More Companies Turn to Workforce Planning to Boost Productivity
Mary B. Young
The Conference Board, August 2006
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An aging workforce and an emerging "baby boom" retirement wave are driving more companies toward "strategic workforce planning," The Conference Board reports.
"Strategic workforce planning" involves analyzing and forecasting the talent that companies need to execute their business strategy. This relatively new management process is being used increasingly to help control labor costs, assess talent needs, make informed business decisions such as where to open new facilities or whether it’s more cost effective to add full-time employees or contractors, and to assess human-capital needs and risks as part of overall enterprise risk management.
The study from The Conference Board, "Strategic Workforce Planning: Forecasting Human Capital Needs to Execute Business Strategy," also reports that these other forces are driving strategic workforce planning: current movement and projected labor shortages; globalization; the growing use of contingent, flexible workers; the need to leverage human capital to enhance return; mergers and acquisitions; and the evolution of workplace technology and tools. The study includes detailed case studies of nine organizations. It was conducted on behalf of The Conference Board Strategic Workforce Planning Research Working Group – senior executives in 23 companies.
Most companies are still in the process of fully implementing strategic workforce planning or realizing its ultimate potential. Yet even organizations that say they're "not there yet," report that strategic workforce planning is already delivering value by:
The Conference Board report recommends that organizations build on previous successes, such as succession planning or embryonic workforce planning efforts, as a first step in company-wide implementation. It also stresses that HR look for partners in departments such as finance and IT to move the process forward.