Attraction and Retention Series A focus on people and business. Workforce planning toolkit: Models, frameworks and processes Resource document 2
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1 Attraction and Retention Series A focus on people and business Workforce planning toolkit: Models, frameworks and processes Resource document 2 Issue 3 November 2008
2 Table of contents Introduction... 3 Description of workforce planning... 3 Benefits of workforce planning... 3 Workforce planning framework... 4 A strategic framework for workforce management... 6 Australian Public Service Model : Building business capability through workforce planning... 7 Framework for workforce planning... 8 Workforce planning models... 9 Department of Main Roads...9 Department of Public Works...10 Department of Natural Resources and Water...11 Office of Public Employment, South Australia...12 The synergies of planning Workforce ning Toolkit 2
3 Introduction The following resources include models, frameworks and processes for workforce planning. These resources provide many varieties of approaches which have been tested and are in operation in various agencies. Description of workforce planning Workforce planning is about developing an understanding of the make-up of the current workforce, the environment in which it works and will work in the future, and necessary skills, capabilities and aptitudes that will be required to achieve business outcomes in an ever changing environment. It provides managers with a framework for making informed staffing decisions in line with an organisation s mission, strategic plan and budgetary resources. Workforce planning is a means of integrating and giving meaning to many areas of human resource management that are often considered in isolation, such as attraction and retention, flexible work practices, succession planning, staff development, etc. Benefits of workforce planning The process of planning allows an organisation to: understand the present in order to confront the future stand back and provide an overview ensure long term thinking is not clouded by short term focus; challenge assumptions/liberate thinking make explicit decisions which would allow later challenge integrate organisational decision making and actions link HR plans to business/corporate plans so as to influence them communicate plans relevant to the workforce in order to gain support optimise use of resources/make them more flexible acquire and grow skills which take time to develop identify potential problems reduce risks by minimising the chances of making bad decisions, and provide managers with a strategic basis for making human resource decisions. (Strategic People and ning: an overview of workforce planning. Public Sector Management Division, Department of the Premier and Cabinet, WA, 2000) In reality, the choice is whether to be systematic in planning or to be swept along by events. Therefore, rather than leave it to chance, arguably it is better to develop a clear understanding of the present situation, consider key future issues and manage the interplay between the two. (Department of the Premier and Cabinet, WA, 2000,2) Workforce ning Toolkit 3
4 Workforce planning framework Process Context Synergies Outcomes What internal factors are influencing our workforce capability? Identify the key internal factors that are driving the need to be pro-active in developing a workforce management plan. This information should be available from current agency documents and an evaluation of the current workforce plan. Core business of the agency/work unit. Current agency documents: Corporate / Operational EEO Budget Workforce Diversity What external factors are influencing our workforce capability? Identify the external factors that are influencing, and will, influence the agency s priorities, outcomes and workforce requirements. These might include: Whole of government initiatives Sociological changes Government changes Changing community expectations Global and national influences Economic changes Technological changes Government policy documents National government agendas Professional associations Change agendas in other agencies Government commitments Academic research Customer surveys and feedback Where do we want to be? It may be appropriate to do short-term planning, looking forward 1-3 years. It may be appropriate to do longer-term planning looking forward at least 3-5 years. In either case, develop a picture of what the world will look like, what effect this will have on the services the agency offers and how the agency or work unit might need to re-align itself in order to respond to the new environment. Scenario ning is a very effective process to identify possible futures. Information on scenario planning can be gained by reading the relevant texts recommended in Resource Document 4 List of References. The questions that need to be asked are: What people, skills, and attributes will we need and how will we need to utilise them in the future? How can we ensure best practice in service delivery? Global, national and local information on: Changes to technology Sociological