Tool 9. Sample Workforce Planning Policy
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1 Tool 9 Sample Workforce Planning Policy 9.1 Introduction Any business plan deals with resource requirements, and, just as financial requirements need to be addressed, the business plan needs to ensure that the appropriate workforce mix is available to accomplish plan goals and objectives (SHRM, 2010). To ensure that Workforce Planning becomes part of the way in which strategy is designed and implemented in the organisation, it is sometimes necessary to introduce a formal policy. 9.2 The aim of Tool 9 Tool 9 aims to assist the HR professionals responsible for Workforce Planning with the design of a Workforce Planning Policy for their organisations. 9.3 Description of Tool 9 What is it? How to use it When to use it A sample Workforce Planning Policy Review the sample policy Decide which elements are relevant to your organisation Customise the selected elements to reflect your organisation s situation During the ensuring organisational readiness phase, as part of designing policies and procedures. It is also important in communicating your organisation s commitment to Workforce Planning Obtain input, approval and buy-in from the relevant stakeholders Educate all relevant stakeholders in the approved Workforce Planning policy Review the policy on a regular basis 75
2 Workforce Planning Toolkit 9.4 Links to other tools Tool 2: Clarify the rationale for the Workforce Planning initiative Tool 8: Clarify roles and responsibilities of all involved in Workforce Planning 9.5 Tool 9: Sample Workforce Planning Policy Your organisation s logo Workforce Planning Policy Revision 1 Drafted by: Approved by: Recommended by: Name Signature Date 1. Introduction The achievement of Organisation X s strategic objectives relies on the attraction, development and retention of high quality staff. A range of factors, including a partly inexperienced workforce, linked to an ageing workforce, skills shortages, changes to legislation, the need to function with optimal efficiency, budgetary tightening, increasing competition and technological innovation, impact on the organisation s capability to be competitive in attracting, developing and retaining high quality staff to meet its requirements. There is a compelling need for Organisation X to be proactive in addressing these challenges and avoid reactive management of its human resources. Workforce Planning is therefore a critical step in planning and shaping the requisite workforce to ensure strategic goal achievement. It forms part of the strategic planning process of Organisation X and informs the strategic Human Resources plan. 76
3 Tool 9: Sample Workforce Planning Policy Through Workforce Planning, Organisation X is able to: Identify and document mission-critical occupations and competencies Identify capacity (numbers) and capability (competency) gaps between the current and future workforce Identify workforce strategies to reduce these gaps, that is, make decisions about structuring and deploying the workforce to best support the organisation s strategic goals Monitor and review the implementation and impact of these strategies. 2. Policy statement Workforce planning is an integral part of Organisation X s strategic management process. Organisation X has a policy that any strategic plan/business plan is complete only once it includes a Workforce Plan. All Divisions are responsible for meeting the Key Performance Indicators (KPIs) in their Business Plans, and Workforce Planning is one of the KPIs. Workforce Planning is an annual process to assist managers in identifying the capacity and critical capabilities required in their workforce to deliver against their business plans and position the organisational unit to best meet future requirements. All Human Resource activities are informed by the Workforce Plan(s). The expected outcome for Organisation X is an integrated Workforce Plan that identifies current and future workforce requirements and possible gaps, allowing the organisation to plan changes to its workforce management strategies and policies effectively, in order to develop a workforce profile that aligns with the strategic intent of the organisation. 3. Policy objectives This policy has the following objectives: To explain the basic building blocks of Workforce Planning in Organisation X To describe the various role players in Workforce Planning To explain the annual Workforce Planning cycle in Organisation X To ensure that all relevant stakeholders know how to approach Workforce Planning. 77
4 Workforce Planning Toolkit 4. Application This policy applies to all employees, managers and supervisors. 5. Definitions For the purposes of this policy, the following definitions apply: 5.1 Workforce Planning at Organisation X has two components: Strategic Workforce Planning entails the strategic alignment of the organisation s human resources needs with its strategic direction and focuses on critical and core roles in the organisation. Strategic alignment is accomplished by determining future workforce needs, analysing the current workforce, identifying the gaps between the present workforce and future needs, and implementing solutions to close such gaps, so that the organisation can accomplish its mission, goals, and objectives. Operational Workforce Planning entails the annual head-count planning for budgeting purposes. 5.2 Workforce Planning Implementation Reports detail the goals, processes, activities, milestones, etcetera, associated with a Division s workforce planning efforts, and are updated to reflect the results of plan implementation. 5.3 Human Resources describe the capacity (number) and the capability (knowledge, experience, and attributes) of employees required to meet the objectives of the organisation. 5.4 Competencies are a measurable pattern of knowledge, skills, behaviour, and other characteristics an individual needs to excel in work roles or occupational functions. 5.5 Knowledge identifies the bodies of information applied directly to the performance of a function. 5.6 Skills identify the developed capacities needed to perform a set of related tasks or activities. 5.7 Foundational competencies are the knowledge and skills important across all occupations in an organisation. 78
