1 Copyright Tom Bechet 2007 Workforce Planning: Part 2: Tools and Techniques Prepared for:...

1Copyright Tom Bechet 2007

Workforce Planning:Part 2: Tools and Techniques

Prepared for:

Program/Session Name

Company Name

Date

Presenter Name/Title

Consulting Company Name

Consulting Company Phone

Contact Email Address


Session Overview: Tools and Techniques

• Define the workforce planning process in detail

• Describe what it takes to implement each step

• Provide an actual, consistent example to reinforce key concepts along the way


A Few “Reminders”...


Our Definitions

Staffing includes all managed movement into, around, and out of an organization (e.g., recruiting, hiring, promotion, transfer, redeployment, attrition, retention)

An issue is a gap between where you are and where you need to be in order to achieve business objectives or implement business strategies

A strategy is a long-term directional plan of action that describes how objectives will be met


A Workforce Planning Overview

Develop longer term staffingstrategies that support business strategy

Address staffingstrategically

TimeFrame

Scope

Develop shorter term staffing plans


The Workforce Planning Process

1. Identify a particularly critical staffing issue

2. Define staffing gaps and surpluses

3. Develop staffing strategies

4. Define specific staffing plans/actions


Defining Gaps and SurplusesThe Best Process Design

“Supply Then” “Demand Then”

Gaps

Reduce Deficits and Surpluses

The Supply Side The Demand Side

“Supply Now”

Assumptions (Uncontrollable Staffing)

Adjust Controllable Staffing Actions


Detailed Process Description


The Workforce Planning Process

1. Define a particularly critical staffing issue

2. Define staffing gaps and surpluses for all planning periods

• Define staffing requirements

• Forecast staffing availability

• Compare supply to demand

3. Develop staffing strategies across planning periods

4. Define specific staffing plans/actions for each planning period


1. Define a Critical Staffing Issue

Understand the long-term business context

Identify the issue(s) to be addressed


Example: 1. Define a critical staffing issue

Understand the long-term business context • Significant business growth

• Implementation of a new IT platform

Identify the critical staffing issues to be addressed• Oracle Developers, because

– These skills are scarce and the job market is competitive

– We have not looked for people with these skills before (and don’t know where to look)

• SAP Programmers, because these skills are needed to– Support the transition to the new platform initially

– Build new applications in the new environment later on


2. Define Staffing Gaps and Surpluses

Define model parameters for addressing the issue• Population to be included (e.g., the positions and individuals)

– The target population– Likely sources of needed talent– Possible users of surplus talent

• Planning horizon (e.g., each of the next three years)– How long– How often

• Model/matrix structure (e.g., row and column headings)– Columns often denote capability areas, organization units, functions, or

geographic locations– Rows usually denote capability level


Example: 2. Define staffing gaps and surpluses

Define model parameters• Population: Focus on

– The two key job families (Oracle Developers and SAP Programmers)

– Across the IT organization

• Planning horizon: – One year

– Updated quarterly

• Structure:– Columns: Area of expertise

– Rows: Levels of expertise (“roles”)


Example:

Model Structure OracleDevelopers

SAPProgrammers

ProjectManager

Lead

IndividualContributor

EntryLevel


Example

SupplyNow

Supply Then

DemandThen

StaffingStrategies/

Plans

Gaps/Surpluses

Uncontrollable Staffing Actions

Applying the Matrix...


2. Define Staffing Gaps and Surpluses (cont.)

Define staffing requirements • Define both

– Critical skills

– Staffing levels (“whole bodies” or FTEs)

• Define overall staffing requirements, not increments/changes

• Break a big problem with no solution into little ones that can be addressed (e.g., “mix and match” techniques)



Define staffing requirements: capabilities• Focus on competencies that will be needed in the future

• Identify a small number of critical competencies for each job category (perhaps only 5 or 10)– Those "make or break" for performance

– Those absolutely needed to implement strategy/achieve objectives

– Those needed to win, not just play the game

– Those that differentiate rows and columns



Define staffing requirements: staffing levels• Using the staffing framework created above, estimate the number of

positions (either whole positions or full-time equivalents) required in each cell– Statistical techniques (e.g. regression)

– Staffing ratios

– Staffing by project

– Delphi techniques or structured interviews

– Staffing profiles



Define staffing requirements: staffing levels• Regression (see Demand Example 1)

– Relate staffing drivers to headcount

– Consider one or more independent variables

– Could be linear or curvilinear

– Assess degree of fit (“r squared”)

– Use to predict future staffing levels or analyze current levels

– Best used when past is prologue or when comparing similar locations



Define staffing requirements: staffing levels• Staffing Ratios (See Demand Example 2)

– Relate staffing levels to some other known variable (e.g., the number of new sales dollars to be generated per salesperson, number of calls per customer service rep, span of control)

– Relationships could be direct (e.g., directly related to work/outputs) or indirect (e.g., proportional to another job category)

– Could reflect actual data or targets (e.g., desired relationships)

– Best used when staffing is driven by volume



Define staffing requirements: staffing levels• Project-Based Staffing (See Demand Example 3)

– Desired output: overall staffing levels

– Available input: staffing estimates for individual projects

– Usually zero-based

– Aggregate estimates at particular points in time

– Especially helpful in a project environment



Define staffing requirements: staffing levels• Delphi Techniques or Structured Interviews/Incremental (See Demand

Example 4)– Define staffing needs for individual units

– Define incremental changes, not overall levels/capabilities

– Follow a structured interview• Discuss business objectives/changes

• Discuss current staffing levels and capabilities

• Define how staffing should change (incrementally) to support business plans/objectives

