How to Guide: Planning and Performance: Strategic Workforce Planning 1
CONTENTS Topic Page 1 Introduction to Strategic Workforce Planning 3 2 Benefits of Strategic Workforce Planning 3 3 Who is responsible for developing a Strategic Workforce Plan? 4 4 The process of Strategic Workforce Planning 4 5 Strategic Workforce Planning considerations - Questions to ask yourself 5 6 Strategic Workforce Planning Framework 8 7 Working with Workforce Data Sets 9 2
Planning and Performance: Strategic Workforce Planning 1. Introduction to Strategic Workforce Planning Workforce planning is an integral part of people management and provides the context for most activities concerned with the recruitment, development and deployment of people resources. It flows from the University Strategic Plan and links people management into the operational business process. Workforce plans need to be robust enough to manage short term activity but flexible enough to cope with a range of future scenarios. At its simplest, effective workforce planning ensures you have: a workforce of the right size; the right skills and diversity; a workforce that is organised and structured in the right way; a workforce doing what you want them to do; and a budget that you can afford. Effective workforce planning is an integral part of the Planning and Performance Cycle and it is essential that there is a clear link between the Workforce Plan, the Faculty and/or Professional Services plans and the University s Strategic Plan. The workforce planning process must be organisation-wide and requires communication between HR, leaders of the Departments and Faculties, Finance and Strategic Planning. Many managers will do workforce planning as part of their daily managerial responsibilities such as devising rotas, staff development plans and skill matrices. This guide is primarily about strategic workforce planning as part of the University s Planning and Performance Cycle, although some of the issues raised here would also be relevant to more routine managerial activity. 2. Benefits of Strategic Workforce Planning Overall, workforce planning provides a strategic approach for making critical people management decisions and allows managers to: plan for new activity and any activity that will cease; anticipate and resolve issues such as staff and skills shortages; 3
identify critical roles and skills without which important planned activity would be put at risk; ensure that staff deliver quality and excellence; ensure that staff are undertaking the roles required to meet the current and future needs of the department; review the efficiency of current staffing structures; manage staff costs; plan staff development needs; consider the flexibility and makeup of the workforce to respond quickly to changing needs; encourage collaborations crossing professional boundaries; and succession plan. 3. Who is responsible for developing a Strategic Workforce Plan? Leaders at Level 3, 2 and 1 need to work together to establish a Workforce Plan that can be submitted as part of their business case for resource during the Planning and Performance Cycle. It is essential that the plan is not devised in isolation. Discussions with the Human Resources Business Partner (HRBP), Finance Accountant and the Strategic Planning Department will ensure an understanding of the likely impact of your plans on the broader University. It is often at this stage that the consolidated Institutional position will highlight resource challenges that require managers to prioritise activity. Having already completed a robust workforce analysis, discussing final refinements can be achieved more easily as essential issues, such as the need to fill risk critical roles, future critical research activity or staff development for critical skills, can take precedence over more nice to have developments. In respect of the Workforce Plan, the HRBP will work closely with leaders and other stakeholders during the timetabled planning process to consider your workforce needs as well as the people strategies you need to implement. The timetable for submission of plans is usually started in October of each year through the Strategic Planning Office. It should be noted that the Universities Planning cycle is iterative and not an annual cycle but each year it takes a formal look at plans against progress and leaders are asked to submit their updated plans to the Senior Executive Team via the Strategic Planning Office. The HRBP will also regularly review and monitor activity against your plans as will Finance. 4
