workforce strategic planning

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Whitepaper

Do You Really Have a Workforce Strategy?

By Colin Beames (MBA, BA, BEng, MAPS)

Corporate Psychologist

Director, Advanced Workforce Strategies

June 2013

Copyright 2013 Colin Beames


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Do You Really Have a Workforce Strategy? 2

Executive SummaryThe title of this white paper is a little provocative, but deliberately so. It argues the case for organisations to

move beyond the limitations of workforce planning, succession planning and talent management, to develop a

whole of workforce strategy that is aligned with the business strategy.

The Challenge

The No 1 challenge now facing many organisations, and even more so over the next

decade and beyond, will be the strategic management of their workforce. Recent

research has confirmed that this is the number one concern for many CEOs.

A dilemma for organisations in the post GFC era is how to maximise the flexibility of

their workforce (i.e., minimise risk), and attract, develop and retain valuable skills.

The workforce has become more mobilised and diversified with employees now coming

in all shapes and sizes! Dealing with this workforce complexity requires a more

differentiated and sophisticated approach to the management of human capital.

The people factor is arguably the most important driver of business success constituting

between 30-80% of the cost base of organisations. However based on surveys of CEOs, it

is one of the least effectively managed corporate functions.

Limitations of Workforce Planning

Workforce planning is typically tactically focused on head counts and time lines,

undertaken for short-term budgetary purposes by HR and not necessarily owned by the

business. It fails to address the broader strategic workforce questions and adequately

differentiate or segment the workforce. A one size fits all mentality is a recipe for

mediocrity!

Segmentation is a fundamental business concept. It is the key to treating an

organisations workforce assets like a portfolio that can be managed. Yet traditional

approaches to workforce segmentation are limited or flawed (e.g., based on job level).

The strengthening of organisational critical capabilities and core competencies is

becoming increasingly recognised as a key to generating improved business outcomes.

There is a need to link the importance of roles more closely to these capabilities andcompetencies and the business strategy.

The Solution

Three human capital models are introduced that form a basis for addressing the above

people challenges and developing a whole of workforce strategy that is aligned with the

business strategy.

Those who can effectively translate their business strategy into an actionable human

capital strategy can drive a new kind of competitive advantageone that is extremely

difficult for others to imitate.


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Table of Contents

Page

Executive Summary .............................. .................................. .................................. . 2

The Workforce/Talent Management Challenge ................................................. 4

What is the Most Critical Function of HR Now?....................... ........................ 4

The Limitations of Workforce Planning .............................. ................................ . 5

Do You Really have a Workforce/Human Capital Strategy? ........................ ... 6

Differentiation/Segmentation: A Fundamental Concept ........................... ........ 7

Why Traditional Approaches to Workforce Segmentation are Limited ..... 7

Model 1: A Skills Based Workforce Segmentation Model ............................. . 8

Failing to Differentiate the Workforce: The Adverse Consequences! ...... 12

Model 2: Organisational Capabilities and Competencies ............................... 13

What is Human Capital? .............................. ................................. .......................... 16

Model 3: The Five Ways of Increasing Human Capital ............................... ... 16

The Essence of What Constitutes a Workforce Strategy ............................ 17

The Benefits for CEOs and HR Professionals ........................... ....................... 18

References ................................................................................................................ 20Appendix A: The Skills Segmentation Questionnaire (SSQ) ........................ 21

Appendix B: About the Workforce Strategic Plan Pack ................................ 23

About the Author .............................. .................................. .................................. . 25

About Advanced Workforce Strategies ............................... ............................. 26


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The Workforce/Talent Management Challenge

The No 1 challenge now facing many organisations, and even more so over the next decade and beyond, is the

strategic management of their workforce (including talent). The demographic crunch of a rapidly ageing

workforce, combined with the current and ongoing talent and skills shortage, are but two of a number of

factors contributing to this challenge. Additionally the workforce has become more mobile and diversified.

Employees now come in all shapes and sizes one size doesnt fit all!

