This document summarizes a webinar on workforce planning. It discusses trends driving the need for effective workforce planning, such as economic uncertainty, globalization, and demographic shifts. It emphasizes that HR needs to drive the people strategy and workforce planning process. The webinar covers key concepts for workforce planning, including using what-if modeling to understand cost impacts, collaborative workforce budgeting, and monitoring progress against the plan. It presents workforce planning as a continuous process that HR facilitates by analyzing costs, aligning budgets, and acting to monitor progress and update plans regularly.

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The Next Big HR Transformation: How to Excel at Workforce Planning

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Speaker: Dino Zincarini Project Manager Workforce Planning Visier Moderator: Max Mihelich Associate Editor Workforce magazine
The Next Big HR Transformation: How to Excel at Workforce Planning

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Max Mihelich
Associate Editor
Workforce magazine
The Next Big HR Transformation: How to Excel at Workforce Planning

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Dino Zincarini Project Manager Workforce Planning Visier
The Next Big HR Transformation: How to Excel at Workforce Planning

10. © 2014 Visier™
The Next Big HR Transformation:
How to Excel at Workforce Planning
Dino Zincarini
December 2014

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WORKFORCE INTELLIGENCE SOLUTIONS. SMART. INTUITIVE. COMPLETE.

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SOME OF OUR AMAZING CUSTOMERS

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TODAY’S TOPICS
Context for the growing importance and value of workforce planning
The BIG concepts that result in effective workforce planning
How HR can be the catalyst for upgrading your company’s workforce planning

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Setting the Stage: Trends Driving Workforce Planning

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Fragile Economic Recovery
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Downward pressure on prices
•
Uncertain economic future
•
But, CEOs are starting to shift from survival to growth mode
“76% of CEOs have cut costs in the last 12 months.”*
Need to protect the bottom line
Need for more responsive, proactive, and agile planning
*PWC 2014 CEO Survey

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Globalization
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Global markets are increasingly important
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By 2025 China will have 45% of global F500
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Increasing proportion of global GDP is coming from emerging markets
Need to compete globally for talent
Need to analyze and compare global options for growth, as part of planning
“50% of CEOs want to increase headcount next year.”*
*PWC 2014 CEO Survey

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Demographic Shift & Skills Shortages
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The working-age population is undergoing a major geographic shift
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Experienced Baby Boomers are retiring
“CEOs in North America see tech advances & demographic shifts as the 2 key global trends that will transform their businesses over the coming 5 years.”
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Need to ensure they have the skills needed to achieve corporate objectives.
Need to manage rising labor costs in emerging economies.
*PWC 2014 CEO Survey

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SUPER FUN AUDIENCE PARTICIPATION TIME! POLL: WHAT IS YOUR COMPANY’S TOP WORKFORCE CONCERN?
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1.
Recruiting high performing talent for succession planning
2.
Developing existing talent for future leadership or scare skills
3.
Retention of high performing talent
4.
Managing costs associated with the workforce
5.
Managing labor and skills to ensure business continuity
POLL: WHAT IS YOUR COMPANY’S TOP WORKFORCE CONCERN?
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2014 HARVARD BUSINESS REVIEW: TOP WORKFORCE CONCERNS
*HR Joins the Analytics Revolution, HBR Analytic Services

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Nearly two-thirds of CEOs believe the HR function is not well-prepared for the changes needed to respond to transformational trends.
*PWC 2014 CEO Survey

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HR MUST DRIVE THE PEOPLE STRATEGY TO RESPOND TO THESE TRENDS
It is difficult to share and collaborate on workforce plans
We have a limited view of workforce costs
We can’t accurately map headcount to costs, so plan for positions, not costs
HR Strategy Gap:
How to connect your people strategy and workforce planning
We do not know our historic trends for planning
Finance owns cost management, but does not consider talent implications
…

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HR MUST UNDERSTAND THE TOTAL COST OF WORKFORCE
How much does our workforce really cost?
How can we optimize our workforce costs?
How are our costs changing over time?
Are we on track with our plan and budget?
How can be better map to Finance?
Most HR departments lack a complete view of workforce costs
76% of CEOs have cut costs in the last 12 months
People are 70% of a company’s cost – and are the “final frontier” of savings in competitive markets

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Effective Workforce Planning: The BIG Concepts that Return Value

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WORKFORCE INTELLIGENCE

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WHAT IS WORKFORCE PLANNING?
Workforce Planning
Workforce Planning is about:
Projecting labor supply based on where you are today
Capturing labor demand for where you want to go
Drawing the picture of how you can get there

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WORKFORCE INTELLIGENCE
Analyze
Align
Act
Where do we start? Where have we been?
What can we do? How do we get there?
How are we doing? Should we change?
Workforce Planning

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GETTING AHEAD OF THE TRENDS
Create “what-if” models to understand the people and cost impacts over time to your organization.
Build workforce budgets by capturing labor demand and projecting labor supply.
Monitor and forecast how well you are executing against your workforce budget to see if you are on or off track.
Analyze
Align
Act

