- Workforce Forecasting: This involves predicting future workforce needs. This may include forecasting the number of employees needed, the types of skills and competencies that will be crucial, and the locations where these employees will be most needed.
- Gap Analysis: This involves comparing the current workforce to the organization’s future needs to identify any gaps that need to be filled. This could be a shortage of employees with certain skills or in certain locations, or it could be a demographic gap, such as an aging workforce that is nearing retirement.
- Action Planning: Based on the identified gaps, an action plan is developed to fill those gaps. This could involve hiring new employees, upskilling current employees, or implementing new technologies to boost productivity.
- Implementation and Monitoring: The action plan is then put into place and its effectiveness is monitored over time. Adjustments may be made as needed.
Workforce analytics, on the other hand, is the use of statistical models and software to understand, predict, and improve employee performance and therefore the performance of the organization. It typically involves collecting data on an organization’s workforce and using that data to inform decisions about hiring, compensation, promotions, training, and other HR practices.
Workforce planning and analytics are critical to an organization’s ability to sustain its operations and achieve its strategic objectives. They also play a key role in managing costs, enhancing employee productivity, improving workforce-related decision making, and managing risk.