Strategic Workforce Planning Guide

STUDENT
GUIDE
BSBHRM614
CONTRIBUTE TO
STRATEGIC WORKFORCE
PLANNING
Victorian Institute of Education | Level 3, 741 George Street Haymarket NSW 2000
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BSBHRM614 Contribute to strategic workforce planning |2
Contents
Overview 4
Topic 1: Undertaking research 5
Topic 2: Strategic workforce planning 17
Topic 3: Implementing a strategic workforce plan 25
Overview
The Student Guide should be used in conjunction with the recommended reading and any further
course notes or activities given by the trainer/assessor.
Application of the unit

This unit describes the skills and knowledge required to contribute to development, implementation
and maintenance of a strategic approach to workforce planning in an organisation ensuring that
there is the structure and staff in place to meet current and foreseeable organisational objectives.
The unit applies to individuals employed as human resource practitioners with knowledge of human
resources and organisational objectives.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Learning goals
Learning goals include:
 You are able to research planning requirements for strategic workforce planning.
 You are able to contribute to the development of strategic workforce planning.
 You are able to support the implementation of strategic workforce planning.
Topic 1: Undertaking research
For this topic, we look at the activities relating to research planning requirements including
analysing strategic plans, the environment, future labour needs, skills and sources of labour supply.
This also includes identifying new technology and its impact on job roles and design and any
changes to industrial and legal requirements.
Human resource practices

However, firstly some background on human resource practices:
 Workforce planning: workforce planning is conducted to identify workforce needs. This will
ensure that a sufficiently qualified workforce is available.
 Recruitment and selection: this includes the management of recruitment and selection of staff.
 Performance appraisals: performance appraisal systems, performance reviews of employees,

tracking progress and planning professional development.
 Employee welfare: setting up systems to ensure employee welfare, advice and assistance to
assist staff both at work and outside of work.
 Training and development: planning training and development opportunities for employees.
 Industrial relations: including terms and conditions of employment, legislative compliances,

regulatory and industrial requirements for the organisation.
 Dismissal and redundancy: dismissals and redundancies of staff according to legislation.
The key functions of human resources are outlined in the figure below:
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H Activity: Watch
Watch the following video as an introduction to human resources strategic planning.

Video: https://www.youtube.com/watch?v=pwFHqtmdzRw (06:09)
Write down any key takeaways. The trainer/assessor will facilitate a discussion about
the outcomes from the video.
Activity: Read
Use the following workforce planning toolkit, published by the Victorian Government
which provides a guide for workforce planning for small to medium sized public sector
organisations:
https://vpsc.vic.gov.au/wp-content/uploads/2015/03/SSA-WorkforceToolkit-
008738494.pdf
Take any notes to summarise what you have read and keep for future reference.
There are four key steps in the human resource strategic planning process:
Assessing current HR capacity.
Based on the organisation's strategic plan, the first step in the strategic HR planning process
is to assess the current HR capacity of the organisation. The knowledge, skills and abilities of
your current staff need to be identified. This can be done by developing a skills inventory for
each employee.
An employee's performance assessment form can be reviewed to determine if the person is
ready and willing to take on more responsibility and to look at the employee's current
development plans.
2 Forecasting HR requirements. The next step is to forecast HR needs for the future based on
the strategic goals of the organisation. Realistic forecasting of human resources involves
estimating both demand and supply. Questions to be answered include:
 How many staff will be required to achieve the strategic goals of the organisation?
 What jobs will need to be filled?
 What skill sets will people need?
When forecasting demands for HR, you must also assess the challenges that you will have in
meeting your staffing need based on the external environment.
3 Gap analysis. The next step is to determine the gap between where the organisation wants to
be in the future and where you are now. The gap analysis includes identifying the number of
staff and the skills and abilities required in the future in comparison to the current situation.
You should also look at all your organisation's HR management practices to identify practices
that could be improved or new practices needed to support the organisation's capacity to
move forward. Questions to be answered include:
 What new jobs will we need?
 What new skills will be required?
 Do our present employees have the required skills?
 Are employees currently in positions that use their strengths?
 Do we have enough managers/supervisors?
 Are current HR management practices adequate for future needs?
4 Developing HR strategies to support organisational strategies. Once all of the above steps
have been completed, the organisation can develop HR strategies to meet the organisation's
needs in the future. This could include, for example, restructuring strategies, training and
development strategies, recruitment strategies, outsourcing strategies and collaboration
strategies.
Ensuring that an organisation has the required human resources in place to meet its current and
future human resources needs is of vital importance.
The purpose of human resource strategic planning is therefore to plan for current and future human
resources needs of a business so as to meet its strategic objectives. Human resources strategic
planning links human resources management to the strategic plan.
Planning and the development of an HR strategy is a critical part of the HR process. It is important
that all HR processes and initiatives are developed as part of an overall people strategy, which is
aligned with, and designed to assist in the achievement of, the organisational strategy and goals.
Aims may include:
 Ensuring adequate human resources to meet the strategic goals and operational plans of the
organisation.
 Keeping up with social, economic, legislative and technological trends that impact on human
resources in your area and in the sector.
 Remaining flexible so that the organisation can manage change if the future is different than
anticipated.
 Ensuring the recruitment of talented personnel.
 Reducing the impact of uncertainty through planning.
Analysing strategic plans

