The importance of planning in an uncertain world

Lucy D | HR Network paper 158 | Institute for Employment Studies | May 2022

cover image

The current UK labour market is one of the tightest we have seen in decades. A key metric of tightness, the ratio of those seeking work to vacancies, is at its lowest level since the 1950s. Currently, there is close to one vacancy for every person seeking work. One reason for this is the lower number of people seeking work, with 600,000 fewer people active in the UK labour market compared with pre-pandemic levels.

This paper will highlight three key reasons why workforce planning is critical right now for businesses and HR teams attempting to successfully navigate the tight labour market, and a future world of work characterised by rapid changes in ways of working and workforce expectations, and increased use of technology. It will also highlight a number of key practice tips HR professionals should consider when embarking on workforce planning.