Workforce Planning

What is workforce planning?

Workforce planning is the English term for personnel planning. It describes all activities and issues relating to the short, medium and long-term organization of a company’s or organization’s personnel. It also includes qualitative and quantitative issues. Personnel planning begins immediately when a company is founded.

The number of unfilled vacancies in Germany has risen steadily since 2011 – Statista. It is therefore clear that it is becoming increasingly difficult to find and hire the right employees. The importance of efficient personnel planning is therefore increasing.

Are workforce planning and personnel planning the same thing?

Yes, workforce planning is the English term for personnel planning.

Strategic vs. operational personnel planning?

How many staff will a company need in the next month? How high is the sickness rate? Why is it so high? What skills do the employees have? What skills will the company need in the future?

These questions provide only a brief insight into the issues surrounding professional personnel planning. A distinction is made between two sub-disciplines:

Strategic personnel planning

Strategic planning is aimed at the long-term personnel situation of a company. Questions are answered here, such as What skills will employees need for future products and markets? How will the personnel market develop? What can the company do to be and remain attractive? How high is the fluctuation and sickness rate? What can be done to improve these values? In essence, the strategic corporate goals are compared with regard to personnel.

Operational personnel planning

Operational planning looks at the short-term processes within the organization relating to personnel. Are all positions filled? Is staff being deployed effectively? Can all services and products be produced, marketed and sold? How high is employee satisfaction? At its core, operational personnel planning ensures the active and smooth operation of the company.

The phases of workforce planning?

Sustainable personnel planning is divided into several phases and work steps which, as a continuous cycle, ensure that the right personnel are available at the right time.

1. analysis of the organizational structure and strategy

In this phase, the current status of personnel is analyzed in terms of quantity and quality. Opportunities are sought to deploy the personnel even more effectively. The company’s objectives are always taken into account as a reference. This phase therefore also includes a strategic component.

2. analysis of employee skills

In this phase, the workforce is scrutinized. What abilities – also known as skills – are available in the organization, what is the level of employee satisfaction, how high is staff turnover and why do employees leave? This makes the current situation with regard to personnel visible to the company.

3. strategic planning of necessary skills

What corporate goals are to be achieved? What abilities, skills or competencies does the company need for this? When do these need to be available? Will the market and therefore the needs of employees or customers change? In this phase, the company’s goals and needs are forecast. This is the target planning.

4. identification of capability gaps

Gaps in skills are identified by comparing the actual situation with the target situation. This phase identifies which areas or which employees have missing or underdeveloped skills. Talent management is another tool for closing these gaps.

5. closing capability gaps

Once skills gaps have been identified, it is important to define and implement how these gaps are to be closed. What further training needs to be carried out? Do any new positions need to be created and filled? Targeted measures can also improve employee satisfaction and reduce staff turnover rates.

6. continuous control

The regular comparison between the company’s strategic goals and the current situation of the workforce shows what progress the measures are making and how effective they are. Are the skills now in place? Has employee satisfaction increased? Has staff turnover decreased? Regular monitoring allows proactive intervention if there are no signs of development.

Summary

Workforce planning or workforce management is an important basis for successfully achieving strategic corporate goals. All personnel-related processes such as planning, organization, time recording, demand planning and much more are mapped in this way. They offer good control options for achieving the desired goal.

Continuous monitoring between target planning and the actual situation allows measures to be derived and implemented quickly in order to promote positive business development. Regular analysis, e.g. through interviews or surveys, also makes the understanding of employees’ needs more visible and approachable. This builds long-term relationships that strengthen the company in the long term.