An important first step in human resources strategic planning is to examine the Strategic Plan to
determine the human resources strategic direction, objectives and targets. Firstly, let’s take a look
at the features of a strategic workforce plan and what it includes:
 organisational values: that relate to human resources; these may include values such as
respect, recognition or tolerance.
 strategic directions: including the organisational directions, as well as the human resources
directions that align with the organisational directions.
 targets for human resources: such as the number of staff to be recruited.
 objectives: for example, overall objectives such as a harmonious and happy workforce. More
specific objectives could also be included such as the recruitment of a specific number of staff
in a specific timeframe.
 priorities for human resources: this may include priorities such as implementing new human
resources systems.
 key performance indicators: that specify how performance will be measured.
The format of a strategic plan should guide the direction for all key areas of HR, and is commonly
structured in the format of a planning document to guide the way in which human resources will be
delivered.
Activity: Research and discuss
Analyse a HR strategic plan and address the following:
 What is the workforce direction?
 What are the objectives?
 What are the targets?
You can use the following example, or source one of your own:
https://www.hr.uwa.edu.au/working/plan
Your trainer/assessor will facilitate a discussion after you have completed the activity.
Analysing the organisational environment
An important part of human resources planning is to conduct an environmental analysis to identify
emerging practices and trends that may impact on human resource management within a
business.
Generally, the research would be conducted using available sources of information (secondary
data), for example:
 published data on the internet
 articles and advertisements of competitors
 industry associations and trade media
 reports from trade or professional

associations
 statistics
 industry journals
 media sources
Image by UX Indonesia on Unsplash
 chamber of commerce and industry
 Australian Bureau of Statistics.
An excellent method of conducting an environmental analysis that

can inform human resources strategic planning is through a
PESTLE analysis.
A PESTLE analysis describes a framework of macro-environmental
factors used in strategic management generally and can also be
used in human resources strategic management.
It is part of an external analysis when conducting a strategic analysis and gives an overview of the
different macro-environmental factors to be taken into consideration.
A PESTLE analysis consists of the following:
Political
Political factors are basically how the government intervenes in the economy. These include tax
policy, labour law, environmental law, trade restrictions, tariffs, and political stability.
Economic
Economic factors include economic growth, interest rates, exchange rates, the inflation rate. For
example, interest rates affect a firm's cost of capital and therefore to what extent a business
grows and expands. Exchange rates can affect the costs of exporting goods and the supply and
price of imported goods in an economy.
Social
Social factors include the cultural aspects and health consciousness, population growth rate, age
distribution, career attitudes and emphasis on safety.
Technological
Technological factors include technological aspects like R&D activity, automation, technology
incentives and the rate of technological change. These can determine barriers to entry, minimum
efficient production levels and influence outsourcing decisions. Also, technological shifts affect
costs, quality, and lead to innovation.
Legal
Legal factors include discrimination law, consumer law, antitrust law, employment law, and
health and safety law.
Environmental
Environmental factors include ecological and environmental aspects such as weather, climate,
and climate change, which may especially affect industries such as tourism, farming, and
insurance.
Activity: Read
The following website is also a good source of information on PESTLE analysis:

