The Science Of Recruiting
Fifty-nine percent of Human Resources executives report that their organizations are not adequately staffed for the future, but only 46 percent have a of workforce planning framework in place, according to a recent survey by Aruspex. In a 2007 survey by Infohrm, only 14 percent of firms reported that they feel adequately prepared for the loss of skills, corporate knowledge and leadership that is expected to occur over the next five years.
Most companies do little in the way of workforce planning, often failing to properly analyze and forecast for talent demand and supply as the organization implements its business strategy.
Although 43 percent of companies report that they have some kind of formal workforce planning process in place, only 20 percent say their process is to a large extent integrated into the firm's strategic business plan. The Infohrm survey also found that companies with workforce planning in place still struggle with forecasting.
All this is about to change. As a consequence of the economic downturn, senior executives are increasingly demanding detailed forecasts for workforce needs and the associated costs over a multi-year horizon.
Potential Cost Savings
One of the potential outcomes leading the drive to better workforce planning and forecasting are the potential cost savings associated with the size of the workforce, plus savings from lower recruiting and severance costs and avoiding the costs of a disengaged workforce.
Beyond the headcount required to meet future business needs, human resources is also analyzing staffing mix — the ratio of internal to external resources — and the skills mix, including any changes in that mix that are required over time.
Although staffing decisions usually reside inside the human resources department in most companies, it is increasingly becoming the responsibility of individual business units — especially in companies where blended teams are in place.
Balacing Supply And Demand
A flexible workforce plan keeps businesses from falling victim to both overstaffing and understaffing mistakes, enabling them to better prepare for a range of business scenarios and the staffing needs each requires. More and more organizations have adopted a supply chain model for staffing since the overall approach and the calculations of costs and business impact are similar to supply chain management techniques more or less perfected over the past decade. Experts generally agree that anticipated cost savings match those achieved in the supply chain arena — 10 percent to 15 percent.
Applying supply chain concepts also allows workforce planning to make adjustments that reflect changes in the talent pool. Today's workers tend to move through job cycles much more quickly than their predecessors, adding to costs.
Although there is far less predictability with people than supplies, the model continues to gain acceptance. In addition, savvy staffers are also adopting techniques from finance and procurement departments to improve workforce planning processes.
Before long, the workplace planning process will move outside of human resources to other funations and business units. Business leaders and line managers alike will benefit from additional business options and improved performance. Executed correctly, workplace planning will enable decision makers to extend their vision and their staffing horizon.