Organisations now want to have their cake and eat it. The challenge for them is captured in the following

three questions:

How to maximise the flexibility of their workforce (i.e., minimize risk)?

How to maximize the commitment and performance of their people?

How to attract, develop and retain valuable skills?

Configuring and then managing a workforce that is accessible, skilled, motivated and efficiently deployed will

increasingly be a key differentiator of business performance and financial success.

Dealing with this complexity requires a more sophisticated approach to the management of human capital.

Furthermore this people management challenge is not simply a HR issue. It is a business strategy issue where

Company Directors, CEOs, CFOs and Executives must inevitably be involved.

What is the Most Critical Function of HR Now?

There is now a great deal of evidence that the contribution of people is the largest driver of organizational

performance (CIPD, 2003).

Too often business goals, plans and strategies are developed without any accompanying detail describing how

people will be managed and assisted to deliver and achieve what the business has set out to do. Human capital

costs account for between 30-80% of the total cost of a business (depending upon the industry sector). Despite

the overwhelming evidence that the people factor is now regarded as the single most important driver of

business success, according to surveys of CEOs, it is one of the least effectively managed corporate functions.

Many HR functions are typically disparate, yet integration multiplies business value. Often workforce strategies

(if indeed they exist) are misaligned with business strategies.

Companies have revamped practically every business process in their search for competitive advantage, apart

from the area of human capital. Many organizations are still lacking the concepts, strategies, models and

measures that matter most to effectively manage their most vital intangible asset their people. The same levelof rigor as that which applies to managing and reporting on financial processes, should be applied to human

capital.

However an understanding of human capital, including the quality of reporting on it and what actually

constitutes a workforce/human capital strategy, generally lags well behind that of other key assets of the

business. HR has been a maligned service provider, but their most critical function now is to focus sharply on

the interface and alignment between workforce and business strategies.


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The top skill highlighted as a requirement for future HR leaders was the ability to connect HR initiatives to

strategic priorities of the organisation, cited by 76% of the respondents from 300 organisations (Human Capital

Management Trends, 20012, Aberdeen Group). Development of this skill involves, amongst other things:

An understanding of which roles are critical to business growth and performance;

Providing the right HR data to stakeholders to understand measure and monitor the effect of talent decisions

on the business; and

Creating differentiated hiring, development and retention plans for critical talent and critical roles.

The Limitations of Workforce Planning

Whilst most organizations have bundles of HR policies, and many may undertake workforce and succession

planning, together with talent management, very few have developed and documented a workforce or human

capital strategy. At the heart of such a strategy is a focus on:

Linking the importance of roles to the business strategy, including strengthening organizational critical

capabilities and core competencies; and

Workforce segmentation and role differentiation, which is the key to treating an organisations

workforce assets as a portfolio that can be analysed and managed.

Typically workforce planning is about primarily filling roles. It is tactically focused on head counts and time lines,

undertaken for short-term budgeting purposes by HR and not necessarily owned by the business. As such, it

neglects to consider the broader strategic workforce questions. For example, it may be the case that some

roles that are linked to non-core activities could or should be outsourced.

Furthermore some roles will be much more critical to the execution of the business strategy than others.

Other roles may require significant initial investment in training and development (e.g., defense forces, train

drivers, casino dealers). This being the case, different attraction, engagement and retention strategies will apply

to ensure the optimum use of available resources.

In summary, some of the key overriding strategic workforce/talent management questions that workforce

planning doesnt typically address include:

How should the workforce best be segmented (e.g., on a hierarchical or job level basis, or on some other

basis)?

How do roles and their level of importance link to the business strategy?

How do various roles contribute to the strengthening of organizational critical capabilities and core

competencies?

What are the critical roles in the organisation, and is there a defined methodology for their classification

as such?

What roles should or could be outsourced, and what is the rationale for such decisions?

What roles should be filled with people readymade from the market (i.e., minimal investment in training

and development)?


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What roles should people be developed from within?