5 Tool 1: Determine the Drivers for Workforce Planning 5.8 Workforce gaps are areas where there is a difference between the required demand and actual supply of employees. 5.9 Strategic roles are critical to Organisation X s business strategy and are vital for achieving strategic goals. Future success is compromised if these roles are not filled with extremely capable people Core roles are critical to some aspects of Organisation X s strategy and relate to operational excellence. Current success is compromised if there are issues in critical roles Supportive roles are marginally critical to Organisation X s strategy and keep the internal operation working smoothly, such as IT, operations and HR roles. These work activities no longer differentiate Organisation X from its competitors Non-core/misaligned roles are not critical to any aspects of Organisation X s strategy and employees in these roles can be redeployed or outsourced. 6. Policy directives 6.1 During Organisation X s strategic planning process, Human Resources is considered along with all the other factors such as the value chain, finance, marketing and sales, operations, etcetera, during the internal and external analysis phase. It is also considered during scenario planning and strategy development and implementation. No Strategic plan or Divisional Business plan will be approved without the inclusion of a Workforce Plan. 6.2 Strategic Workforce Planning is done as part of the Strategic Planning Process, and Operational Workforce Planning is done as part of the budgeting process. These processes are intrinsically linked and inform one another. 6.3 Operational Workforce Planning targets the total workforce, whereas Strategic Workforce Planning focuses on strategic or core roles as identified by the management team, based on the strategic objectives of the organisation. 79
6 Workforce Planning Toolkit 6.4 Strategic Workforce Planning should always include: An analysis of the external factors impacting on the particular talent segment in terms of attraction, availability, development and retention An analysis of the current profile of the talent segment in the organisation An analysis of the current supply/demand internal and external to the organisation A forecast of the future internal and external demand and supply, based on strategic time-frames The identification of the gaps between future demand and supply in terms of capacity and capability The development and implementation of strategies to address the identified workforce gaps The monitoring and evaluation of the progress and impact of the implemented workforce strategies. 6.5 All departmental heads must submit Workforce Planning Implementation Reports on a quarterly basis. 6.6 Workforce Plans will incorporate information as generated by Organisation X s talent management processes and the talent management team will use the Workforce Plan as an input in all its activities. 6.7 All recruitment activities should be supported by the Workforce Plan. 7. Main responsibilities 7.1 Senior management team Conducts strategic planning Translates the strategy into strategic workforce needs and includes Workforce Plan in strategy Communicates Organisation X s strategy to all relevant stakeholders Holds all line managers accountable for Workforce Planning and reviews its effectiveness as part of the line manager s Key Performance Indicators 80
7 Tool 9: Sample Workforce Planning Policy Reviews the progress and impact of the Workforce Plan on a quarterly basis Identifies the key or core roles to be included in Strategic Workforce Planning. 7.2 Line managers Implement Strategic and Operational Workforce Planning in their areas of responsibility Identify critical or core roles and capabilities required to deliver on strategy in their areas of responsibility Review labour forecasting requirements Review labour supply impact Identify gaps Determine workforce needs and obtain annual approval to recruit, as well as approval for budget to address other workforce needs, e.g. development Implement workforce initiatives to address gaps between supply and demand. 7.3 Human Resources Provide the tools for managers to determine the supply and demand of critical/core roles for Strategic Workforce Planning, as well as for the total workforce in Operational Workforce Planning Provide profile and trend data from the Human Resources Information System Analyse information and coach managers in its application Facilitate the strategic discussion on workforce requirements Work with managers to determine the gap between supply and demand oversupply or undersupply of employees Assess the need to improve or develop HR programmes/initiatives to meet workforce supply e.g. mobility (multi-skilling, change in life circumstances, preferred life balance changes), development programmes, graduate/apprenticeship/traineeships 81
8 Workforce Planning Toolkit Advise managers of cost effective options, deliver and evaluate workforce programmes/initiatives. 7.4 Related forms and procedures Organisation X s specific Workforce Planning model Organisation X s specific Workforce Plan format Workforce Planning Implementation Reports Organisation X s specific Workforce Planning procedure. References Specific to Tool 9 Australian Catholic University Workforce Planning Policy Statement. [Online] Available: q=f&aqi=g-v1&aql=&oq=&fp=e4df4beae7dce3f3. [Accessed 17 February 2011]. Australian Catholic University Workforce Planning Procedure. [Online} Available: acu.edu.au/policy/personnel/workforce_planning/workforce_planning/. [Accessed 17 February 2011]. Civil Nuclear Constabulary Workforce Planning Policy. [Online] Available: police.uk/files/workforce_planning.pdf. [Accessed 17 February 2011]. National Oceanic and Atmospheric Administration NOAA Workforce Planning Policy. [Online] Available: [Accessed 17 February 2011]. The University of Western Australia Workforce Planning. [Online] Available: edu.au/hr/publications/workforceplanning [Accessed 17 February 2011]. 82
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