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WHAT-IF MODELS
Create what-if analyses to understand the people and cost impacts over time to your organization.
Build out different scenarios at a high-level, based on different assumptions, and see the projected outcome.
Why?
Who?
When?
•
Brainstorm ideas for future change
•
One person or small group
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Support strategic planning
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Quantify strategies
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Confident with data
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Major event
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Compare possibilities
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Ops or savvy leader
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Ad-hoc question
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Choose the best path
•Business climate change
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Magnitude over precision

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COLLABORATIVE WORKFORCE BUDGETING
Build workforce budgets by capturing labor demand and projecting labor supply.
Why?
Who?
When?
•
Required by Finance to create annual budget
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HR is the facilitator of the process
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Typically annually in support of budget cycle
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Required by HR to understand people plan
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Finance sets the cost constraints
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Re-planning may occur as the business changes
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Compare different possibilities
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Input from all people managers
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Time constrained
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Precision is needed over magnitude
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Collaborate to get to the best estimate
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Establish organizational buy-in

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MONITORING & FORECASTING
Monitor progress and forecast how well you are executing against your workforce plan to see if you are on or off track.
Why?
Who?
When?
•
Turn plans into reality by tracking progress
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Typically Finance with HR support
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Monthly or quarterly forecasting
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Quantify variance to spark corrective action
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Senior leaders and people managers
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Continuous reporting
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Course-correct as business changes
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See results during the plan lifecycle, not after
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Drive accountability

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HR AS THE DRIVER OF SUCCESSFUL WORKFORCE PLANNING
Workforce Planning
Analyze “What-If” Scenarios
Align Workforce Budgeting
Act
Monitor & Forecast
Understand where you are as the starting point for planning where you can be Build scenarios to align the people plan to the business strategy Predict future scenarios based on historical trends
Collaborate across the organization to build plans Share and iterate on headcount demand to increase accuracy and buy-in Match costs to headcount to unify HR and Finance with one version of the truth
Publish plan metrics to all stakeholders to increase visibility
Compare actuals to plan to quantify execution
Adapt to variances quickly by improving execution or modifying the plan

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Transforming Workforce Planning: Driven by HR

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THE REALITY OF WORKFORCE PLANNING TODAY
Many companies follow old processes for workforce planning that, in reality, are more about financial budgeting
Planning happens infrequently and can be very tedious
Plans document intentions but don’t change reality

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Old School
New School
Run a compensation review process.
Own workforce planning in support of the corporate people strategy.
Explain variances between plan and actuals by comparing historical numbers with Finance.
Manage variances by continuously updating the plan with actuals and projecting the impact forward.
Spent too much? Freeze hiring.
Build business scenarios with costs to quantify options and make an optimal recommendation.
Focus on compensation, bonus, benefits.
HR is the expert on the total cost of workforce.
HR is the Administrator
HR is the Facilitator and Advisor
HR IS THE CATALYST TO TRANSFORM WORKFORCE PLANNING

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PLANNING: HR IN THE DRIVER’S SEAT
Analyze
Align
Act

What do our total costs look like?

What is contributing to our cost increases?

Where can we optimize costs?

What is the budget? What should it be?

Where do we want to invest or reduce costs?

What are the talent implications?

What should our workforce plan be?

How are we tracking against our plan and total costs?

Should we adjust our plans?

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THE EVOLUTION OF WORKFORCE PLANNING
Annual process
Different source systems
Headcount focused
Explain the past
Position management driven
No standard processes
Limited view of costs
Continuous processes
One version of the truth
Cost focused
Forecast the future
Cost analytics driven
Standardized processes
Full view of costs (TCOW)
Traditional WFP
Visier WFP

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ANALYZE : WHERE ARE COSTS GOING?

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ALIGN : UNDERSTAND TOTAL COST OF WORKFORCE
(AT LEAST WORK TOWARDS THIS)

Total Cost of Workforce includes all components of cost to the company

This data isn’t always in once place nor in one system

Looks intimidating? Visier can help 

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ALIGN : WHAT DO WE EXPECT TO SPEND?
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ALIGN : WHAT SHOULD WE BE SPENDING?
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ALIGN : WHERE SHOULD WE INVEST?
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ACT : MONITOR & REVISE REGULARLY
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
Monitor actuals and compare to plan to drive accountability

Forecast regularly: Incorporate actuals as they occur and project forward to determine if you will end up on target

Review often and revise the plan if needed

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WORKFORCE INTELLIGENCE
Workforce Planning
Analyze
“What-If” Scenarios
Align
Workforce Budgeting
Act
Monitor & Forecast
Understand where you are as the starting point for planning where you can be
Build scenarios to align the people plan to the business strategy
Predict future scenarios based on historical trends
Collaborate across the organization to build plans Share and iterate on headcount demand to increase accuracy and buy-in Match costs to headcount to unify HR and Finance with one version of the truth
Publish plan metrics to all stakeholders to increase visibility
Compare actuals to plan to quantify execution
Adapt to variances quickly by improving execution or modifying the plan

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RESOURCES AT WWW.VISIER.COM
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DISCUSSION
Dino Zincarini
dino.zincarini@visier.com

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Join our next Webinar!
The Role of the HR Business Partner in Strategic Workforce Planning
18, December, 2014
Webinars start at 2 p.m. Eastern / 11 a.m. Pacific
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