How should attraction, engagement and retention strategies and levels of investment in people differ for

these various roles?

It is contended that there is a need to move beyond workforce planning to a more strategic and

comprehensive whole of workforce/talent management approach that addresses the above workforcequestions.

Do You Really Have a Workforce/Human Capital Strategy?

Complete the following ten questions about your organization to determine whether you really do have a

workforce/human capital strategy:

1. Most positions are paid at the market midpoint. T __ F __

2. Recruitment for all roles has the same assessment process. T __ F __

3. The Employment Value Proposition (EVP) is the same for all roles. T __ F __

4. A one size fits all approach applies to the application of all of our people management policies and practices to

various roles. T __ F __

5. Turnover is only reported for the workforce as a whole. T __ F __

6. The workforce is segmented on an organizational level or job/salary level basis. T __ F __

7. The performance management system/forms are the same for all roles. T __ F __

8. There is no defined methodology for identifying Critical roles. T __ F __

9. There is no defined methodology for determining which roles are outsourced or considered for potentially

outsourcing. T __ F __

10. There is little emphasis on the link between various roles and their importance, to the business strategy and the

strengthening of organizational critical capabilities and core competencies. T __ F __

Your total score:

Number of True answers: ___ Number of False answers: ___

What does your score mean?

If you answered True to only one or two of these questions, then you are well on the way to developing a

workforce/human capital strategy.

If you answered True to three or more of these questions, you are unlikely to be differentiating your

workforce roles sufficiently. As such, it is very unlikely that you have developed a comprehensive and effective

workforce or human capital strategy. Consequently you are unlikely to be making optimal people management

decisions.


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Differentiation/Segmentation: A Fundamental Concept

Just as a marketer segments or stratifies their clients, products and services according to their value, the same

principles should apply to segmenting the workforce. As indicated earlier, segmentation is the key to treating

an organizations workforce assets like a portfolio that can be effectively analyzed and managed.

The choice of segmentation model is therefore fundamental to developing a comprehensive,

rational and consistent approach for addressing the people management challenges ahead. It

should underpin the management of the workforce/talent, and hence the development of a workforce or

human capital strategy, including decisions involving:

Outsourcing, buying ready-made or developing people from within;

Determining critical roles;

Differentiated approaches to attraction, engagement and retention including different Employment

Value Propositions (EVPs);

Differentiated levels of investment in employees; and

The reporting of human capital data (e.g., cost of turnover).

Why Traditional Approaches to Job Evaluation and

Workforce Segmentation are Limited

The conventional approach to job evaluation is static, inflexible and primarily focused on internal

equity.There is a need to move away from conventional approaches to determining job importance

and job-worth to a model that focuses on future value creation, strategic job worth and competitive advantage.

(Becker, Huselid & Beatty, 2009)


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Most organizations adopt a hierarchical model of segmenting their workforce (i.e., based on salary or job level

or job evaluation considerations). Whilst this model may be suitable for defining reporting arrangements and

determining limits of authority it:

Doesnt necessarily determine attraction, engagement and retention strategies; and

Doesnt determine how roles are linked to the business strategy, which roles are more closely linked to

developing critical capabilities and core competencies, and hence which roles are more important to

business outcomes.

To a certain extent, salary levels are a reflection of market forces and internal equity considerations, and may

not necessarily reflect the true value of roles contribution to the business (i.e., value creation, competitive

advantage).

Model 1: A Skills Based Workforce Segmentation Model

It is contended that the workforce should be best segmented on a skills basis. After all, skills are the newcurrency in the 21st century workplace! Advanced Workforce Strategies has adapted a skills based workforce

segmentation model based on the work of Lepak and Snell (1999, 2002). This model takes into account both

the value and uniqueness of skills relative to the role.

Based on this model, there are four role types:

1) Criticals

2) Professionals, skilled and Semi-Skilled

3) Doers

4) Specialists

Each of these role types has a different psychological contract (or employer/employee relationship or

deal/Employment Value Propositions {EVP}), with different levels of investment in employees and different

turnover cost implications.


