Strategic Workforce Planning Has to Evolve to Create Value (Online Exclusive)

Liz Grausdin, CHRP
Human Resources Business Partner
Valeant Pharmaceuticals International, Inc.
liz.grausdin@valeant.com

Does your organization participate in workforce planning? This is the question I have been asking my colleagues.  The answer is usually “no” or “sort of”.  As HR professionals we all understand the issues facing us.  We receive a steady stream of information regarding retiring baby boomers, skill shortages, and changing career expectations. So why isn’t workforce planning the norm?

As described by The Conference Board of Canada (Implementing Workforce Planning, 3), workforce planning is:

“. . . the analytic, forecasting, and planning process that connects and directs talent management activities to ensure the organization can execute its business strategy by having the right people in the right place at the right time, at the right cost.”

This process requires an in-depth review of how the organization will evolve, typically over a three year span, and the resources required to meet this plan. To briefly summarize, the steps involved are:

1. Review and analyze the strategic direction of the organization.

2. Perform a workforce analysis to identify the skills that are needed to align with the strategic direction.  This will include an examination of the internal and external factors that will impact the workforce.

3. Build a workforce plan by reviewing and including the following:  position descriptions, salaries, development strategies, retention strategies, succession planning, and knowledge transfer strategies.

4. Complete a skills gap analysis to determine current employees’ skills and those required to execute the business strategy.

5. Implementation the required changes.

6. Monitor, assess, and revise as necessary.

It is clear to see that workforce planning is a huge undertaking – but understanding and closing the gap between current state and future state will make the difference in the ability to execute strategy effectively. The decisions we make today affect the outcome of the organization’s bottom line.

Most of us who come to work want a safe, secure workplace with meaningful and challenging work.  A clear understanding of what is needed for the success of the organization can support that desire.  By involving managers and employees in relevant skill building, goal setting, and development plans, opportunity for participation in the future of the organization is present. Employee participation and buy-in is vital to ensure changes made in the organization are executed successfully. Furthermore, the benefits of workforce planning, if done correctly, can improve efficiency and productivity as employees possess the right skills, and are a good fit for their job.

As a HR professional, I believe that workforce planning is a key component to a strategic partnership with other departments and is a tool to assist in translating strategy into action.