Workforce Planning: Connecting Business Strategy to Talent Strategy
description
Transcript of Workforce Planning: Connecting Business Strategy to Talent Strategy
Copyright © 2009. Korn/Ferry International Futurestep, Inc. All rights reserved.
Workforce Planning Connecting Business Strategy to Talent Strategy
Copyright © 2010. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Newman Group Overview
The Newman Group provides expertise and solutions to help companies align people, processes and technology and achieve success in all facets of talent management.
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Should we be breaking down the silos?
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Should we be breaking down the silos?
Strategy
Common Language (DNA)
Process Integration
Scalability (Tools)
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Talent Management Framework
5
SYSTEM ENABLEMENT
Support & Sustain
Alignment
Alignment
CORPORATE VISION, CULTURE & STRATEGY
TALENT STRATEGY, ORGANIZATION & WORKFORCE PLANNING
COMPETENCY DEFINITION & ASSESSMENT
Talent Acquisition Succession Planning Organization Design/Development
Leadership & Team Development
Executive Recruitment
Performance Management
Compensation Planning
Learning & Development
Employee Engagement &
Retention
Support & Sustain
Proc
ess
Com
mon
La
ngua
ge
Scal
abili
ty
Stra
tegy
Support & Sustain
COMPETENCY DEFINITION & ASSESSMENT
Com
mon
La
ngua
ge
Scal
abili
ty
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What is Workforce Planning?
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Workforce Planning Study
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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
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Top Challenges in Workforce Planning
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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
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The Workforce Planning Process
Define Objective
Project Demand
Evaluate Supply
Define the Gaps
Gap Management
Quantitative analysis of
critical employee data
elements
Headcount data
Financial data Overhead
Labor Training
Marketing data Critical roles for the go
to market strategy
Risk Mgmt/Budgeting data
Qualitative analysis to
determine key needs
Headcount needs
Financial needs Overhead
Labor Training
Marketing needs Critical roles for the go
to market strategy
Risk Mgmt/Budgeting needs
Scenario modeling
Gather the data from the
business plan or business strategy to
determine the direction of the workforce plan
Define and prioritize the
gaps between the qualitative demand and
the quantitative supply
Develop an action plan 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
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Workforce Planning Maturity Model
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Basic: Traditional WFP
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Further analyze T/O by category (voluntary/grade)
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Intermediate: Workforce Analytics
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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
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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
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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
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Scenario Modeling Example
Current Workforce Plan
Industry Trends
Political Developments
Labor Changes
New Business Strategies
Future Workforce Plan Impact
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Advanced: Strategic Workforce Planning
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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
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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
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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 Strate
gy
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
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Building Workforce Planning Capability
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COE Framework
Talent Management based on Applied Intelligence
HR Business Partners
Shared Services
Workforce Planning COE
You don’t have to make everyone an expert at WFP
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Process
Data Stabilization
– Ensuring standards & consistency
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Developing a strategic roadmap
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Technology Landscape
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Technology Landscape
External labor market: Policymap.com WorkforceLocator.org
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Getting Started
What is the annual business planning cycle?
What additional level of talent planning will have the most impact?
Who will embrace it?
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Q & A
Email: [email protected] Visit us online at: www.tng.futurestep.com