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The Skil ls Based Workforce Segmentation Model

Valuable ski l ls

Valuable skills are those skills that improve the efficiency and effectiveness of the organization, exploit market

opportunities, and/or neutralize potential threats. Valuable skills can be created in eight ways through:

1) Increasing revenue/sales

2) Improving stakeholder relations including customer satisfaction

3) Enhancing productivity/reducing costs

4) Enhancing quality

5) Fostering innovation

6) Enhancing organisational capability

7) Enhancing / protecting the firms reputation

8) Enhancing financial performance (e.g., ROI, cash flow).

Unique ski l ls

Unique skills are rare and specialized, or organizational specific. They are unlikely to be found in the open

market, hard to replace, and hard for competitors to imitate or duplicate. These skills need to be nurtured


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over time, given that they are not developed and acquired overnight. Firms are most likely to have to invest in

the education, training, and development of these skills.

Examples of Roles in the Ski l l s Based Workforce Segmentation Model

The Ski l l s Based Workforce Segmentation Model and the management of

Human Capital

The above model provides a rational basis for differentiated HR policies and practices (including attraction,

engagement and retention strategies, psychological contracts/Employment Value Propositions (EVPs) or

deals), and the identification of critical roles those roles that incorporate higher skills value anduniqueness.

Refer to the diagrams on the following pages for how these HR and Recruitment policies and practices may

vary according to where the role fits in a this four quadrant model.

Different turnover multiples apply for different segments. The cost of turnover is the calculated based on the

salary level of the job multiplied by the turnover multiple for the job in question.

For example, the cost of turnover for a person in a Critical role on a salary package of $200k is $200,000 x 2.5

= $500,000.


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Whereas the cost of turnover for a person in a Doer role on a salary of $60k is $60,000 x 0.5 = $30,000.

So 15 Doers leaving at a total cost of $450,000 would still be less costly than one Critical leaving.

Note. Advanced Workforce Strategies has developed the Skills Segmentation Questionnaire (SSQ) for analyzing and

plotting roles according to this model. Refer to Appendix A for further details.

HR Pol ic ies and Practices by Workforce Segment/Quadrant

In the above diagram:

Appraisal Systems and Compensation/Reward Systems refer to the Engagement and Retention of human

capital; and

Career Advancement and Training and Development refer to the Development of Human Capital.

Refer to the Model 3 later in this white paper where Engagement and Retention, and Development of human

capital, comprise two of the five ways of increasing human capital.

The above Model 1 also forms the basis for determining make versus buy employment decisions with roles

in quadrants 2 and 3 potentially able to be outsourced (i.e., Borrowing human capital which is another of one of

the five ways of increasing human capital), subject to satisfying a range of other criteria.


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Recruitment Strategies by Workforce Segment/Quadrant

The above diagram refers to the Acquisition of human capital, which is also one of the five ways of increasing

human capital (refer to the Model 3 later in this white paper.)

Failing to Adequately Segment and Differentiate the

Workforce: The Adverse Consequences!

Properly thought through, integrated, and appropriately applied people management strategies and practices,

customized to particular organizational circumstances, are the most powerful driver of sustainable success.(Lepak & Snell, 1999)

As alluded to earlier, dealing with the complexities of people management in the 21 st Century workplace

requires a more sophisticated and hence differentiated approach. Roles differ in their potential to add value,

and contribute to business success. Not everyone is equal! Not all employees possess knowledge and skills of

equal strategic importance.

A one size fits all approach to people management is a recipe for mediocrity (e.g., paying all employees at say

the 60% range of the market). While simplistic and convenient, such a lack of insight is likely to result in

muddled, inconsistent and poor people decisions, the adverse consequences of which could include:


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A waste of resources (e.g., could include paying the wrong people too much and the right people too

little);

Locking in low performers by over delivering, and pushing out high performers by under delivering on

expectations;

Operational inefficiencies and poorer performance through having inexperienced people in important

roles;

Lack of labour flexibility;

Increased turnover.

