Workforce Planning

ACHIEVE TALENT MANAGEMENT SUCCESS

Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.



Agenda

  Relationship between Talent Management & WFP   What is WFP   A recent study from Bersin/TNG   Building a WFP model ground up   WFP Capability & Ownership   WFP Maturity model   Technology Landscape   Tips for Implementation



What is Driving The Need For Talent Management?

Agriculture Age

Industrial Age

Knowledge Age

Talent Age



Talent: a critical component of the Business Strategy

BUSINESS STRATEGY

Operations Financial Sales &

Marketing Talent

Aligning Talent Management With Business Strategy Results from Answering and Resolving Fundamental Questions:

1.  How does our business strategy influence our current and future workforce?

2.  What skills do we need to drive our strategy?

3.  How do we transform our workforce and what changes to HR delivery systems, policies and procedures need to occur?

4.  How do we compete more effectively for external talent in the midst of a skills and labor shortage?

5.  How do we engage and develop our workforce in alignment with our business strategy?

6.  Do we have effective system enablement and integration that allows us to quantify the resulting impacts to our business strategy?

Right People at the Right Time in the Right Role At the Most Economical Cost



Components of Talent Management

INTEGRATED TALENT MANAGEMENT

Performance Management

Workforce Planning

Talent Acquisition Organization Design

Succession Planning Compensation Planning

Learning & Development

Competency Management

System Enablement

Strategy

Process

DNA

Scalability



The Vision of integrated TM driven by WFP

  Talent Strategy and Planning as derived from your WFP

  Silos execute processes in accordance with strategy

  Coordination between functions, inputs and outputs

  HR Systems must communicate   Competency management is the

common language   All HR functions operating in

alignment with the business strategy

Bersin Associates, 2008 Talent Management Factbook



What is Workforce Planning?



Workforce Planning in Crisis Mode

67% of companies conduct workforce planning on an “as needed” basis…

 Relocation  Mergers and acquisitions  Change in leadership  Change in company strategy  Global expansion  Diversifying the workforce



Top Challenges in Workforce Planning



Key Findings in Workforce Planning

 The majority of organizations are ineffectual at predicting future talent demands.

 Workforce planning fails when it is viewed as an HR issue rather than a business issue.

 The industries most heavily impacted by aging talent are also the same industries placing a heavy priority on strategic workforce planning.

 Strategic workforce planning will not happen overnight



Key Findings in Workforce Planning

  Organizations need a more consistent approach to workforce planning.

  Understanding talent gaps is imperative to the success of a workforce planning process.

  Recruiting and staffing currently play a small role in workforce planning.

  Technology can improve the workforce planning process for any company at any level of maturity in workforce planning.



Identifying Talent Gaps



Why is it so hard to get WFP off the ground?  Because it comes at you from the top down  But you need to build from the ground up



Building the foundation ~ Data  Requires you to build processes that stabilize the data  Integrate & normalize data from various platforms  Ensure you are gathering the right level of information that will translate into ‘intelligence’  Utilize any company/industry benchmark data to help you set KPI’s

Mining Internal & External Data Basement Level

Internal data warehouses or systems such as: HRMS, Financial Systems, ATS,

LMS, etc.

Environmental Trends such as: Competition, Labor supply, demographics, etc.



Environmental Trending adds perspective



Ensuring a Consistent Process

WFP Objective Forecast Demand

Evaluate Supply

Analyze Gaps

Manage Gaps

Consistent Workforce Planning Methodology Level 1

TM Strategy



Focusing on the most critical versus boiling the ocean

Target Critical Talent Sets Upper Levels



WFP Objective Forecast Demand

Evaluate Supply

Analyze Gaps

Manage Gaps

Business Strategy

Consistent Workforce Planning Methodology

Mining Internal & External Data

Operational Effectiveness

Target Critical Talent Sets

Operational & Strategy Drivers

Business Strategy and Operating Model

Knowledge Transfer

Age/ Retirement Analysis

Retention Management

Capability Management

Mergers & Acquisitions

Headcount Forecasting

Diversity Strategy

Level 1

Basement Level

Upper Levels

Window Views

Strategic Planning Lens: 18+ months

Restructure or Expansion

TM Strategy

Internal data warehouses or systems such as: HRMS, Financial Systems, ATS,

LMS, etc.