– Especially appropriate where specific “demand” data are not available



Define staffing requirements: staffing levels• Staffing Profiles (See Demand Example 5)

– Define the staffing required to support one “unit” (e.g., location, facility, or project)

– Define the number of units that are planned

– Multiply profile requirements by number of planned units to define required staffing levels

– Could have multiple profiles addressing several staffing drivers

– Most applicable where there are multiple units that recur



Define staffing requirements: capability levels• Project Manager: Project management skills, “bottom-line”

accountability

• Lead: In-depth technical skills in a particular platform or technology

• Individual Contributor: A sufficient understanding of your technology and platforms to perform tasks on your own

• Entry Level: Basic skills and aptitude, but no particular understanding of your technology or platforms

Define required staffing levels• Define staffing needs for each project to be funded

• Sum needs across all projects


Example:

“Demand Then” OracleDevelopers

SAPProgrammers

ProjectManager

12 9

Lead 25 21


62 52

EntryLevel

83 77



Forecast staffing availability (only the “uncontrollables”)• Define the current population in each cell (“Supply Now”)

• Subtract voluntary turnover (e.g., rate times starting population for each cell)

• Subtract retirements (if any)– Based on average age

– Based on a window of eligibility

• Subtract other “planned losses”

• Add in hiring in progress that will be completed during the period


Example:

“Supply Now” OracleDevelopers

SAPProgrammers

ProjectManager

10 8

Lead 22 18


53 44

EntryLevel

71 65



Forecast staffing availability• Assume a voluntary turnover rate of 15%

• Subtract retirements (based on projections of “normal” retirement eligibility)

• No other staffing actions are anticipated


Example:

“Supply Then” OracleDevelopers

SAPProgrammers

ProjectManager

10 - 0.15(10) (voluntary) - 1 (retirement) = 7

5

Lead 22 - 0.15(22) (voluntary) - 1 (retirement) = 18

16


46 40

EntryLevel

61 60



Compare supply to demand for the first planning period • Compare “demand then” to “supply then” for each cell

• Consider both capabilities and staffing levels

• To show deficits/gaps as negative numbers, subtract demand from supply


Example:

Gaps and Surpluses(“Supply Then” – “DemandThen”)

OracleDevelopers

SAPProgrammers

ProjectManager

7 – 12 = -5 5 – 9 = -4

Lead 18 – 25 = -7 6 – 21 = -6


46 – 62 = -16 40 – 52 = -12

EntryLevel

61 – 83 = -22 60 – 77 = -17



Define staffing needs for subsequent periods• Assuming no staffing actions were taken in Period 1, calculate staffing

gaps and surpluses for all remaining planning periods

• Assume only those staffing actions that are “uncontrollable”

Compare needs across periods before attempting to address needs in any one period

• Look for trends

• Determine if needs in a given job category exist in all periods

• Identify possible surpluses


Example:

Gaps and SurplusesAcross All Periods

OracleDevelopers

SAPProgrammers

ProjectManager

Period 1: -5Period 2: -6Period 3: -8

Period 1: -4Period 2: -1Period 3: +2

Lead Period 1: -7Period 2: -9

Period 3: -12

Period 1: -6Period 2: +1Period 3: +3



Period 1: -12Period 2: -5

Period 3: +10EntryLevel


Period 1: -17Period 2: -2

Period 3: +19


3. Develop Staffing Strategies

Define what should be done throughout the planning horizon to fully address critical staffing issues

• Review staffing needs and surpluses across planning periods

• Define long-term, directional staffing strategies needed to fully address critical issues

• Ensure that strategies are consistent with how staff/resources will actually be managed

• Use these strategies as a context for defining near-term staffing plans and actions


Example: 3. Develop staffing strategies

Staffing Strategies/Oracle Developers • At project manager and lead levels, promote from within where

possible

• At the individual contributor level, promote where feasible and supplement with new hires

• At the entry level, rely solely on new hires


Example: 3. Develop staffing strategies

Staffing Strategies/SAP Programmers • At project manager level, promote from within where necessary and

redeploy surplus talent to Oracle Development

• At the lead level, develop key, high talent individuals whose skills can be applied in other areas

• At the individual contributor level, take on a “mix” of full time staff and qualified contractors (some for a one year period)

• At the entry level, rely on a “blend” of full time hires whose talents can be applied elsewhere and contract staff


4. Develop Specific Staffing PlansDefine specific, “controllable” staffing actions that eliminate

gaps/surpluses (consistent with staffing strategies)• Targeted retention

• Redeployment/reallocations

• Recruiting/hiring

• Promotions/transfers

• Reductions

Specifically define each action• From what job/to what job

• How many such moves are needed

• The date by which the move should happen

• The individuals responsible


4. Develop Specific Staffing Plans (cont.)

Make sure plans are realistic• That the assumed number really are promotable• That a sufficient number of external candidates are available and can be

attracted• That contingent staff with required capabilities actually exist

Define required supporting actions (e.g., education, internships, loan programs)

Make sure that you use the staffing strategy as the context for defining and integrating these short-term staffing actions!


Example:

Staffing Plans OracleDevelopers

SAPProgrammers

ProjectManager

-5

5

-4

Lead -7

12

-6

IndividualContributor 12

-16

16

-12

EntryLevel 38

-22 -17


Example:

Staffing Plan for Quarter 1 (Oracle Developers)

• Promotions:– 5 from Oracle Developer/Lead to Oracle Developer/Project Manager

– 12 from Oracle Developer/Individual Contributor to Oracle Developer/Lead

– 16 from Oracle Developer/Entry Level to Oracle Developer/Individual Contributor (with training)

• Hiring:– 12 into Oracle Developer/Individual Contributor

– 38 into Oracle Developer/Entry Level

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