Model 2: Organisational Capabilities and Competencies

Every organization operates in a unique competitive situation. In order to implement its strategy and achieve its

goals, each organization must develop and build capabilities and competencies that are critical to strategicintent. Either a firm performs:

Different activities from its rivals (which require unique skills), or

Similar activities to rivals in more efficient and effective ways (which relates more to valuable skills).

A me to strategy may keep a firm in the game but it isnt the basis for long-term, above average performance.

A Three Level Model of Capabil it ies/Competencies

Three types or levels of capabilities and competencies are presented in the above model, in order of their

importance:

1) Differentiating or critical capabilities (of organizations);


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2) Core competencies (of organizations);

3) Work competencies (of individuals and teams).

Differentiating or Critical Capabilities

A capability may be viewed or defined as the sum of expertise and capacity. Differentiating or criticalcapabilities:

Differentiate an organization from its competitors (i.e., its point of difference);

Characterize the organization to their customers;

Contribute significantly to success.

Capabilities thus represent what the organization is known for, what it is good at doing, and how it patterns its

activities to deliver value. These capabilities define many of the intangibles that investors pay attention to,

including the company brand to which customers relate to, and the culture that shapes employee behavior.

They become the identity of the company and the key to implementing the business strategy.

Differentiating or critical capability(s) are therefore vital to the success of an organization because they

constitute a key source of sustainable competitive advantage.

Core Competencies (of the organization)

Core competencies directly relate to the key activities or functions that the organization undertakes in

conducting its business. They are a narrower or more specific concept than the previous more global critical or

differentiating capability(s).

Developing and strengthening these capabilities and core competencies should therefore constitute a keybusiness focus or priority. In so doing, it is important to identify the key drivers that underpin the development

of these capabilities and competencies.

Case Study: A Water Authority

An example of the critical capabilities, core competencies and their key drivers (of the organization) is provided

below for a water authority.

You will note that these main drivers directly relate to the eight skills elements that comprise valuable skills in

Model 1. Thus the combination of Models 1 and 2 provide a rational basis for linking the importance of roles to

the business strategy. Roles that incorporate more of those key drivers, whatever quadrant they may lie in,

become more important in achieving the business strategy, and hence should receive more concentrated

attention in terms of selection and recruitment, development, performance improvement and retention.


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XYZ Water Authority: Critical Capabilities, Core Competencies and their Main Drivers

XYZ Water Authority operates a number of dams and pipeline facilities to supply water to farmers in the

ABC region of Australia.

Critical Capabilities:

Balancing investment in storage and water distribution efficiency: Main drivers are costs, stakeholderrelations, and financial performance

Achieving equality of water supply to consumers, at a competitive cost: Main drivers are costs, andstakeholder relations

Core Competencies:

Planning of water supply requirements and distribution: Main drivers are costs, stakeholder relations,innovation, and financial performance

Design, construction and maintenance of dam storage facilities: Main drivers are costs, stakeholderrelations, innovation and financial performance

Design, maintenance and operation of efficient water distribution systems and pipelines: Main drivers arecosts, stakeholder relations, innovation and financial performance

Drafting of water supply contracts, negotiations with consumers (farmers), and developing qualityrelationships with the same: Main drivers are sales & revenue and stakeholder relations

Financial planning and control concerning the costs, revenues and capital works associated with waterstorage and distribution: Main driver is financial performance

Based on the above example, the drivers that feature more prominently and are therefore more important to

the business (both critical capabilities and core competencies) are:

Costs;

Stakeholder relationships;

Innovation; and

Financial performance.

Those roles that incorporate these drivers (refer to the Skills Based Workforce Segmentation Model and in

particular, the eight skills value elements) are therefore likely to be more important to the achievement of

business outcomes.

