Strategic Workforce Planning 1

Strategic Workforce Planning: Why It Is Beneficial To Any Business

Talisha Clark University Of Maryland, University College

HRMD 610 Professor Cohen July 28, 2009

Strategic Workforce Planning 2 Abstract

Strategic Workforce Planning (SWP) is a conventional human resource planning process that is designed to anticipate and forecast future opportunities thats critical to any business. People need to get a deeper understanding on SWP, why businesses need to incorporate a sufficient workforce plan, and the benefits that are generated from such a successful plan. The current problem seems to stem from the lack of talent necessary to effectively make critical decisions regarding the potential for future growth. However, many businesses are far more focused on protecting their mission in order to stay ahead of the competition.

Strategic Workforce Plan 3

Strategic Workforce Planning: Why It Is Beneficial To Any Business While some companies have done an extensive amount of work incorporating their practices with current trends into their business, other companies are trailing behind. In order to stay ahead and continue to have a business that flourishes companies need to incorporate effective strategic plans to attract and motivate talented workers. Many businesses use a systematic process know as Strategic Workforce Planning (SWP), a discipline effort to produce fundamental decisions and actions that shape and guide what an organization (or other entity) is, what it does, and why it does it (Bryson, 2004, p.6). A wise author once stated that, If you Fail to Plan, you Plan to Fail (Unknown, n.d). Many businesses are conscious of this

effort, but do not have the necessary framework to grasp this concept. In a recent survey conducted by Aruspex, a workforce planning company, only 46% of respondents had any kind of workforce planning in place (Walton, 2007). With an aging baby boom generation, and retirements on the rise, businesses are being forced to utilize strategic workforce planning. Businesses need to examine and address the following questions within their own company:
1.

Why does one need a strategic workforce plan?

Strategic Workforce Planning 4

2. 3. 4.

How is a strategic workforce plan developed? What are the benefits? How to implement the strategic workforce plan in to ones business? Why do businesses need a strategic workforce plan?

As a result of the aging population, increased retirements, and lack of job loyalty with a company a strategic response is now a necessity in any company. Its imperative for businesses to ensure it has adequate human resources to accomplish its mission. Since all employers compete for employees from the same labor pool, workplace planning is critical for attracting and retaining the talent needed to serve the public. The strategic approach to workforce planning is a far more comprehensive process. Companies will need to examine a long term view of the

needs of the business and focus on the necessary competencies and skill sets that they want and need from talented individuals. Examine this recent case study of how one business looked forward to a new workforce initiative: The worlds leading car manufacture has a loyal and long serving team and is very proud of their diverse workforce, however a shirking workforce supply and retiring employees has led the company to analyze their current state and trends and envision what they needed for the future in a structured way. They also learned the steps of the

Strategic Workforce Plan 5 workforce planning process, which included environment scanning to identify the outside forces affecting the business, calculating the quantitative future by projecting the No Change Future State scenario planning to explore possible qualitative futures, choosing the right goals, and action planning to achieve their targeted future. Using good Strategic Workforce Planning techniques, this manufacture was able to base their action plan on real information rather than arbitrary beliefs. The result was a 2-year plan and a full HR strategy which includes retraining and redeployment for staff whose areas of would diminish in the future, anticipating these changes to minimize the impact the business, and on their loyal workforce. (Calvey, n.d) This business was able to foresee and address the concerns within their company to plan for a better tomorrow. As citizens of this nation have observed how the economy has been transformed over the past year, businesses must look at their current situation and evaluate whether they should maintain or replace their current strategies. How do you develop a Strategic Workforce Plan? Companies are forced to adapt with education trends and new technologies surfacing at a rapid pace everyday. Scrambling to develop a strategic plan to recruit new talent and target areas

Strategic Workforce Planning 6 with the greatest strategic impact is very challenging. Senior