4. The process of Strategic Workforce Planning The process of workforce planning splits into 3 distinct areas: a. Designing the future workforce The type of operating environment you need to have in the future, the impact this might have now and how you develop the infrastructure, people and the resources to achieve this. b. Developing the future workforce The skills and competencies needed to deliver activity in the future, where they come from and making provision for developing or finding these skills internally or externally. c. Delivering the future workforce The people management strategies needed to ensure that people are engaged in appropriate workforce activity. Pivotal aspects to this will be through key processes such as recruitment and selection; reward and retention; training and development; and performance management. 5. Strategic Workforce Planning considerations - Questions to ask yourself There are many business buzz words that are associated with workforce planning and the table below interprets these in relation to a University setting. Following this, Section 6 contains a Workforce Planning Framework that provides a 6 stage process for producing a Workforce Plan. What? Questions Think About Horizon scanning What might be the impact of a change of activity/direction by Government, HEFCE, Gathering intelligence from attendance at conferences, meetings etc other universities, Research Councils, Stakeholder/civic engagement employers, knowledge exchange Networking partners, HEA, etc? Surveys Customer focused activities What context are we currently operating Market intelligence in and how is this likely to change over New areas of research the next three years? New innovations in teaching and learning See University Environmental Scan Report What are the anticipated changing here demands of the sector? Scenarios What are the likely future scenarios to Fulfilling accreditation requirements 5
Structure impact the organisation? What if situations? E.g. more students/less students, change in nature of study (e.g. move to part-time), change in funding (e.g. for PG study) Loss of key skills areas? Does your structure best support the delivery of your objectives, as set out in your three year plan? If not, how does it need to change and what impact will this have on your staff and skills requirements? Trend analysis Economic environment/fees Demographics Popularity of relevant A level subjects Supply and demand for study in your subject area. See Market Intelligence information here Social Trends School leavers/global students intent on HE UK Balance of research and teaching portfolio Curriculum developments Numbers, grades Leadership/management levels Reporting lines, span of control Workforce composition Skills analysis Turnover and staff changes Do you have a management and leadership structure that has the right skills and is effective? Is there a need to develop these skills for the future to meet succession plans? Are there succession plans for leadership roles? Does the current workforce composition meet future requirements? If you need to reduce resource in an area, can this be done through the holding of vacancies and/or planned retirements, or will you need to restructure? What new skills are required in the future? How will critical capabilities be developed? Think about any skill or experience gaps there are that you need to fill. How are you going to address them? Are there any foreseeable losses of staff within the next 3 years? What are the reasons that staff leave? Can you fill any gaps in skills and/or roles from inside the organisation (through Types of contracts - permanent, insecure funding, fixed-term, casual, zero hours etc. Internal/external sourcing (possible outsourcing of services?) Appropriate use of apprenticeships and interns Recruitment Skill sets no longer required What new areas of activity/research/teaching? Link to other areas of planning such as space or capital planning Who s research active? Are we ready for the next REF? What are development strategy to move to 3*4* Who s got the skill set to move forward? Technological changes requiring new skills Projects requiring specialist skills Leadership skills Business Process Improvement Training and Development Plans Performance Management Planned retirements Rate of employee initiated turnover Succession planning Retention strategies for critical roles 6
Compliance and legislative requirements Workforce diversity Organisational change Critical jobs moving staff, providing them with some development or support)? If not, do we need to recruit from within/outside of the UK? How soon do we need to do that? Are there any legislative changes or compliance requirements that will impact on your area? Do all groups have the same opportunities? What equity and diversity issues have been identified? What new activities or services need to be introduced? What activities/ projects need to be discontinued? What changes to processes /new technologies need to be introduced? What are your risk critical roles? Which roles are difficult to fill/retain? Performance Management strategy Reporting obligations Obligatory training Health and safety Risk assessment Required recognition awards e.g. Athena Swan Accreditations Workforce mix data Recruitment and promotion for underrepresented groups Career opportunities Organisational reviews New operating/mi systems Centralisation v decentralisation Numbers of and nature of projects Changes in research/teaching portfolio Roles that would jeopardise output if current post holders left Succession plans to limit risk of losing critical staff Recruitment, retention, career management Ways of limiting single person dependency 7