Furthermore depending upon the business strategy, some core competencies will be more important than

others at any particular time in the business environment or cycle. For example, it may be the case that a key

business strategy of XYZ Water Authority is to increase its dam storage capacity, given recent water

shortages. This being so, those roles directly involved in key aspects of implementing and achieving this business

strategy (e.g., sourcing suitable sites, planning approvals, design and construction of the dam, etc.) become

more significant (including the people occupying those roles).

We shall now turn our attention to the subject of human capital.


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What is Human Capital?

Human capital is one of the least understood, measured and analysed investments. It is a weak link in the chain

of corporate investments.

Human Capital = Employees Knowledge + Skills + Experience + Initiative

Human capital includes the knowledge, skills, experience and initiative possessed by employees. Human capital

has economic value to firms it directly impacts upon organizational productivity and profitability. More

recently the term human capital has been applied to selection, training, compensation, and human resource

(HR) management practices in general (Cascio, 1991).

Model 3: The Five Ways of Increasing Human Capital

There are five ways an organization can build its human capital, viz.:

1) Acquisition (recruitment and selection)

2) Engagement and retention (HR and people management policies and practices)

3) Development (learning and development)

4) Borrowing (using consultants, contractors, outsourcing)

5) Merger/Acquisition.


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Note. The most significant development in the composition of the workforce in Australia over the past 15 years or so has

been the shift to outsourcing and the contingent workforce (i.e., borrowing). This is clear demonstration of organizations

seeking increased flexibility of their workforce, minimizing risk and focusing more on their core activities.

The ultimate objective in building human capital is to enhance organizational performance and sustainability

whilst maintaining flexibility, all with an optimum level of investment.

In the Skills Segmentation Model 1, we referred to differentiated HR policies and practices in three of these

ways of increasing human capital (i.e., Acquisition, Engagement and Retention, Development).

The Essence of Developing a Workforce Strategy

No business can do everything. Even if it has the money, it will never have enough good people. It has to set

priorities. The worst thing to do is a bit of everything. This makes sure that nothing is accomplished. (Peter

Drucker)

A common definition of a workforce strategy is having the right people in the right roles at the right time.However what is being advocated here extends beyond this definition to include having the optimal level of

investment in various roles to maximize business outcomes.

The essence of this integrated workforce strategy approach involves these three key considerations:

Strengthening capabilities and those core competencies deemed to be more important toperformance and the achievement of the business strategy;

Strengthening those key drivers that underpin the above capabilities and competencies;

Investing in those roles that are more closely linked to these key drivers (including critical roles) and

focusing on maximizing the performance of people in those roles.

Dont try to boil the ocean! Focus, focus, focus.

The thrust of this approach (i.e., focus on enhancing critical capabilities and core competencies) is supported by

recent research. A Duke client study found that HR professionals are shifting their focus from individual

competency to organizational capability. McKinsey also looked at the future and found that capabilities will

become more important than individual competencies.

Refer to the Advanced Workforce Strategies Model for aligning workforce and business strategies on the

following page.


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Advanced Workforce Strategies Model:

Al igning Workforce and Business Strategies

The Benefits for CEOs and HR Professionals

CEOs and HR Professionals are under increasing pressure to demonstrate to board members and shareholders

how they are managing their most vital intangible asset. At the same time, HR is struggling to exert the

required influence and gain a seat at the table.Consistent with an increased focus on managing risk, corporategovernance and people, it has been argued that organizations need to develop a workforce / human capital

strategy. This strategy should be documented in the form of a Workforce Strategic Plan.

3. Organisational Structure Review and Information Gathering

Meetings with Business Unit Leaders and their teams

Determine future requirements (head counts and skills)

1. The Business Strategic Plan

Mission, values, vision, goals & objectives, business strategy

2. Capabilities/Competencies (Model 2) Critical/differentiating capabilities

Core competencies (including those more important to the business strategy)

Key drivers and their relative importance

4. Workforce Segmentation: Role Analysis (Model 1) Critical Roles

Professionals, Skilled & Semi-Skilled

Doers

Specialists

Role outsourcing analysis

Relative importance of roles based on skills value and weightings

5. Investment in the More Important Roles

Investment in Critical Roles and those other roles considered to be more

important to the achievement of the business strategy


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In doing so HR professionals will:

Develop deeper workforce insights, differentiate roles (including the identification of critical roles,

specialist roles, roles suitable for outsourcing, etc.), and link roles and workforce strategies more

closely to the business strategy;

Develop a clearer conceptual framework for reviewing, refining and maximising the effectiveness of

HR practices in their organisation and mitigate risk;

Unlock the potential and surface the hidden aspects of their workforce that may be impeding

performance and profitability;

Fully engage their CEO and Executives, and significantly elevate their influence; and

Move from cost center to strategic partner and establish strong and enduring relationships with their

business partners.

Such a Workforce Strategic Plan constitutes an essential blue print for any CEO, his/her executives, and HRDirectors/Managers and Professionals. It constitutes the missing link in talent/workforce management.

Those who can effectively translate their business strategy into an actionable human capital strategy can drive a

new kind of competitive advantage one that is extremely difficult for others to imitate. Such a plan should

document how it is managing, or is intending to manage, its most vital intangible asset its people.

Note. Advanced Workforce Strategies has developed a Workforce Strategic Plan Pack (refer to Appendix B).


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References

Beatty, R. W., Becker, B. E., & Huselid, M. A. (2009). The differentiated workforce: Transforming talent into

strategic impact, Boston, Massachusetts: Harvard Business Press.

Cascio, W. F. (1991). Costing human resources: The financial impact of behaviour in organisations, Boston:

PWS-Kent.

CIPD (2003). Voices from the boardroom. CIPD Press Release, 18 January, 2003.

Lombardi, M., & Laurano, M. (2012). Human capital management trends: Managing talent to lead organizational

growth. Aberdeen Group.

Lepak, D. P., & Snell, S. A. (1999). The human resource architecture: Toward a theory of human capital

allocation and development. Academy of Management Review, 24(1): 3148.


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Appendix A: The Skills Segmentation Questionnaire (SSQ)

and Plotting of Roles

Note. Access to the SSQ (online) and associated plotting of roles is only available in the Advanced Version of

the Develop a Workforce Strategic Plan Pack.

Advanced Workforce Strategies has developed a questionnaire the Skills Segmentation Questionnaire (SSQ)

a 49 item questionnaire that enables roles to be analyzed, classified and then plotted according to the Skills

Based Workforce Segmentation Model.

The SSQ also allows for weightings to be applied to roles for the eight skills value elements, depending upon

their relative importance to the business strategy.

The Benefits of the SSQ

As indicated earlier in the skills based workforce segmentation model, various jobs or roles within an

organization can be classified according to four possible employment roles or skills quadrants:

Criticals;

Professionals, Skilled or Semi-Skilled;

Doers; and

Specialists.

Using the SSQ, any role in an organization can be analyzed and plotted with this generic tool, so comparisons

can be made regarding the importance and relativities of the role. Thereafter, appropriate HR strategies can be


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applied to that role.

The Structure of the SSQ

The SSQ comprises four components:

1) Assessing skills value (includes the eight skills value elements referred to previously) relative to the

role;

2) The impact of these skills on the provision of the products and services to external customers (i.e.,

localized or widespread);

3) The optional weighting of each of the eight skills elements according to their importance to the

business strategy; and

4) Assessing skills uniqueness (includes both specific and generalized unique skills) relative to the role,

as reflected in time and or intensity of training to acquire these skills.

Thus the SSQ has more of an external orientation in respect of the provision of products and services to

external customers (and the relevant skills), which is the very basis for the existence of the organization.


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Appendix B: About the Develop a Workforce Strategic Plan

Pack

Advanced Workforce Strategies has developed a Develop a Workforce Strategic Plan Pack.

