As the business landscape becomes more competitive and unpredictable, it’s critical to ensure that you have the right people with the right skills in the right roles. Still, this kind of strategic workforce planning is easier said than done, which is likely why fewer than 10% of companies have a five-year plan.
Not having a long-term workforce strategy can significantly impact your ability to attract and retain talent, maintain high performance, and execute your objectives. Here are five steps that will help your organization build the right team.
Step 1: Align With Your Business Strategy
Before developing your talent strategy, you must first clarify your organization’s long-term vision and business objectives. Start by asking critical questions like:
- What is my company’s five-year growth goal?
- What will we have to do (or stop doing) to get there?
- What expertise and capabilities will we need to achieve our objectives?
You need cross-functional input when carrying out this conversation. Involve leaders from all departments in your planning process to ensure that it’s thorough and well thought out.
Step 2: Conduct Analysis and Forecasting
Begin your analysis by examining the current state of your business. Audit your existing workforce for skills, performance, and engagement. Compare the expertise and capabilities that they have now to the ones you will need to achieve your business objectives.
As you make this comparison, consider the scale of your business growth, technology trends, and market shifts that are likely to take place in the next five years. Then, perform a gap analysis to identify any discrepancies between your current workforce and future needs as written in your five-year plan.
Step 3: Decide How to Best Build and Retain Your Team
Once you know the roles most critical to your strategic plan and the gaps in your current workforce, you can create a road map for building your ideal team. Make decisions based on the following:
- Where you can invest in upskilling or reskilling current employees so that they can grow into new roles
- Where you may need to hire new candidates from outside sources
- How you can mix full-time staff with contractors or fractional teams to stay agile and take advantage of niche expertise
Building a workforce that meets your needs is important, but retaining that workforce is even more critical.
Look for ways to improve the employee experience for better morale and engagement. For subject matter experts, create a transparent advancement plan that helps them understand where their expertise aligns with your organization’s future and ensures they see a bright future at your company.
Step 4: Leverage Data and Technology
Consider what data you can extract from your current artificial intelligence, analytics, and database software. Your tech stack should offer deep visibility into your current workforce metrics, including demographics, skills inventories, and retention rates. If you’re not taking full advantage of its capabilities, it’s time to leverage this resource.
A robust human capital management system can consolidate data from various HR functions for a more holistic analysis. You can also use this technology to run what-if scenario models, analyze historical data, and predict future workforce trends.
Leverage these insights to refine your five-year workforce plan so that it’s more accurate and closely aligned with future needs.
Step 5: Monitor and Iterate Your Action Plan
Workforce planning is not a one-time project. As the business landscape evolves, so will your five-year action plan. Evaluate it annually and make revisions based on new data or changing market conditions. This will ensure that your plan is effective and lines up with business goals.
Forward Planning Helps Organizations Achieve Strategic Goals
Effective workforce planning is crucial to ensuring your organization has the talent needed to grow in an increasingly competitive business landscape. Without it, your business might struggle to meet objectives and achieve desired growth.
If you’re looking to create a workforce strategy that gets results, AssetHR’s consulting services can help. Contact us today to see how we can help you build a team that gets you to your goals.