6. STRATEGIC WORKFORCE PLANNING FRAMEWORK: The framework outlines the 6 stages to preparing a Workforce Plan 1. ACCESS CURRENT DATA SETS ORGANISATIONAL PLANS COSTS ENVIRONMENT PEOPLE Strategic Plan Current staffing levels (what grade?, what type of Research and Knowledge Exchange Staff profile demographics, diversity Institutional Three Year Plan (inc. capital plan contract?, FTE) Research capability; Funding for research; REF; information, FTE, level, age and I&E) Current research activity (value of grants, how Competitors; Interaction with business Academic: Professional Services split Planning Unit Plans many?, application success rates, trends) Student Experience Academic promotion trend Quarterly Performance Reports What other resources? (other operating Student demand current numbers, fees, market Leadership profile and turnover Performance against KPIs and SPIs expenditure, capital) trends, UKBA rules; student feedback NSS, module Qualifications and skills Strategic and Operational Risk Registers Assumptions (wage inflation, pension costs) feedback; student:staff ratios Staff Survey report League Table Position (inc. NSS and other Widening Participation student satisfaction results) Increased fees; Access Agreement; outreach Academic Holistic/Professional Services Enablers Thematic Review Action Plans Comparison tools; legislation and regulations; Professional Body Accreditation Plans technology e.g. New systems See developing dashboard Outcomes of audits/inspections on comparator data here 2. ANALYSIS OF CURRENT SITUATION 3. FORECASTING NEEDS (3 year horizon) Future strategic direction Identify growth and risk areas What has changed? (student numbers, staffing requirements, research funding environment/rules, other income streams) How do I ensure sustainability taking into account these changes? e.g. defer, refocus. Consider the impact of any changes from prior plans can I offset any reductions in income with savings in expenditure? DEMAND Skills required in the future Workforce diversity Roles/jobs required in the future Roles/jobs not required in the future Number and types of contracts required Consider impacts on current workforce Student demand Changes to technology Changes to legislation Changes to academic programmes Working practices/organisational structures Business Process Improvements required Organisational culture Staff trend data including equality profile, grades movement and academic promotion data SUPPLY Review current workforce and anticipate staff turnover and future requirements Areas that are difficult to recruit to Promotions using trend analysis Availability of required skills and experience in the market 4. PLANNING STRATEGIES TO SUPPORT WORKFORCE PLANS 5. IMPLEMENT STRATEGY 6. REVIEW AND EVALUATE GAP ANALYSIS - compare demand and supply Potential surpluses and shortages Risk areas DEVELOP STRATEGIES TO SUPPORT THE WORKFORCE PLAN PEOPLE AND DEVELOPMENT STRATEGIES COSTS Recruitment, retention and promotion Cost of resourcing strategies Re-structuring and redeployment Can we share resources? (equipment, staff) Staff development Analysis of efficiency gains Performance management Remuneration and incentives Succession and career planning Staff engagement Integrate Workforce Plan with your Operational Plan Seek approval and feedback through Planning and Performance Cycle Communications strategy Consider changes to technology and University infrastructure Operational changes that affect plan Monitor progress against plan through management and team meetings, reviews with HR and finance partners, and PDR Review strategy and evaluate impact of changes Consider changes to Workforce Plan based on changes to Operational Plan, new strategy or direction ENVIRONMENT Build in any likely changes to technology and infrastructure New buildings/ equipment Business Process Improvements Legislative or compliance requirements Policies and processes 8
7. Working with Workforce Data Sets Quarterly Planning and Performance Reports will be based on the new performance indicators and information will be made available via the Monitoring Performance Dashboards and Explorer Analytical and Drill Reporting Tool on TULIP. Further information, not available on the dashboards, will be provided to Planning Units by Professional Services areas and from within Planning Units themselves. The Strategic Planning Office, Finance and HR are working together to realise helpful data that will provide evidence for workforce plan discussions that will inform plans over a period of time. A number of the Monitoring Performance Dashboards are now live (several others are works in progress) and there are numerous Explorer spaces available. There continues to be an MI Development Plan which will be used throughout the course of the year to prioritise when further data will appear on a dashboard or be made available via Explorer. Ultimately, it is anticipated that all management information will be available via these tools. 9