What is workforce planning?

Workforce planning is a key component of human resource management, and it entails

systematically identifying and analyzing what an organization will require in terms of
workforce size, type, experience, knowledge, and skills in order to fulfill its goals. It is a
business intelligence generation process that informs a company about the present,
transitional, and future influence of the external and internal environment on the firm.

WORKFORCE PLANNING GETTING IT RIGHT

Right
People

Right Cost Right

Skills
Workforce
Planning

Right Right
Time Place

Workforce Planning (WFP)

It’s about…

Having the right people, with the right abilities, in the right place at the right time.

PHASES IN WORKFORCE PLANNING

Step 1: Situational Analysis or Environmental Scanning

 ● Analysis of internal factors
-Human Resources
-Current Processes
-Financial Resources
-Physical Resources
● Analysis of external factors
-Economic Trends
-Labor market conditions or trends
- Regulatory Conditions
Step 2: Forecasting Demand
● General approaches to forecasting manpower demands
1. Quantitative approaches
-Historical ratio analysis
-Trend analysis
-Statistical analysis

2. Qualitative forecasting methods

-Expert forecasts
-Delphi technique
Step 3: Analysis of the Supply of Human Resource
The two important techniques for forecasting of human resource.
1. Succession Analysis
-it is the process of identifying internal candidates for the leadership.
2. Markow Analysis
-it is a transition of probability matrix that it is developed to determine the
probabilities of job incumbents remaining in their jobs for the forecasting.
Step 4: Development of Plans for Action
● Strategies of Development of Plans
-Acquiring talent and hiring manpower externally
-Building internal talents
-“Renting Talents”
-Making changes in schedules and work arrangements
-Making planned reductions in the workforce