commitment to future decisions• Something that is done once and forgotten about – ―a box...
Evaluate the current workforce to identify potential risks Segment-specific talent reviews form an important part of dema...
With changes to the economy, it is critical to create future scenarios Scenarios are a framework for managing change and ...
Workforce Planning is a critical tool in overall Talent Management Career Management - Sleeper in Workforce Planning:   –...
Workforce planning is increasingly about risk managementWhere are the gaps In numbers between demand and supply? In skil...
APQCStrategicWorkforcePlanningResearch Findings                    26
Research FindingsFinding #1Workforce Planning is Best Managed Through a Centre of ExcellenceFinding #2Establishing a Workf...
Research FindingsFinding #6The Focus of Workforce PlanningFinding #7In Order for Workforce Planning to Be Successful, Orga...
Research FindingsFinding #10Leveraging Workforce Planning and Analytics Software Enables the WorkforcePlanning ProcessFind...
Questions            30
Workforce PlanningPeter HowesVice President, SuccessFactorsphowes@successfactors.com© Copyright 2011. All rights reserved....
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Peter Howes - Workforce Analytics and Planning

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Apresentação de Peter Howes, vice-presidente SuccessFactors, sobre Workforce Planning. O Planejamento da Força de Trabalho é uma metodologia que permite à organização analisar seus objetivos de negócio para os anos futuros e, com isso, identificar os perfis e número total de talentos de que precisará para atingi-los.

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Peter Howes - Workforce Analytics and Planning

  1. 1. Workforce PlanningPeter HowesVice President, SuccessFactorsphowes@successfactors.com© Copyright 2011. All rights reserved. Sep 15, 2011
  2. 2. SuccessFactorsWorkforce PlanningPrinciples 2
  3. 3. Workforce Planning5-step model 3
  4. 4. SuccessFactors WorkforcePlanning Framework 4
  5. 5. What is Demand Forecasting? Estimating the demand for the number and type of employees for each scenario (how many and what sort of people will we need?) Generally focuses on critical job roles for each of the agreed scenarios Many different techniques Requires expert knowledge and experience 5
  6. 6. Workforce Numbers Forecasting: Common TechniquesQualitative Nominal Group Technique Delphi Technique Structured Interviews Focus GroupsQuantitative Regression Analysis Decision Analysis Forecasting (DAF) Staffing Ratios/ Productivity Measure 6
  7. 7. Timeframe of WFP Forecasting Forecasting is not an exact science. Forecasting is based on what we know from past experience and what indicators we have as to the directions for the future. 100%Degree ofConfidence inForecast 0 1 2 Timeframe (Years) 7
  8. 8. Supply ForecastingWorkforce analysis External supply analysis Current workforce profile analysisSupply forecasting Forecast supply based on workforce age and turnover Incorporating transfers and promotions patternsAdvanced modeling Modeling internal movement and progression 8
  9. 9. Matching Supply & Demand When supply forecasts are matched with estimated demand requirements, the projections provide a simple indication of workforce number/skill surplus or deficit. The Demand and Supply Summary Table below is a hypothetical example Net Demand Net Supply Difference CurrentOccup. W’Force 2 yrs 5 yrs 2 yrs 5 yrsGroup (FTE) 1yr 1yr 2yr 5yr 1yr S1 S2 S1 S2 S1 S2 S1 S2Managers 19 19 19 22 15 17 18 16 11 -1 -3 -6 -4 -6Engineers 123 123 120 150 105 115 102 77 9 -21 -43 -73 -96 -106Scientists 117 120 120 120 115 115 95 72 12 -25 -48 -48 -103 -103Para-prof. 294 290 280 312 260 280 266 241 191 -24 -39 -71 -69 -89Admin/ 56 55 50 40 40 25 54 52 46 -1 +2 +12 +6 +21ClericalWages 193 190 135 160 60 80 189 184 173 -1 +49 +24 +113 +93TOTAL 802 797 724 804 595 632 724 642 442 -73 -82 -162 -153 -190 9
  10. 10. Findings from recentSuccessFactorssurvey and Bestpractices in StrategicWorkforce Planning 10
  11. 11. Finding 1Implementing workforce planning leads to the improvementof a number of human capital and financial metrics. Organisations are using a variety of methods to measure the effectiveness of their workforce planning. Compared to Emerging or Lagging organisations, Leading organisations tend to disproportionately focus on five outcomes: – Accuracy of forecasting efforts – both demand and supply – Reduction in termination and attrition rates – Reduction in talent gap, especially for critical positions – Reduction in time-to-fill, especially for critical positions. Key financial metrics that can be linked to workforce planning efforts, such as revenue per FTE and profit per FTE. 11