issues Environmental issues Skill/occupational requirements Government issues Regional matters Employment matters Agency/regional consultation A clear picture of the nature of the future business of the agency/work unit, the profile of the workforce required to deliver future services and the most appropriate workforce practices to deliver future services. Where are we now? The questions that need to be asked are: What are the services we currently deliver? What is our core business? What systems do we have in place to manage the service delivery and are they effective? What people, skills, attributes do we have and how do we utilise them? What trends and patterns are evident in the data collected? Detail on the current status of the agency/work unit, available from the following sources: MOHRI data Statistical surveys Staff satisfaction surveys Trend data Agency/regional consultation Skills audit Client surveys A clear picture of the current nature of the business of the agency/work unit, a profile of the current workforce and current workforce practices. Workforce ning Toolkit 4
5 Process Context Synergies Outcomes What are the gaps? What strategies should be use? The information gathered by researching the future needs of the agency/work unit and by identifying the current status of the agency/work unit should be analysed to map the fit between the needs of the future and the capability of the present. The questions that need to be asked are: What are the skills we will need that we don t have now? What skills do we have now that we will no longer need? Are our people in the right places for the type and volume of work that will need to be done? Will we have the right workforce mix; eg age, gender, etc that will give us an appropriately diverse workforce Do we need to alter our workforce practices in order to achieve the future we have identified? What other gaps can we identify? This section of the process incorporates the final recommendations on what changes need to occur to the agency/work u nit s current workforce and workforce practices to meet its business planning requirements. Recommended strategies might include a variety of initiatives targeted for specific groups of employees or work requirements. Strategies should be set out as an action plan with nominated responsible officers and timeframes. The question that should be asked is: Change management plan Attraction and retention strategies Rewards and recognition Succession planning Mentoring Organisational learning plans Flexible work practices Work and Family policy and practices Career planning and development A clear understanding of the current capability of the workforce to deliver current services and the workforce capability and practices required to deliver future services. A Workforce Management which is consistent with the goals, objectives and outcomes of other plans such as the Corporate. What strategies or actions could be put in place to address the identified gaps? The strategies should be evaluated against other government and organisational imperatives to test the validity of their implementation. The questions that need to be asked are: Is this possible? Does this strategy fit within budget requirements? Does this strategy sit comfortably with other organisational strategies and imperatives; such as government commitments, diversity strategies, etc? How should we implement the strategies? Current government commitments. Core business of the agency/work unit Current agency documents: Corporate / Operational EEO Budget Workforce Diversity Renewed workplace culture. A Workforce Management which is able to be implemented because it is consistent with the objectives and outcomes of other plans and government and agency priorities. Beginning of a new, betterinformed workforce planning cycle. How have we changed? What more could we do? Continual monitoring of the effect of the strategies on workforce capability and business outcomes is essential. The external environment will continue to change and strategies will have to be evaluated for their continuing relevance to meet future needs. The workforce planing process should be evaluated before embarking on the next cycle of planning. Strategic and Corporate EEO Training and Development Budget Operational Diversity Attraction and retention practices Workforce ning Toolkit 5
6 A strategic framework for workforce management A FOCUS ON PEOPLE: A Workforce Management Strategy for the Queensland Public Service (Office of the Public Service, Dec 1998) Workforce Capability Having the right people in the right place at the right time Workforce Leadership Workforce Performance Mobilizing people to deal effectively with current and future challenges Creating a performance culture centred on continuous improvement and best practice Business Outcomes Organisational Climate Creating a positive work environment where people feel valued and respected Workforce ning Toolkit 6
7 Australian Public Service Model : Building business capability through workforce planning Workforce ning Toolkit 7
