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Workforce Planning: The Wider Context
A literature review

Sinclair A, Robinson D
Employers’ Organisation for Local Government, August 2003

commissioned by Employers’ Organisation for local government

Whilst workforce planning has been around for a number of years, there has been a recent resurgence of interest in this HR practice as organisations have begun to realise that the need for planning is greater than ever. The current business climate of intense competition and increasing speed of delivery means that organisations need to plan ahead in order to survive. The fluctuating economy means that they need to be prepared for possible downturns as well as upturns. In addition, changing demography, in particular the ageing of the workforce, means that organisations need to make efforts to avert an impending loss of skills as a large portion of the workforce retires.

The need for workforce planning is not exclusive to the private sector. The public sector faces a number of the same pressures, in addition to extra pressures of staff shortages and demands to modernise service delivery. Both in the US and here in the UK, government initiatives are requiring local government to demonstrate workforce planning capability and action.

The benefits of conducting workforce planning are many and varied. Essentially it helps organisations to ‘get the right people in the right job at the right time’. It allows for a more effective and efficient use of workers and for organisations to prepare for restructuring, reducing or expanding their workforces. In addition to the practical benefits, the process of workforce planning aids organisations by providing overarching objectives which integrate the various divisions and focus employees’ attention on common goals for the future.

A number of models and techniques are available to help organisations conduct workforce planning. What is appropriate for an organisation to use depends on how easily it can be implemented and the ease with which it can be tailored to the situation at hand. Most models are broadly alike but there are some specific models that focus on particular organisations or types of work, or on short-term logistical planning. There are also sophisticated software packages available. However, most organisations do not need a complicated approach and it is often better to take the simplest route than to try to do too much.

Some HR researchers believe that if workforce planning is to work, organisations should take note of the following issues:

• It is important that workforce planning is not seen as being able to predict the future or organisations will end up disappointed. Rather, it should be seen as setting the longer-term context for business issues and providing a decision filter through which other plans can pass.

• HR staff often find workforce planning challenging. It presents a strain on their resources and is difficult to fit into the traditional HR role. Some HR professionals may also lack an understanding of business issues which would help in creating workforce plans and in selling them to their colleagues.

• The approach of workforce planning is often misguided. Practitioners try to set a bullseye target covering the entire organisation to be reached over a fixed time period, sometimes spanning several years. However, fluctuations (both internal to the organisation and external) mean that they rarely follow straight-line paths. To be effective, workforce planning needs to be flexible, ongoing and sensitive to the different needs of units. It should not stand alone but should be integrated with business plans in a symbiotic relationship where they both react to and inform each other.

• Finally, workforce planning should not be too ambitious in its objectives. It cannot be expected to even out the peaks and troughs of the business world. Nonetheless, it is an important practice. It is much better to develop a clear understanding of the present situation, consider key future issues and manage the interplay between the two than to leave things entirely to chance.

Workforce Planning: The Wider Context: A literature review, Sinclair A, Robinson D. Employers’ Organisation for Local Government, 2003.
ISBN: (no ISBN). £free

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