  12. 12. Finding 2Despite (or perhaps because of) difficult economicconditions, investments in workforce planning areexpected to increase in the next 12 months. Investments in workforce planning are expected to increase in the next 12 months: – 17% of organisations expect significant increases – 31% expect marginal increases. 100% of Leading organisations indicate workforce planning resourcing is either expected to grow or remain the same. Do you have the necessary workforce planning expertise in your organisation? The risk implication of this finding is that there will be a shortage in people with the experience, competencies and capabilities to conduct workforce planning. 12
  13. 13. Finding 3Leading organisations are far more likely to adjust theirworkforce plans in response to changing economicconditions. 74% of Leading organisations have revised their plans due to the global economic crisis; 67% of Lagging organisations have not. Indicative that the workforce plan is a true working strategy rather than just a report that sits on the shelf. 13
  14. 14. Finding 4Leading organisations are far more strategic in theirapproach to recruitment, retention, and other key talentmanagement initiatives Organisations that place a complete freeze on recruitment are most likely to be Lagging organisations, with only 3% of Leading organisations having done so. Leading organisations use workforce planning to be much more strategic in their approach to recruitment, using challenging economic circumstances and favourable labour markets as a way to cost effectively fill key talent gaps. 14
  15. 15. Finding 5Leading organisations primarily invest in workforce planningas a tool to support specific business strategies – not as atool to address workforce related issues. Leading organisations were less motivated by HR related issues and tended to cite reasons that were aligned with business issues and overall business strategy. For Leading Edge organisations, the top 3 motivators were: – Business Growth – Change in Business Strategy – Shortage of Critical Skills. For Leading Edge organisations, the bottom 3 motivators were: – Downsizing – Ageing Workforce – High Labour Turnover. 15
  16. 16. Finding 6Leading organisations are far more likely to implementspecific talent management initiatives as a result of theirworkforce planning efforts. Leading organisations consistently report implementing a greater number, and most likely a broader range, of people initiatives: – 59% have implemented at least four strategies – 31% having implemented at least three strategies. 50% of Emerging organisations have not implemented any people strategies at all. Top 5 people initiatives Leading organisations are implementing: – Retention strategies (75%) – Attracting talent (75%) – Extending existing and developing new career paths (75%) – Partnering with schools, universities etc (56%) – Increasing range of supply sources (44%). 16
  17. 17. Finding 7Leading organisations are far more likely to use advancedtechnologies in support of their workforce planning efforts. Leading organisations are at least twice as likely to utilise a broader range of tools as Lagging and Emerging organisations. Lagging organisations are five times more likely than Leading respondents to utilise no technology to automate their workforce planning processes. Excel Spreadsheets 251 Workforce Planning Tools 142 Recruiting/Staffing Tools 125 Business Intelligence/Analytical Tools 120 Succession Planning Tools 97 Talent Management Tools 84 None 39 Other 28 0 50 100 150 200 250 300 17
  18. 18. Finding 8Leading organisations prioritise a different, more businessrelevant, set of competencies needed for those involved inworkforce planning. For Leading Edge organisations, the top 3 competencies needed for workforce planners were: – Knowledge of the business planning process – Communication skills – Analytical skills. For Leading Edge organisations, the bottom 3 competencies for workforce planners were: – Knowledge of demand and supply forecasting techniques – Determining position competencies – Business Acumen. 18