8 Framework for workforce planning Strategic People ning: An overview of workforce planning Ministry of the Premier and Cabinet, Western Australia (2000) page 11 ANALYSING ORGANISATION DIRECTION ENVIRONMENTAL FACTORS INTERNAL LABOUR EXTERNAL LABOUR Strategic planning Budget forecasts New equipment Inflows and outflows Working practices Workforce culture Reward system Social Technical Economic Public Sector employment Demographic Data Occupation Salary, etc Trend Data Staff Movement Leave Usage Salary Profile, etc Replacement Staff Contingent Workforce FORECASTING ASSUMPTIONS DEMAND SUPPLY PLANNING Internal staff movements Recruitment & selection Working conditions Leave mgt Training & development Promotion / transfer Succession planning Career planning SCENARIO BUILDING HUMAN RESOURCES STAFF DEVELOPMENT FINANCE/BUDGETS LOGISTICAL Budgets Remuneration Workplace/Ent Agreements Incentives & allowances Technology upgrades Accommodation Fleet vehicles EVALUATION IMPLEMENTING STRATEGIC, PROCESS & OPERATIONAL CHANGES FEEDBACK Workforce ning Toolkit 8
9 Workforce planning models Department of Main Roads Set the planning cycle at business unit and business centre levels Assess the business environment Determine human resource needs for the planning cycle Define existing human resources Determine the gap between human resource needs for the planning cycle against the existing supply of human resources Develop/assess strategies and develop an action plan to reduce/eliminate the gaps identified Prepare the workforce plan Implement, monitor and evaluate the Workforce Workforce ning Toolkit 9
10 Department of Public Works Stage 1 - Workforce Profile How many employees? What sort of employees? (demographics) How much does it cost to employ them? (direct and indirect costs) What are the comparative exit costs? (natural attrition, expected retirement, cost of VERs) Who else is engaged by the Business Unit? (contractors and consultants) Stage 2 Benchmarking Within the Department Across the Qld public service Across industry Compared to best-practice organisations Stage 3 Workforce Reporting Identification of key workforce issues and trends Identification of potential savings areas or areas for change Stage 4 Business Analysis Correlation of key workforce information against business variable (both current and future) including: Systems technology Political issues Regional matters Functional issues Environmental issues Industrial relations matters Skill/occupational requirements Stage 5 Workforce This incorporates the final recommendations on what changes need to occur to the Business Unit s current workforce to meet its business planning requirements. Workforce ning Toolkit 10
11 Department of Natural Resources and Water Align workforce planning with business planning Supply Forecasting Scenario ning Demand Forecasting Compare Supply and Demand Forecasts Identify key workforce challenges (Gaps) Develop/assess strategies and priorities to build the workforce needed for the future Prepare the workforce plan Ongoing monitoring, evaluation and adjustment to workforce plans Workforce ning Toolkit 11
12 Office of Public Employment, South Australia Workforce Information Strategic ning Supply analysis and forecast Demand analysis and forecast Such as: Employee data skills, occupations, abilities, age, gender, culture, leave liabilities Employment type, status history Mobility, separation, recruitment Education, training Strengths, weaknesses Personal development plan Duties and responsibilities Such as: Political, social, economic conditions Agency goal/s, objectives Workforce trends, issues Technological factors Gap analysis Match supply and demand Identify gaps and issues Strategy formulation Develop workforce management strategies to address identified gaps Such as: Training and development plan; Career management and succession plan Recruitment/Selection policy; Separation options; job design Performance Management Monitoring and evaluation Such as: Regular assessment of workforce data Continual review of supply / demand analysis Regular review of agency outcomes, both qualitative and quantitative Workforce ning Toolkit 12
13 The synergies of planning To ensure that policies and programs are not out of step with the overall strategic direction of the organisation, workforce planning must be integrated with other planning processes, such as strategic and corporate plans, business plans, budget plans, managing diversity plans and equal employment opportunity plans. The main questions that influence all workforce planning activity and can only be answered at a strategic level include: 1. What is our organisation s overall strategy/mission? 2. What are the key workforce segments critical to achieving the strategy/mission? 3. What behaviour/skill characteristics do we require in these workforce segments? And 4. What workforce practices and flexibilities are required to achieve the strategy/mission? Mission and values Mission and values Mission and values Diversity Workforce Organisational Strategic Financial Business Mission and values Mission and values Mission and values Workforce ning Toolkit 13
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