http://pestleanalysis.com/what-is-environmental-analysis/
Review the following article about human resources and PESTLE analysis:
https://pestleanalysis.com/pestle-analysis-for-human-resources-how-pestle-affects-
hr/
For example, if you are analysing the technological factors, you may identify emerging practices
and trends that may impact on human resource management are:
 The adoption of social media and AI to become more proactive when recruiting
 Using HR chatbots to provide realtime feedback or provide immediate direction on information

for employees.
Or for social factors, a current trend is the rise of Generation Z entering the workforce and baby
boomers exiting; their values and approach to working is very different. Therefore, you may need to
address the generational shift.
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Research two emerging trends/practices within human resources management.
How do these trends affect today’s practices?
Your trainer/assessor will facilitate a discussion about the outcomes from the
research.
Future labour needs and skill requirements

The analysis of the strategic objectives should also involve determining the labour needed to
achieve the organisation’s objectives.
For example, the strategic objectives may shed light on the number of staff required, the roles of
each staff member and the skills they need.
This information should then be used to plan these future labour needs and skills requirements.As
an example, say a Strategic Plan for a college such as the one you are studying at included an
objective to set up a new campus in another state in a year’s time.
A human resources manager would need to include this in their human resources plan and forecast
the number and type of staff needed, as well as the skills they will need.
Activity: Read
Read the article at the following link about labour demand forecasting, as well as
planning future workforce changes:
https://pod.co.nz/resources/labour-demand-forecasting/
https://www.forgov.qld.gov.au/plan-future-workforce-changes
Sourcing the labour supply

Once the labour supply has been forecasted, you will need to determine how to source the labour
supply. There are a number of options for this including:
 Utilising a range of recruitment methods to recruit staff
 Casual labour
 Hiring new graduates or trainees
 Hiring offshore workers
 Outsourcing to other companies
 Using contractors
 Using consultants.
How a labour supply is sourced will ultimately depend on the situation. For example, if the business
is in uncertain times, it may consider that casual labour or a contractor or consultant is a better
option until such time that the business is on a stable footing and can consider permanent staff.
There are also pros and cons of the above labour supply sourcing methods. For example,
contractors and consultants are often highly qualified and skilled and therefore in an excellent
position to complete the work required. On the other hand, their costs are usually higher and they
have the ability to move onto another company at any time being a contractor.
The following table outlines several options for sourcing a workforce, along with advantages and
disadvantages for the provision of human resource services:
Workforce option Advantages Disadvantages
Recruiting externally means Larger pool of candidates Takes longer to hire staff
seeking candidates from
Potential to increase Can be costly
outside of the organisation
diversity to the workforce
through a range of recruitment Internal staff feel aggrieved as
options such as advertising on Provides the opportunity to they feel it lessens their chance of
Seek or in the newspaper. bring in candidates with promotion.
fresh ideas
Casual labour means hiring Quick solution to meeting Casual labour unlikely to be loyal
employees for a short period of workforce needs to a company
time or to fill gaps when
No responsibility to keeping Casual labour not as familiar with
employees are sick.
staff member on company procedures or ethics
Entitlements for full-time Can be costlier, as rates are
employees do not apply sometimes higher
New graduates or trainees can Can be hired initially at a May be inexperienced and need a
be hired to come into entry lower pay rate lot of attention
level positions within the
Trained to perform a May not have the depth of
organisation.
specific job knowledge and skills of an
experienced worker
Government funding may
be available May leave once full training is
provided.
Offshore workers may be Access to a larger pool of Cultural fit may be an issue
recruited from overseas and candidates from overseas
Language may be an issue
assistance with visas provided.
Potential to increase
May leave to go to home country
diversity to the workforce
Provides the opportunity to
bring in candidates with
fresh ideas
Workforce option Advantages Disadvantages
Services required within the Specialist skills to perform Expertise resides outside
organisation may be performed function organisation
by a contractor who could be
No responsibility to keep the Limited opportunity to build
employed for a specific amount
staff member on internal expertise
of time.
Flexible option for acquiring Contractor may not be loyal to the
services organisation
Consultants can be hired to Specialist skills to perform Expertise resides outside

