Building business capability through workforce planning

• Define ‘Workforce Planning’ for the agency

The aim should be to develop a common understanding across the organisation which also meets agency needs at this point in time. You might want to include an outline of what the agency expects to achieve from workforce planning efforts (eg business transformation, increased business performance, increased staff capability), the timeframe for planning and so on.

• Identify the strategic direction and business drivers for the agency for both the present and future

Start with corporate planning documents, including the mission statement and relevant business plans.

Ask senior executive managers key strategic business questions.

• Assess what is needed:
  • Scope
  • Timeframe
  • Sophistication (level of forecasting)
  • Planning horizons (short, medium or long term)
  • Resources
  • Corporate or business unit focus
  • Tactics

Be specific about what will be targeted and where.

Will forecasting be based on general trends or detailed statistics?

Automate processes where possible so more time can be spent on analysis and planning.

It is important to develop workforce planning and associated skills across the organisation. Consider formal training options in workforce planning, project management, influencing / negotiation skills, change management or data analysis, and make use of HR networks to discuss workforce planning approaches, benefits and challenges.

• Identify key stakeholders and their roles and expectations

An analysis tool which maps the level of influence [high/low] and support [driving/resisting] of each key stakeholder could be useful here.

• Obtain visible senior leadership support

Successful workforce planning starts at the top:

• Consider developing a business case which provides evidence and creates a sense of urgency
• Communicate workforce planning as an investment in staffing for and enhancing business performance rather than an expense (what is the cost of not workforce planning?)

Involve senior executives and line managers in issue identification and action planning (see the APSC’s Consultation Questions for Business Unit Managers online resource for assistance).

• Embed workforce planning processes into broader organisational planning processes to achieve a higher success rate

It is important that workforce planning is not viewed solely as an ‘HR activity’.

If workforce planning is integrated with business planning processes, it may be easier to attract resources.

• Anticipate difficulties/challenges and identify measures to overcome them

Plan to address these early on in the process.

• Establish an evaluation process which includes criteria against which to measure workforce planning success

Plan for evaluation activity of all components of the planning process to occur at regular intervals.

Operating Environment

• Distinguish broad environmental factors that may impact on the agency’s current workforce
• Identify the likely future conditions or scenarios for the agency
• Identify key roles and job categories (e.g. positions, classifications, skills and professions) for business success
• Isolate the critical factors impacting on capacity/capability of the future workforce
• Consult line experts and key staff
• Consider the risk of ‘doing nothing’

Environmental factors are both external and internal and include:

• External:Political, legislative, compliance, economic, labour market, social, policy, technology, environment, educational, recruitment competition, comparative pay rates, service expectations, sector/industry-wide trends.
• Internal: Agency mission/vision, culture and values, current business drivers, business challenges, structure, resources, knowledge management, new programmes/service demands, current ‘bench strength’, agency performance, customer feedback.

Consider this simple approach to scenario planning:

• Review available organisational information;
• Workshop the data with relevant managers;
• Define two or three possible scenarios;
• Assess the likelihood and impact of each scenario occurring;
• Identify the desired future;
• Use understanding of scenarios to feed into workforce planning efforts and strategy;
• Reality-check and amend scenarios as necessary and modify relevant workforce planning strategy.

Information -v- Data: determine critical data to allow for focused analysis and to keep workforce planning activity manageable. Don’t over-do the accuracy; concentrate on overall percentages and emerging trends.

Consider the following sources of workforce information:

• organisational plans (strategic, corporate, business, service and change management), budget reports, structure charts, exit interview data
• agency HRMIS
• APSED internet interface (https://www.apsedii.gov.au/)
• Management Advisory Committee (MAC) reports
• State of the Service reports
• Labour market data from relevant government agencies such as DEWR, ABS, DEST and industry bodies

Build the evidence. Consider the following:

• Have work requirements changed?
• Does the work still need to be done?
• Is the work being done aligned to organisational strategy?
• How will work flow into each part of the organisation?
• Are we structured the right way?
• Are there changes planned to the location of work? (eg virtual offices, relocations, teleworking)
• Are there staff shortages in particular areas of work?
• Do employees have the required skills and capabilities?
• How is knowledge transferred and how long does it take to develop ‘critical skills’?
• What skills are no longer required, or will no longer be required in the future?

It can be challenging to pinpoint specific skill requirements. Sources of data and/or measurement tools to assist in this process include employee interviews and surveys, performance agreements, development plans, capability frameworks, self assessments, managerial input and 360-degree surveys. Consider maintaining an electronic employee skills inventory.

Supply-side factors

• Identify and access critical staffing information (eg recruitment, retention, attrition)
• Analyse trend data for key roles and job categories (e.g. positions, classifications, skills and professions)
• Understand current levels of capability (including cultural)

 Demand-side factors

• Evaluate current and anticipated workload issues
• Identify and consider current and future occupational shortages
• Identify priority capabilities now and into the future

What is the ‘gap’?

• Identify the gap between demand and supply factors
• Undertake a risk assessment of critical workforce issues and/or skills gaps in order to focus workforce planning efforts
• Identify the necessary changes to the nature or composition of the agency’s workforce to meet the targeted (desired) future
• Assess where the agency needs time to respond

• Identify levers to maximise agency performance, such as:
  • Developing the organisation *
  • Developing the current workforce *
  • Developing the future workforce *
• Select appropriate short and long term strategies which are prioritised and assigned accountability
• Negotiate required resources – consider dedicating staff to ensure the implementation of workforce planning processes and strategies

Tackle the hot issues first. Select the right strategy by balancing the agency’s context and available budget with the issue’s priority and the risk involved if no action is taken.

An integrated approach works best – the impact of one strategy on others needs to be considered and may influence the design of other strategies.

Ensure all policies and procedures are consistent with APS Values.

* See the APSC’s Building Business Capability Through Workforce Planning decision-making guide for assistance.

• Develop high-level and more detailed plans that outline how the chosen strategies will be achieved (including targets, resources and review dates)

The power of workforce planning activity is that it assists the agency to plan for and address the staffing implications of business change. However, there is no singular or ideal template for a workforce plan, and an agency should design a format which suits their style and purpose.

A formal workforce plan may include any or all of these elements:

• Agency workforce planning approach
• Analysis of the internal and external operating contexts, or ‘current condition’
• Possible scenarios for future activity for both the shorter term (eg 12 months) and longer term (eg 3+ years)
• Identification of mission critical roles and job categories that workforce planning efforts will focus on
• An analysis of relevant staffing supply and trends (eg full-time equivalent, length of service, age profile, employee mix, employment status, turnover rate, anticipated retirements, vacancy projections, recruitment trends, career patterns, contingent workforce, transfer and promotion rates, performance levels, exit interview and other survey data)
• Estimate of the demand for the type of job roles and staff required for the targeted future
• Analysis of current skill levels and profile of capabilities (including cultural) required in the future (‘bench strength’)
• Gap analysis between workforce supply, demand and capability factors
• Identification and prioritisation of critical workforce and skill risks
• Comprehensive and tailored plans for the short, medium and long term that address risks at the same level of their probable solution (eg agency, divisional, work group)
• Communication, implementation and review strategy

• Identify and align existing processes that support workforce planning strategy (HR and wider)

• Address anticipated and unforeseen challenges/difficulties

• Ensure a shared understanding of roles and objectives associated with workforce planning

• Support stakeholder understanding of workforce planning as a continuous process

• Continue to monitor internal and external developments
• Continue to monitor the success of strategic interventions
• Periodically evaluate, fine-tune and align agency workforce planning processes

Check your progress against the measures of success identified during the project planning phase.

Plan for your next review.