Understanding the strategic imperative and the benefits of Workforce Planning, best practice guidelines for SWP and mapping out the 6-step SWP process

1. STRATEGIC WORKFORCE PLANNING
(SWP)
CHARLES COTTER
28 NOVEMBER 2013
PALAZZO, MONTECASINO

2. PRESENTATION OVERVIEW
Introduction
Key presentation topics
Summary
Questions

3. DEFINING STRATEGIC WORKFORCE
PLANNING (SWP)
SWP is a management process that is being increasingly used to plan for
future labour needs, changes and challenges. It examines the current
workforce and takes a strategic look at what the future workforce demands
will be to develop a human resources plan of action.
SWP involves identifying, assessing, developing and sustaining employee
workforce skills required to successfully accomplish business goals and
priorities while balancing the needs and expectations of employees.
Through this process, organizations gain insight into their workforce capacity
and labour needs so they can make strategic human resources decisions and
take purposeful, timely action towards developing their people.
Essentially, SWP is identifying gaps between the labour demand of an
organization and the available workforce supply, leading to strategies used
to close those gaps.

4. STRATEGIC WORKFORCE PLANNING

5. BEST PRACTICE GUIDELINES FOR
EFFECTIVE SWP
Organized, well coordinated and systematic approach
Future-focused
Aligned with organization’s strategic plans
Collaborative effort (HRM has co-opted business partners to the process)
Work-in-progress (responsive not reactive)
Targeted for success (with a positive ROI)
Measurable outcomes
Integration (bundling) with other HR processes e.g. Succession Planning

6. THE STRATEGIC IMPERATIVE OF
WORKFORCE PLANNING
“Strategic workforce planning helps organizations understand the
talent required to deliver their strategy – without it, the costs are
significant.” (Hay Group UK)
“A talented and aligned workforce is crucial for bringing strategy
to life and ensuring an organization delivers on its objectives” (Hay
Group UK)
“Bringing together the right information with the right people will
dramatically improve a company’s ability to develop and act on
strategic business opportunities” (Bill Gates)
“CEO’s expect the Human Resources function to play a much more
active role in enabling business strategies.” (Deloitte, 2013)

7. PURPOSE OF SWP
Ensure adequate human resources to meet the strategic
goals and operational plans of your organization - the right
people with the right skills at the right time
Keep up with social, economic, legislative and
technological trends that impact on human resources in
your area and in the sector
Remain flexible so that your organization can manage
change if the future is different than anticipated

8. TOP BENEFITS OF SWP

9. SWP – IMPROVEMENTS AND
COMPETITIVE ADVANTAGES
Value improvement and cost reduction – through right sizing
the workforce
Assurance that business strategy can be delivered
Better productivity – through workforce alignment to operating
model
Competitive advantage through a more skilled and innovative
workforce
Higher quality and timeliness of customer delivery
Greater staff engagement and retention and lower levels of
stress

10. SWP: S-P-A-D-I-C PROCESS/CYCLE
S CANNING
P ROFILING
A NALYZING
D EVELOPING
I MPLEMENTING
C ONTROLLING

11. SWP PROCESS ILLUSTRATED

12. STEP 1: SCANNING – STRATEGIC
ANALYSIS
Review current HR and organizational strategies
(Strategic Intent)
Conduct an environmental scan
Identifying workforce trends and challenges
Benchmarking
Preferred Scanning tools – SWOT and PESTEL
Analyses

13. STEP 2: PROFILING
Forecasting HR Demand
Measuring Current Supply

14. FORECASTING HR DEMAND
Forecasting should consider the past and the present
requirements as well as future organizational directions
Number of employees
Type of employees
Skills requirements of these employees
Consider and assess the challenges and constraints

15. MEASURING CURRENT SUPPLY
Assess the current HR capacity of the organization by means of
the Skill inventories method
The knowledge, skills and abilities of your current staff need to
be identified
Employee experience, education and special skills
Certificates or additional training should also be included
A forecast of the supply of employees projected to join the
organization from outside sources
HR indicators, metrics and indices e.g. turnover rates

16. GETTING IT RIGHT
Right Size
Right Shape
Right Skills
Right Place
Right Cost

17. STEP 3: ANALYZING –
RECONCILING/GAP ANALYSIS

18. STEP 4: DEVELOPING – STRATEGIC
HR ACTION PLANS

19. STEP 5: IMPLEMENTING INTERVENTIONS
Restructuring strategies
Training and development strategies
Recruitment strategies
Outsourcing strategies
Collaboration strategies
Integration strategies

20. STEP 6: CONTROLLING

21. SUMMARY
Key points
Questions
Conclusion
Contact details:
 Charles Cotter
 084 562 9446
 charlescot@polka.co.za
 Linked In
 Twitter: @Charles_Cotter