provide a range of specialist function organisation
advice and services.
Specific expertise is brought Limited opportunity to build
in to resolve issues internal expertise
No responsibility for Can be expensive
ongoing relationship
Recruitment and selection can Specialist skills to perform Expertise resides outside
be outsourced to a specialist function organisation
recruitment agency that can
Fixed costs Limited opportunity to build
perform all the functions of a
internal expertise.
HR department to assist in No on costs
acquiring the required staff. No space allocation or
equipment required
Flexible option.
Read the following article about the pros and cons of outsourcing:
https://www.acaciahrsolutions.com/pros-cons-of-outsourcing-your-hr-human-
resources-solutions-functions-support-services-for-small-businesses-and-companies/
Then choose one of other methods above referred to under sourcing human
resources and research the internet to identify pros and cons. Make notes to share
with the group.
research.
The impact of technology
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As you can imagine, technology is playing a major role in impacting the way in which job roles and
job design are being defined.
Some new technologies currently include:
Therefore, when planning human resources strategies, these impacts must be considered. New
technology can result in both the increase and reduction of employees, as well as the requirement
for employees to gain new skills to assist them to use new technology.
Impacts on job roles:

Digital communication allows for more
social interaction, collaboration, and
innovation.
Workers need to have high-level skills,

conversely, the introduction of AI and
robotics automating tasks that humans
once held, making their roles redundant.
Provides more flexibility with working

hours and working from home.
Impacts on job design:

Routine and manual tasks are being automated
Makes high skill jobs more motivating
Employees need upskilling and reskilling to perform new tasks

Image by Alex Kotliarskyi on Unsplash
Read the following article about the impact on technology on both employment and
unemployment:
http://il4syrians.org/impact-of-technology-on-employment-%26-unemployment
Identify a specific example of new technology and research its impact on related job
roles and design.
Your trainer/assessor will facilitate a discussion when the activity has been
completed where you can share your findings.
Industrial and legal requirements

A final issue to consider as part of human resources strategic planning is any change or potential
changes to the industrial climate and legal requirements. Such considerations are key for planning
as they obviously impact on terms and conditions of employees and will also relate to legal
compliances.
Activity: Read
Read the following article of the changes to Sunday penalty rates, documented at the
following link:
https://www.abc.net.au/news/2017-06-05/fair-work-commission-rules-cuts-to-penalty-
rates/8591070
A business engaged in human resources strategic planning would need to factor this
into its planning as for example, it could be harder to source workers who are
unwilling to work on Sundays for less pay than they previously gained.
Discuss the article with your trainer/assessor.
Review the following link for more information about employment law changes that
can impact human resources:
https://employsure.com.au/guides/employment-contracts-and-legislation/
employment-law-changes/
Changes in legislation will also inform human resources strategic planning. For example, as each
year the Fair Work Commission reviews and updates the national minimum wages, a human
resources manager will need to make sure that this is factored into planning e.g. regular review of
information, as well as the increased wages that may apply that may impact on the number of
employees a business can hire.
Human resourcemanagers not only need to keep up to date with legislation changes to inform
human resources strategies, but also to understand legislation overall that applies to the human
resources function.
The Fair Work Act is the main legislation that governs the employee/employer relationship in
Australia. The Act provides a safety net of minimum entitlements, enables flexible working
arrangements and fairness at work and prevents discrimination against employees.
The National Employment Standards (NES) are 10 minimum employment entitlements that have to
be provided to all employees.
Visit https://www.fairwork.gov.auand undertake the following:
 Identify the ten NES.
 Research legislation that applies to discrimination in the workplace.
 Research what is meant by equal opportunity.
Select one organisation that you can base your research on for the following:
 Review the information on awards and agreement for the selected organisation
in their industry relating to one work role. For example, it could be for an
accountant, hairdresser or fitness instructor.
 Conduct research on the internet to find out any recent or potential changes that
are occurring to both industrial and legislative requirements for the organisation
that your chose.
 What would be the realistic options for sourcing labour for this organisation?
 Thinking of emerging technology trends and impacts, what would be the