Based on latest research and contemporary thought leaders, this Pack incorporates the integration of six key

human capital concepts and models that include:

1) The five ways to build human capital

2) The three layered model of differentiating capabilities, organisational core competencies through tojob competencies

3) Segmentation of the workforce and differentiation of roles according to a skills based model (i.e.,skills value and skills uniqueness)

4) Profiling Employment Value Propositions (EVP) for defining job roles, based on the concept of thePsychological Contract

5) The four holy grail workforce measures of engagement and retention

6) The three types of Human Capital Data and reporting of this data in a compelling format.

This Pack provides concepts and value on an entirely different plane:

Going past traditional quantitative workforce planning to provide a strategic, actionable view to the

future;


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Providing an integrated framework to plan and implement new solutions;

Linking the importance of roles to strengthening the differentiating capability(s), core competencies

and the business strategy including differentiated policies and practices according to various role

categories or classifications;

Providing the necessary workforce intelligence, derived from making more sense of your HR data

(both current and proposed), thus leading to more informed decision making and better outcomes;

and

Providing the strategy, methodology, and tools to deliver the necessary insight to more effectively

manage an organisations most vital intangible asset.

This Pack includes an extensive array of Guides, Samples, Templates, Tools and Resources as outlined below.

There are two versions of this Pack:

1) The Basic Version, which is able to be purchased and downloaded online; and

2) The Advanced Version, which includes access to the SSQ questionnaire and plotting tool andconsultancy input including an initial workshop.

For further information, go to the Advanced Workforce Strategies web site at:www.advancedworkforcestrategies.com

or contact Advanced Workforce Strategies at:

[email protected]

What HR Managers say about the Workforce Strategic Plan Package

As one of the fastest growing shires in Australia, we recognised that we had to adopt a different

approach to managing our workforce in the future, including workforce planning. The concepts, models

and tools that form part of Advanced Workforce Strategies Develop a Workforce Strategic Plan Pack

have proved to be an invaluable resource, together with the valuable consultancy input and assistance

from Colin Beames. The Workforce Strategic Plan that we have developed for Cardinia Shire Council

has had buy-in from executives and provided us with new and deeper workforce insights. It has

enabled us to identify key risks and develop targeted action plans to address those risks. This

Workforce Strategic Plan now underpins all of our people management decisions going forward.

Di Ashton, Manager Organisational Development, Cardinia Shire Council


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About the Author

Colin BeamesBA (Hons) Qld, BEng (Hons), MBA, MAPS.

Colin Beames is an author and thought leader in workplace trends and human capital, with a deep and

expansive knowledge of these subjects. In his first career life, Colin worked as an engineer in senior

management and consulting roles in the mining and resources sectors. Then in the early 90s, he made a mid-

life career change to organisational psychology.

The topic of Colins psychology honours thesis was mid-life career change, and his Master of Business

Administration included a dissertation on psychological contracts in the workplace and the development of the

Workplace Relationship Development Indicator (WRDI) diagnostic employee engagement and retention tool.

His organisational consultancy experience includes assignments in Australia and overseas, both in the privateand public sectors, across a wide variety of industries. More specifically, these assignments include: assessment

centres, career development, change management, coaching, development and commercialisation of diagnostic

surveys including administering and reporting on the same, employee engagement and retention, high

performance teams in alliances and large multi-disciplinary projects, HR, human capital measurement, M/A,

OH&S, organisational reviews and development, psychometric testing, selection and recruitment, start-ups,

strategic workforce planning and business improvement, talent management, and TNAs.

Apart from developing and commercialising the Workplace Relationship Development Indicator (WRDI)

diagnostic survey tool, Colin has also developed and commercialised a number of other diagnostic survey tools

(all based on a model of the psychological contract applied to different contexts), and other HR tools and IP.

He has written and published two books:

Aligning Workforce and Business Strategies: Mobilising the 21st Century Workforce.

Transforming Organisational Human Capital: Emerging Stronger from the GFC and Beyond (now in its

3rd edition). In this book, Colin examines emerging trends of management and organisational studies

over the past two decades and how these can be harnessed to guide management practice and improve

organisational performance.


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workforce strategic planning

Documents

Transcript of workforce strategic planning