Management knows that strategic workforce planning is a reliable tool. Its in intended to enhance ones ability to think, act and learn strategically (Bryson, 2004, p.27). In order to develop a successful workforce plan the following steps should be taken: Step 1: Organize a team of decision makers with a diverse background Step 2: Identify challenges and struggles Step 3: Clarify the mission and values Step 4: Examine the economic benefits of the right workforce Step 5: Put the plan in to action No one strategic model fits all businesses, but the planning process includes certain basic elements that all businesses can use to explore their vision, goals and next steps of an effective strategic plan(Olsen, 2007, p.9). Without a SWP strategy one would have to rely on bad information, ignore planning processes, and cause you to copy and paste companies and business; this would only prohibit all elements of the plan from coming together. What are the benefits? Economic:

Profits can be increased through a combination of new technology and the increased capacity of work place

Strategic Workforce Plan 7 education programs where trained employees can use the technology more effectively.

Able to forecast future openings, retirements, turnovers, and job vacancies.

Finances budgeted for important areas such as: marketing, human resources, and employee bonuses.

Environmental:

Demography changes make businesses realize that there will not be an endless workforce supply within their geography.

As social trends change: working parents, contingency workers and semi-retirees; companies will learn that different communities demand different things of their employers.

Businesses will learn to create a more unique work culture and managerial approach that is supportive of balance between work and personal commitments.

Corporate:

Businesses will adapt to rapid changes in the job market and work related technologies will increase learning for virtually every worker.

How to implement the Strategic Workforce Plan in a business? Reaching a good outcome has to have three themes assessments, processes and targets. Communicating before,

Strategic Workforce Planning 8 during, and after the process will keep employees informed and involved so its not a surprise. Often overlooked are the five key components necessary to support implementation: people, resources, structure, systems, and culture (Olsen, 2007, p.266); this keeps the plan on the forefront of everyones mind. Preparing a different version of the SWP for each group will ensure that it doesnt bog down individuals with unnecessary information. Something to keep in mind is that it may not come

naturally strong voices can overcome dissent and contrary evidence, unless carefully implemented. Here are several key steps to implement a SWP in order to see results:
1.

Get all departments head together once a week to discuss issues and new ideas that they may have to share. Supervisors should come to the meeting more so as a friend rather than a manager in order to not disturb the flow of information. Newcomers should feel welcomed and should not be excluded from the decision process.

2.

Earn the respect of all employees. Not all managers are liked, but you cant win over everyone. Respect can bring the best employees to your company. Share stories of how you struggled to get where you are. Talk to employees about

Strategic Workforce Plan 9 your day; they may be able to shed some key factors in your discussion making process.
3.

Maintain a constant flow of information from social groups and consultants. The best way to stay current with the market is to understand what the market wants. When least expected, new technologies and social issues may alter business practices; trends come and go in the blink of an eye. Find out what employees are dealing with outside of the job.

4.

Optimize goals for the business. Allocate funds to different areas of the business. Use that money to start programs for employees. Have free lunch days; organize events to give back to the community, etc. Make colleges your resource for pools of talent. Make current employees feel like decision makers.

In conclusion, making sure that management has the mindset that Strategic Workforce Planning is a critical issue should not be ignored. Build in enough people time, attention, money, administrative and support services, (Bryson, 2004, p.252) and one will see the ultimate result. This is not the end, just the beginning of a blossoming strategic management system.

Strategic Workforce Planning 10 References

Bryson, John M (2004). Strategic Planning for Public and Nonprofit Organizations. San Francisco, CA: Jossey-Bass Calvey, Sue. (n.d) How Toyota looks forward to a new workforce tomorrow? Retrieved July 13, 2009, from http://www.aruspex.com/home.php Olsen, Erica (2007). Strategic Planning For Dummies. Indianapolis, IN: Wiley Publishing Walton, Tess (2007). A Real World Approach to Planning the Right Workforce for Tomorrows Organizations, Retrieved July 13 2009, from http://www.aruspex.com/home.php