organisation’s future labour needs and skills requirements for employees within
the industry?
Provide a brief overview and include a link to the information you have sourced.
Submit your research in a professionally presented document.
Your trainer/assessor will provide you with feedback.
Topic 2: Strategic workforce planning
After conducting research for the planning requirements, the next step in strategic workforce
planning is to develop the plan.
This topic will cover consultation on workforce preferences; philosophies, values and polices to be
agreed; developing strategic objectives and targets for workforce services; options for the provision
of workforce services and costs and benefits; technology and systems needed; analysis of risks for
developing risk mitigation strategies.
A human resources strategic
plan can be structured in many
ways but should include as a
minimum:
 Agreed objectives, targets,

programs and practices
 Priorities
 Budget for human

resources
 Timeframes
 Risk management
 Evaluation against
objectives. Image by Campaign
Creators on Unsplash
Search the internet to identify a Human Resources Strategic Plan.

What are the key features of the plan?
Your trainer/assessor will facilitate discussion where you can contribute by sharing
your findings.
Consulting with managers
An important first step in developing the plan will be to consult with managers about the plan,
including their preferences in relation to human resources.
Managers may come from a range of departments such as sales or marketing or accounts.
Managers may also have a range of human resources preferences that will impact on the human
resources strategic plan.
For example, these human resources preferences may relate to:
 number of staff
 recruitment methods
 terms and conditions of employment
 job roles and responsibilities
 training and development.
It is important to find out about these preferences as part of the human resources strategic
planning process.
Consulting with managers can occur through a range of ways such as:
 Meetings
 Emails
 Closed group online forum
 Using a questionnaire
 Completing HR documentation that addresses specific HR resource options available.
This step is extremely important and should not be overlooked. It can support awareness for the
plan, provides ownership and the consultation may highlight issues, problems, challenges, or
prompt information and ideas that would otherwise not be bought forward.
The consultation may include managers from different functional units who must provide input for
an understanding of their preferences, but also to find out objectives, goals and targets for the
coming year that could influence workforce planning for the organisation.
As part of the consultation with managers it is also important to agree on the human resource
philosophies, values and policies that will form a key part of the human resources strategic plan.
Human resources philosophies are essentially the way that the organisation views human
resources. These philosophies then determine how people are treated.
Example philosophies could be:
 Employees are the focus of the organisation
 Understanding and predicting human behaviour is key.
Human resources values are the values that underpin a Human Resources Strategic plan.
For example, values could include:
Celebrating Teamwork: Encouraging the diversity of thoughts, experiences, and backgrounds

and celebrate participation and partnership in all of our endeavours.
Encouraging Communication: Seeking the input of others and striving for transparency and
inclusiveness.
Human resources policies are those key documents that inform human resources practices within a
company.
For example, policies may relate to recruitment, selection and induction and professional
development and so on.
The human resources strategic plan must take these into account as there are predetermined ways
of doing things.
The human resources strategic plan may also identify that additional policies are needed which
may then be developed as part of the plan; for example if there is no diversity policy.
Review the strategic plan at the following link:

https://www.networkrail.co.uk/wp-content/uploads/2018/02/HR-Strategic-Plan.pdf
Based on your review of the strategic plan, what do you think this organisation’s
human resources philosophies, values and policies are?
Make notes on your answers.
research.
Strategic objectives and targets

Once the overall philosophies, values and policies have been decided upon, strategic objectives
and targets can be set.
Objectives and associated targets may relate to several human resources areas, for example:
 Recruitment and selection
 Professional development
 Talent management
 Succession planning
 Performance management
 Terms and conditions
 Diversity.
For example, an overall objective could be to increase the number of staff, with the target being to
recruit five additional customer services staff by the end of 2020. Note that this objective is a
SMART objective (Specific, Measurable, Achievable, Realistic and Timelines). All objectives
should be SMART objectives so that their achievement can be measured.
A target might be to employee a more diverse labour force by 2022 and so this would be
incorporated in the recruitment and selection process.
Activity: Read
Read the article at the following link about examples of human resources goals and
objectives:
https://smallbusiness.chron.com/examples-human-resources-goals-objectives-
10736.html
Options for the provision of human resource services

