Business Case for�Strategic Workforce Planning
What is it?
Based on our extensive research on Strategic Workforce Planning, we have created a presentation that you can use to convince stakeholders that this approach makes sense at your organization. You can customize the presentation based on your organizational context.
The presentation includes the following sections:
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*Additional information is included in the appendix.
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How to Use This Presentation
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Business Case for Strategic Workforce Planning
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© 2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This presentation, including all supporting materials, is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential, proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
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Roadmap
Why We Should Do This
Mitigating Potential Challenges
Our Proposal
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Summary of the Case
Proposal: Implement a strategic workforce planning approach to drive current and future workforce effectiveness in light of business priorities.
CURRENT SITUATION
PROBLEM
PROPOSED SOLUTION
Traditional Workforce Planning is Ineffective in Meeting Changing Talent Needs
Engage in Strategic Workforce Planning to Maximize Current and Future Talent Needs and Effectiveness
Rapidly Evolving Business and Uncertainty has Changed Workforce Dynamics
Frequent unfamiliar organizational changes, and the uncertainty posed by technological, generational and social shifts make it challenging to plan for the future talent needs of the organization.
A strategic workforce plan—differentiated by its broad scope and long-term orientation—is both proactive and forward looking. Effective strategic workforce planning helps organizations better prepare for and adapt to change.
Benefits of Strategic Workforce Planning:
Most organizations emphasize shorter-term budget and head count forecasts as business leaders are under tremendous pressure to hit short-term targets and focus on immediate staffing needs.
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Evolution of Strategic Workforce Planning
Strategic Workforce Planning
A long-term blueprint to ensure workforce optimization—a holistic strategy encompassing recruiting, developing, managing, retaining and redeploying talent to maximize the effectiveness of both the current and future workforce in light of strategic business priorities.
Continuum of Workforce Planning
56%
10%
23%
10%
Source: Gartner 2019 Future HR Effectiveness Survey
Percentage of organizations using following workforce planning approaches
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Roadmap
Our Proposal
Mitigating Potential Challenges
Why We Should Do This
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Business Needs are Changing
Source: Gartner (March 2019)
1 in 4 of customers have considered switching their suppliers in the past 30 days; among those who considered switching, 48% followed through.
Faster Organizational Change
Technology Driven
Demanding Customers
Evolving Talent Needs
Increased Competition for Talent
More Employee Expectations
39% of all job-posting activity focused on competing for just 29 types of jobs (out of 9,000 different positions).
37% of the skills employees use
today were learned in the past year.
77% of employees expect easier options for completing routine tasks (compared to 3 years ago).
73% of business executives believe that organizational changes will occur faster.
67% of business leaders believe their company must become significantly more digital to maintain competitiveness.
19% of skills that managers learned in 2016 were no longer relevant in 2017.
Characteristics of Today’s Complex and Rapidly Evolving Business Environment
Today’s business environment is defined by characteristics that call for speed, responsiveness, and customer-centricity to be successful and to create a competitive advantage.
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Jobs are Evolving Rapidly, Widening Talent Gaps
Due to the changing business needs and technological and social landscape, organizations’ skill requirements are evolving and emerging which create a talent gap for future critical roles.
Percentage of Job Postings Whose Required Skills Changed From 2013 to 2017
Source: Gartner Talent Neuron.
Projected Critical Talent Gap
Aggregate Supply and Demand for Critical Talent – Illustrative
Source: Gartner
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Tangible Benefits of Adding “Strategic” into Workforce Planning
Strategic workforce planning helps create competitive advantage, mitigate strategic risks and drive future-focused workforce allocation decisions to set leaders up for success in long-term.
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Roadmap
Our Proposal
Why We Should Do This
Mitigating Potential Challenges
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Potential Concerns and Proposed Solutions
Difficulty Interpreting Business Strategy
Organizations struggle to transform business and talent strategic objectives into an actual workforce plan.
Potential Concerns
Workforce Plans Too Static for Changing World
Organizations fear their workforce plans will quickly become outdated.
Talent Supply Outside of Organization's Control
Organizations cannot control the supply of talent and are unable to prevent disruptions to the labor market.
Integrate Targeted Workforce Plan into the Strategic Plan
Participate in setting business objectives and translate them into talent objectives and risks. Create a workforce plan that integrates the strategic objectives and addresses the talent risks.
How We Can Address Them
Conduct Scenario Planning to Assess Evolving Talent Needs
Get leaders’ inputs on the business’ current state and future strategic priorities. Create multiple scenarios to assess the impact of technological, social and labor changes on talent needs.
Use Leading Labor Market Indicators to Analyze External Trends
Use future-facing indicators while analyzing existing data to predict talent availability and supply and prepare for changing market conditions.
Unsure Where to Focus Resources
Organizations do not know where it is best to deploy their limited resources for efficient workforce planning.
Prioritize Critical Business Units for Selective Workforce Planning
Determine the business units with high growth rate and organizational priority alignment and prioritize those for selective workforce planning.
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Solution 1: Conducting Scenario Planning to Assess Evolving Talent Needs
Analyze the impact of multiple potential scenarios to identify and prepare for technological, social and labor changes that could significantly shift talent needs.
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Solution 2: Using Leading Labor Market Indicators to Analyze External Trends
Thomson Reuters makes smarter use of existing data sources rather than identifying new sources to understand the future of the labor market and better prepare for changing market conditions.
Case Study: Thomson Reuters Industry: Mass Media Revenue (2016): US$ 11.17 Billion Employees (2017): 45000
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Solution 3: Prioritizing Critical Business Units for Selective Workforce Planning
Case Study: American Red Cross Industry: Humanitarian Aid Sales (2014): US$2.9 Billion Employees (2014): 25,000
American Red Cross identifies critical business units with high growth rate and alignment with organizational priorities and conducts workforce planning for those critical business units.
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Solution 4: Integrating Targeted Workforce Plan into Strategic Plan
Case Study: Alpha (Pseudonym) Industry: Consumer Products Revenue (2006): $10 Billion Employees (2006): 50,000
Alpha Company integrates human capital risk analysis into workforce planning, builds decision rules for when workforce planning is mandated. It then crafts targeted workforce plan that addresses the identified talent risks and integrates the workforce plan into the strategic business plan.
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