  19. 19. Finding 9Leading organisations continually push to improve thebusiness relevance of workforce planning – even to the pointof managing the process outside of HR Overwhelmingly workforce planning is performed not for the sake of HR, but for its value to the business. Leading organisations are more likely to structure themselves for success, having a much higher proportion of functions outside of HR running their workforce planning processes. Results show the least effective structure is the decentralised process. This can translate to a lack of standards or cohesion of the data and the process, and it appears to deliver the least business value, the lowest reported level of competitive advantage, and statistically, you are least likely to become a Leading organisation. 19
  20. 20. Personalobservationsin WorkforcePlanning 20
  21. 21. What workforce planning is not• A commitment to future decisions• Something that is done once and forgotten about – ―a box to tick‖• A report to go on a shelf• Something done just by HR• The way to fill vacancies today – staffing or budgeting• Analysis of every role and workforce issue across the organisation• A perfect prediction of future workforce needs (especially numbers) 1 year 3 years 5+ yearsTimeStaffing/Budgeting Workforce Planning 21
  22. 22. Evaluate the current workforce to identify potential risks Segment-specific talent reviews form an important part of demand forecasting—estimating the quantity and quality of the future workforce. What job roles currently exist in your organisation? Of those job roles which: – Conduct the core business of the organisation? – May become part of the core business under either scenario? – Have had a high number of vacancies over the last 12 months? – Have been difficult to fill? – Require a long training time in order to develop the skills for the role? – Have the largest number of staff? Tip: Communicate how the risk of losing staff in your critical roles will impact the business 22
  23. 23. With changes to the economy, it is critical to create future scenarios Scenarios are a framework for managing change and risk. Develop alternative views of the future based on events outside of your control: – Issues for the whole workforce – Issues for the Industry – Issues for your Organisation. Develop strategies for changing those things you can control. Scenarios help us deal with the unknown. Scenarios let us rehearse how we might adapt to future events today (what if?). They help us monitor the environment and look for weak signals. 23
  24. 24. Workforce Planning is a critical tool in overall Talent Management Career Management - Sleeper in Workforce Planning: – 50-70% of employees will never be promoted – 80-85% of employees will have a maximum of one promotion in the rest of their career. Less than 5% of the workforce (deep specialists) are in the same job for more than 5 years. Career = Positions + Projects + Placements. New career paths build future competencies. Emerging goal for many companies: career paths with four transfers for every promotion: – Career Path Ratio = 0.25 24
  25. 25. Workforce planning is increasingly about risk managementWhere are the gaps In numbers between demand and supply? In skills between demand and supply? Between scenariosWhich are significant? What are the risks? 25
  26. 26. APQCStrategicWorkforcePlanningResearch Findings 26
  27. 27. Research FindingsFinding #1Workforce Planning is Best Managed Through a Centre of ExcellenceFinding #2Establishing a Workforce Planning Foundation Takes Time and DedicatedResourcesFinding #3The Focus of Workforce PlanningFinding #4Establishing a Systematic ProcessFinding #5Building a Team with the Right People 27
  28. 28. Research FindingsFinding #6The Focus of Workforce PlanningFinding #7In Order for Workforce Planning to Be Successful, Organisations Need ActiveSupport from Senior LeadersFinding #8It’s About Organisational Success – Not Just PeopleFinding #9Standards, Confidence, and Credibility Go Hand-in-hand With SuccessfulWorkforce Planning 28
  29. 29. Research FindingsFinding #10Leveraging Workforce Planning and Analytics Software Enables the WorkforcePlanning ProcessFinding #11The Numbers Are a Critical Component of Successful Workforce PlanningFinding #12Planning By Itself Isn’t Enough – Organisations Must Continually Measure theResults of Their Actions 29
  30. 30. Questions 30
  31. 31. Workforce PlanningPeter HowesVice President, SuccessFactorsphowes@successfactors.com© Copyright 2011. All rights reserved. 4/19/2011

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