As part of the human resources planning process it is important to look at options for the provision
of human resources services within the organisation.
For example, a company may be too small to justify a whole human resources department. Options
for provision of human resources services with a company could include:
 external provision by a consultant or contractor
 outsourcing the work to a human resources consultancy
 internal human resources provision of the service
 internal non-human resources provision of the service i.e. human resources being the function
of a general position such as General Manager.
It is important to look at each of these and complete a detailed review of the costs and benefits of
each option.
Research the options that would be available for human resource services for the
organisation that you selected for your previous research activities.
The trainer/assessor will facilitate adiscussion about the outcomes from the research.
Cost benefit analysis

Cost benefit analysis is an important tool in better decision making and again is key in considering
the most appropriate way of providing human resources.
Cost benefit analysis provides a systematic approach to identifying the costs and benefits of a
range of alternatives and then comparing these to find out the net costs or benefits of each
alternative and ultimately the preferred option/s.
There can be both direct, indirect and hidden costs. For example, a direct cost would be the
purchase of hardware and software for a new information system, or the amount of money spent
for recruitment and selection. The hidden cost could be the need to train staff in using a new
system, the indirect costs relate to the running of the information system such as maintenance of
hardware, electricity, paper for printing.
In our new information system scenario, the benefit can relate to cost savings such as reduced
time to complete tasks, more efficient processes, less errors, increased productivity.
For example:
Cost: Introduction of new technology
You need to work out what these costs mean to the organisation, for example, the cost of
hardware, software, implementing systems, training and ongoing costs.Then factor in the benefits.
Benefits: more streamlined processes, atomisation of tasks, savings due to requiring less staff.
Activity: Read
Review this simple chart and information at the following link to find out about a step-
by-step process for cost benefit analysis:
https://ceowatermandate.org/files/Cost_Benefit_Analysis_Guidance/
Cost_Benefit_Analysis_Guidance.pdf
Also read this specific article about the cost benefit of human resources:
https://hraffiliates.com/the-cost-benefit-analysis-of-human-resources/
Reflect on the options that you identified for human resource services for the
organisation that you selected. Do you think that this would be the most effective
approach? Conduct a cost benefit analysis using the information that you have
(make any assumptions). You may need to conduct further research or use a
different organisation where you can obtain more information that can help you make
an informed analysis.
You must use a spreadsheet or similar software to conduct your analysis.
Your trainer/assessor will help you to conduct the analysis and provide you with
feedback.
Discuss your results in a discussion facilitated by your trainer/assessor.
Technology and systems
Technology is also an important part of the strategic planning process for human resources. It can
be used to support a range of human resources functions and therefore should be considered as
part of the planning process as it could be time to introduce new technology to improve human
resources.
Following are some examples of technology
 Recruitment software to support the recruitment process
 Online payroll services
 Employee engagement tools (such as platforms to engage social networking and

collaboration).
Systems used to support workforce programs and
practices:
 Software systems to track rewards and

recognition
 Performance tracking
 Health and well being programs
 Training and development
 Employee assistance programs.

Image by Arlington Research on Unsplash
An example is a human resources information system that is essentially software that can be used
to manage a range of human resources functions such as employee details, ongoing record of
professional development and performance reviews and for analysing statistics to do with the
workforce.
Identify one technology and one system that could be used to support a workforce
program and practice for the organisation that you selected in the previous activity.
Your trainer/assessor will facilitate a discussion where you can share your ideas.
Contributing input from consultation

After all the feedback has been received from managers, this needs to be analysed and input into
the human resources strategic plan.
Once the input has been integrated into the strategic workforce plan, the next step would be to
obtain support from senior management. This could be by showing the cost benefits that would be
gained and seeking approval for implementation.
Risk mitigation strategies

Analysing risks associated with strategic workforce planning is also very important activity in order
that risk mitigation strategies can be developed to determine the level of protection required.
A risk can be defined as an event or circumstance that has a negative effect on a business.
Risk assessment is a process that is used to identify, analyse and evaluate threats to an
organisation, for example, risks related to the loss of staff or down turns in financials.
Risk identification looks at identifying assets, threats, constructing risk scenarios of vulnerability
and consequence.
Risk analysis looks at the elements making up each risk scenario to determine the likelihood and
impact of each risk occurring then the impact to the business.
The type of risks for strategic workforce planning could include:
Risk Impact
Pandemics Staff unable to come into work
Natural disasters Causing disruption to business
Lack of technological Inability to keep up with the competition

advancement
Staff leaving Due to career advancement, lack of training, leadership or benefits
Non-compliances Fines, loss of reputation.
Risk evaluation can provide an understanding of the significance of the risk level, prioritise them
and then document the risk.
Risk description Likelihood of Impact Priority Reasons

risk of risk of risk
Lack of qualified Possible High High Inability to meet client’s needs.

