Workforce Planning

Question 1

What is workforce planning?

Answer 1

Workforce planning is the process of analysing, forecasting, planning workforce supply and demand, assessing gaps, and determining target talent management interventions to ensure that an organisation has the right people - with the right skills in the right places at the right time - to fulfill its mandate and strategic objectives.

Question 2

What are the costs and benefits of internal recruitment?

Answer 2

Costs ~ Internal recruitment is less expensive because there are little to no recruiting fees and they generally don’t require extensive training, referral bonuses, or travel and relocation costs. Internal recruitments are also usually quicker. For an internal hire, the process may be completed within a few weeks.

Benefits ~ 1. It helps the business keep its best people:
Promoting from within the business sends a really strong message to the rest of the team. It tells them there are clear opportunities to advance within the company - that their time at work can be a career, rather than just a job.
An employee is far more likely to hold onto their best talent if they can see a clear path of progression within the organisation.

2. Less time, effort and money:
   Costs when bringing someone new into the business can reach as much as £15,000 per hire if you take into consideration recruitment fees, new hardware and desk space. One of the most obvious benefits of internal hiring is the reduction of these overheads, as well as the shorter time it takes to fill the position.
3. Shorter learning curve:
   Someone with a history of employment at said business will already have a solid grasp of the company’s working practices and processes. This should mean that the required learning time is significantly reduced compared to someone new joining the business.

Question 3

What are the costs and benefits of external recruitment?

Answer 3

Costs ~ Unlike internal recruitment, external recruitment and be extremely expensive and time-consuming. With expenses ranging from advertising the role and licensing the software required to automate and organize large numbers of applicants, to training, onboarding, even potential relocation for your new hire. There’s also an opportunity cost involved in assigning staff to oversee parts of the interview process as well as a productivity hit, as the new recruit needs time to get up to speed with your company’s workflow.

Benefits ~ 1. Increased chances:
If the company enters a selection procedure with external recruitment then there are increased chances of finding a suitable candidate for the job. This increased chance provides better availability of skilled and qualified employees for the company by using the external recruitment method.

2. Fresher skill and input:
   When a company goes with an external recruitment method, there is a quite better possibility of finding and identifying a fresher candidate who is capable of delivering new skills and inputs for the betterment of the company. Therefore, hiring a candidate with external recruitment makes things clear and better for the company who is in desperate need of fresher skills and inputs for the overall growth of the company.
3. Better competition:
   In the external recruitment process, there will be a chance of facing better competition in terms of hiring new talent. Most of the time some of the company looks for candidates who are capable of handling a certain skilled job and some of them search those candidates who are better with their risk-taking ability.
4. Better growth:
   By using an external recruitment process, the company can expect growth not just for the candidate, but actually, the company can expect it for itself also. When a company selects a candidate with high potential, then there is a higher possibility of the overall growth of the company. The employees within the organization also broaden their capacity and may try to match with the new talent.
5. Competitive spirit:
   When employees are recruited through external recruitment, there whirls a competitive spirit in the organization amongst the employees. They present themselves to be competitive with full enthusiasm to work and match with the new employees.

Question 4

What are the costs and benefits of workforce planning?

Answer 4

Costs ~ Workforce planning is expensive and makes businesses slow to react to shifting strategies and market changes, as well as the workforce plan collapses when the HR hires for that position.

Benefits ~ 1. Reduces labour costs in favour of workforce deployment and flexibility.

2. Identifies and responds to changing customer needs.
3. Identifies relevant strategies for focused people development.
4. Targets inefficiencies.
5. Improves employee retention.
6. Improves productivity and quality outputs.
7. Improves employees’ work-life balance.
8. Makes recommendations to deliver strategic value through talent.