Environmental Trends such as: Competition, Labor supply, demographics, etc.

Operational Lens: Typically annual

Environmental

Influences


Workforce Planning Drives Talent Management



Does HR Have the Right Capabilities?

“The biggest risk is that you get a model maker, rather than someone who can genuinely add value to the business.”

--Recent quote from a senior business leader

Source: Corporate Leadership Council 2009



COE Framework

Talent Management based on Applied Intelligence

HR Business Partners

Shared Services Workforce Planning COE

You don’t have to make everyone in HR an expert at WFP



Who Owns the Process?



Workforce Planning Maturity Model



Basic: Traditional WFP



Sample Headcount Report



Further analyze T/O by category (voluntary/grade)



Sample Action Plans



Basic: Situational WFP



Client

Sample Prioritization Schedule



Intermediate: Workforce Analytics



Ordinary Metrics & Measures with WFP Lens

 Turnover – Typically we look at Voluntary vs. Involuntary – Focus is on reducing voluntary

 Performance Ranking – Typically 5 point rating scale – Often a forced distribution

 By looking at turnover data by performance category, you can create a Retention Index – Comparing the average turnover rate to the rate of turnover

within a specific category



Retention Index

Performance Category

Performance Rank All

Far Exceeds Exceeds Meets

Needs to Improve

Does not

meet

# Employees 6500 300 1300 3500 1000 400

Total Turnover 1625 75 450 600 200 300

Turnover % 25% 25% 35% 17% 20% 75%

Retention Index 0% -10% 8% 5% -50%

Talent Leak

Formula: Ave Turnover % – Ave Turnover % in Demographic = Retention Index



Retention Index

Employee Tenure

Tenure All More

than 15 11-15 years

5-10 years

1-4 years

Less than 1 year

# Employees 6500 300 1300 3500 1000 400

Total Turnover 1625 25 200 700 550 150

Turnover % 25% 8% 15% 20% 55% 38%

Retention Index 17% 10% 5% -30% -13%

Talent Leak

Formula: Ave Turnover % – Ave Turnover % in Demographic = Retention Index



Intermediate: Scenario Modeling



Scenario Modeling Example

Current Workforce Plan

Industry Trends

Political Developments

Labor Changes

New Business Strategies

Future Workforce Plan Impact



Example: Company Divestiture Scenario



Advanced: Strategic Workforce Planning



Sample Leader Insight Meeting Questionnaire SPU Leader Insight Meeting

What are your greatest workforce risks/concerns?

What are your expectations from a workforce plan?

How would you define the success of a workforce plan?

What talent information do you need to make strategic decisions?

Who are the key stakeholders in your area we need to speak with?

What financial information do you need to make strategic decisions?

Is the information you need readily available to you?

Validation of talent data

What is the average spend (by discipline) in your workforce?

Do you feel the average spend by discipline is a strength/concern?

Do you have the right talent mix? (FTE, Contract, ExPats, Nationals)?

Is this role difficult to source in the marketplace?

What roles are essential to managing the contract spend for your area?

What roles are essential to managing the contract spend for your area?

What are your training needs talent effectiveness? (internal, external)

Individual action plans for each SPU

to close the gap

Build Development for internal talent

movement

Buy Acquire talent externally

Borrow Augment headcount with

contract or temporary labor

Bounce Planned attrition



Workforce Segmentation



Workforce Segmentation Example

Source: The Conference Board “Strategic Workforce Planning, Forecasting Human Capital Needs to Execute Business Strategy”; via Corning Incorporated

Roles that affect the strategy

Roles affected by the strategy

Strategic

Critical to driving long-term competitive advantage, with specialized skills or

knowledge

Core

The “Engine of the Enterprise,” unique to the company and core to delivering on its

products and/or services

Requisite

Cannot do without, but whose value could be delivered through alternative staffing

strategies (e.g. off-shoring, outsourcing, replace w/technology)

Non-Core

Talent whose skill sets no longer align with the company’s strategic direction

Potential Strategic Action

Talent Segment and Value



Technology Solutions Landscape

Exa

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Tips for implementation



General Q&A

Thank you for attending If you have questions or would like further information,

Email: [email protected] Visit us online at: www.tng.futurestep.com

Contact us at: [email protected]

Workforce Planning

Business

Transcript of Workforce Planning