staff
Reputation of company could
fall.
Developing a risk assessment plan can help to identify and prioritise risks to an organisation. It
would include the measures needed to respond to the risk. This could include risk mitigation to:
 Accept the risk
 Avoid the risk

 Control
 Transfer the risk
 Monitor the risk.
Controls must be able to either reduce the likelihood of risk or reduce the impact.
Risk description Likelihood Impact of Priority Action

of risk risk of risk
Lack of qualified Possible High High Measures to increase skilled

staff workforce.
Professional development to
upskill staff.
Risk mitigation provides a strategy to prepare for and lessen the effects of threat for an
organisation.
Activity: Read
Read more information on risk mitigation:

https://www.solvexia.com/blog/5-types-of-risk-mitigation-strategies
Review more information about human resource management and risk at:
https://articles.extension.org/pages/15506/the-role-of-human-resource-management-
in-risk-management
Topic 3: Implementing a strategic workforce plan
In this topic we look at the activities you would carry out to support the implementation of a
strategic workforce plan including working with stakeholders to meet objectives, monitoring and
reviewing, adapting to changing circumstances and finally evaluating and reviewing the
performance against objectives.
Meeting objectives
To ensure that the strategic workforce plan is implemented according to organisational objectives,
it is important that you are continually working with all the relevant stakeholders.
Key stakeholders involved in implementing the plan can include:
 Human resources staff  Contractors
 Managers  Recruitment agencies
 Unions  Suppliers.
One of the first steps in ensuring that everyone implements the plan is to make sure they know of
its existence. This can be achieved through the consultation process and then by communicating
the implementation activities.
Each staff member involved in implementing the plan must understand their role in implementing it
for instance the action they must take, timelines, key performance indicators and budget allocated.
In your role, you may need to regularly meet with stakeholders or seek updates and discuss
progress on actions and any adjustments that may be needed to ensure that objectives are being
met.
As with any type of implementation, there should be a clear plan of action, with activities, timelines,
roles and responsibilities and clear objectives or targets that need to be met. This may cover a
number of initiatives such as workforce development, recruitment and selection, workforce skilling
or information management.
The following is rough overview of how one initiative might be implemented:
Objective: Expand employee training and development
Implementation plan:
Actions Responsibility Outcome Schedule
Conduct skills assessment HR Assessment completed End Jan

for all staff.
Research courses to meet skills Head of HR List of relevant courses End Feb
gaps.
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Actions
Identify relevant course for staff

members
Responsibility
Head of HR and
line manager
Outcome
Staff mapped to courses
you may need to check in with the person responsible before the scheduled date to see how they
are progressing.
Monitoring and reviewing

Schedule
End March
In the example above you can see that there are several actions due by a certain date. In this case,
Monitoring and reviewing the human resources strategic plan is also important and in fact the plan
itself should ideally include key review dates for this purpose.
Monitoring the plan is important because it enables a human resources manager to:
A review of the plan should include assessing whether:

actions have been completed according to the plan and if not, why not.
timelines have been met and if not why not.
budget has been met and if not why not.
any barriers to implementation that may have been identified.
adjustments that need to be made.
risk mitigation strategies are working.
As a result of monitoring and reviewing, you may find that new workforce issues need to be
addressed or key objectives are not being met.
It can also help to ensure that the plan is meeting its objectives.
You can do this by:

seeking feedback from managers via a weekly status report
seeking feedback from staff using surveys or questionnaires
analysing human resource data
reports initiated from information systems
tracking key performance indicators or targets.
Activity: Read
Read the article at the following link:

https://www.forgov.qld.gov.au/monitor-and-review-strategy
Recommending adaptions
The implementation of a strategic workforce plan can span a number of months or even years.
With time, change can occur. As indicated in the first section, it is important to keep up with
changing trends and sometimes trends may impact on the human resources strategic plan
necessitating change. There also may be changing circumstances that were not accounted for.
Some potential changes could include:
 Change in the organisation’s strategic

direction or objectives
 New technology
 New legislation that impacts human

resources
 Unplanned events (such as Covid 19 or

an earthquake)
 Changing trends with customers, clients

and employees
Image by airfocus on Unsplash
Regular monitoring and reviewing should provide the data needed to ensure that the plan can be
adjusted as required. This needs to be analysed so that recommendations can be made, then any
adaptions to the plan can be made to maintain its successful implementation.
Reflect on the circumstances relating to the recent Covid 19 pandemic and how this
would have affected an organisation’s workforce planning. What changes occurred,
what were the risks, what did organisations do to adapt to the changing
circumstances, how do you think they were affected financially?
Your trainer/assessor will facilitate a discussion.
Evaluate and review performance
It is important to evaluate and review the strategic workforce plan against the initial objectives so
that you can see how well it is performing.
An organisation can then use this information to:
 Assess the appropriateness of the original objectives
 Assess what has been achieved to date
 Identify whether the timelines and budget have been met
 Consider what worked well and what did not
 Report on progress to others such as senior management
 Decide on the next plan of action to take
Ensuring that objectives are SMART objectives in the first place (specific, measurable, achievable,
realistic and timely) will assist with evaluation as it provides clearly defined objectives that can be
measured. For example:
If an organisation had specified that there should be a 5% increase in the number of females in the
workforce by 2022, then this can be measured. If the increase is below then the objective has not
been reached.
The evaluation and review can be conducted using a range of sources. For example, staff surveys
could be conducted to find out about staff views on the effectiveness of a human resources
strategies. Workforce data can also be used. As in the example above, workforce information in
one year could be evaluated against information from another year to analyse changes.
Activity: Read
Read the article at the following link:

https://smallbusiness.chron.com/evaluating-successful-human-resource-
management-plan-77156.html

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STUDENT

Application of the unit

 You are able to contribute to the development of strategic workforce planning.

 You are able to support the implementation of strategic workforce planning.

Human resource practices

 Performance appraisals: performance appraisal systems, performance reviews of employees,

 Industrial relations: including terms and conditions of employment, legislative compliances,

 Dismissal and redundancy: dismissals and redundancies of staff according to legislation.

Watch the following video as an introduction to human resources strategic planning.

 What jobs will need to be filled?

 What skill sets will people need?

 What new skills will be required?

 Do our present employees have the required skills?

 Are employees currently in positions that use their strengths?

 Do we have enough managers/supervisors?

 Are current HR management practices adequate for future needs?

 Ensuring the recruitment of talented personnel.

 Reducing the impact of uncertainty through planning.

Analysing strategic plans

 targets for human resources: such as the number of staff to be recruited.

 key performance indicators: that specify how performance will be measured.

Activity: Research and discuss

Analyse a HR strategic plan and address the following:

 What is the workforce direction?

 What are the objectives?

 What are the targets?

 published data on the internet

 articles and advertisements of competitors

 industry associations and trade media

 reports from trade or professional

 Australian Bureau of Statistics.

An excellent method of conducting an environmental analysis that

The following website is also a good source of information on PESTLE analysis:

 Using HR chatbots to provide realtime feedback or provide immediate direction on information

Activity: Research and discuss

Future labour needs and skill requirements

Sourcing the labour supply

 Utilising a range of recruitment methods to recruit staff

 Hiring new graduates or trainees

 Hiring offshore workers

 Outsourcing to other companies

Workforce option Advantages Disadvantages

Consultants can be hired to Specialist skills to perform Expertise resides outside

Activity: Research and discuss

The impact of technology

Impacts on job roles:

Workers need to have high-level skills,

Provides more flexibility with working

Impacts on job design:

Makes high skill jobs more motivating

Employees need upskilling and reskilling to perform new tasks

Activity: Research and discuss

Industrial and legal requirements

Activity: Research and discuss

Visit https://www.fairwork.gov.auand undertake the following:

 Identify the ten NES.

 Research what is meant by equal opportunity.

 Thinking of emerging technology trends and impacts, what would be the

 Agreed objectives, targets,

 Budget for human

Activity: Research and discuss

Search the internet to identify a Human Resources Strategic Plan.