Presentation Louch-Strategic Workforce Planning
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Transcript of Presentation Louch-Strategic Workforce Planning
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StrategicWorkforce
PlanningClarity. Simplicity.Expertise.
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Agenda
Defining workforce planning What are the key metrics of strategic workforce
planning? What data do I need? How do I segment my workforce and prioritize
investment in the right jobs? How do I forecast my future need for talent and conduct
gap analysis? What does a gap plan look like and how do I improve
talent management? About Vemo contact info for further inquiries
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What is best-practice workforce planning?
BEST PRACTICE DESCRIPTION
Supply-Based Optimizes current approach and talent investments
Integrates ViewpointsIncorporates perspectives of business leadership (strategic direction), finance(budget), line management (demand) and human resources (supply)
Strategy-Oriented Differentiates work activities that build competitive advantage and workactivities that do not
Forward-Looking What we will need, not what we did need
Enables Proactive
Behavior
Highlights future gaps in talent that we can start addressing today (number,
location and capability)Guides TalentManagement
Enables us to know on what talent to focus our recruitment, developmentand retention activities
Uncovers Cost Savings Determine what work can be done at lower cost with low risk (contingencyand outsourcing), and what work does not need to be done at all
Workforce Planning is how your organization delivers right talent,at the right time, in the right place, at the right cost
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Workforce Planning Will
Create a clear view of talent demand and supply issue by expensearea, reporting relationship and by location
Provide managers easy to use reports and tools to determine theimpact of their talent decisions and prioritize future workforceinvestments
Provide leaders the right metrics - identifying talent risk before itimpacts business objectives
Help control unplanned talent costs and highlight issues that limitemployee productivity
Build competitive advantage through planned vs. reactive talentmanagement
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Workforce Planning Guided Process
Workforce planning is a guided process that helps the businessarticulate its need for talent in such a way that Recruiting and HR canhelp the business meets its priorities
Business Priorities and Budgets
Business Priorities and Budgets Comprehensive Workforce Data
Comprehensive Workforce Data
Outcomes Guide Talent Management
Proactive Recruiting plan Critical talent Development and Retentionneeds identified Build-Buy-Lease decision-making
Talent Demand
The types and criticality of positions requiredto achieve business priorities Strategic staffing model incorporatingqualitative and quantitative demand drivers The number of people required in eachposition and when
Talent Demand
The types and criticality of positions requiredto achieve business priorities Strategic staffing model incorporatingqualitative and quantitative demand drivers The number of people required in eachposition and when
Talent Supply
Forecast of likely turnover and mobility foreach position Analysis of internal supply capability toidentify risk areas of not meeting demand Analysis of external supply availability to fillgaps that cannot be closed internally
Talent Supply
Forecast of likely turnover and mobility foreach position Analysis of internal supply capability toidentify risk areas of not meeting demand Analysis of external supply availability to fillgaps that cannot be closed internally
Gap Prioritized
Current State& Future State
Budget & ActualPerspectives
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Segmenting the workforce: a business-focused approach to workforce planning
Strategic roles arecritical to creating long-
term advantage
Strategic roles arecritical to creating long-
term advantage
Key roles are critical todelivering results within
current fiscal year
Key roles are critical todelivering results within
current fiscal year
Core roles are marginallycritical to business
priorities, but cannot dowithout
Core roles are marginallycritical to business
priorities, but cannot dowithout
C r i
t i c a
l i t y t o B u s
i n e s s
Non Core roles are notcritical to any businessstrategies and may be
opportunity for costsavings
Non Core roles are notcritical to any businessstrategies and may be
opportunity for costsavings
Strategic Hiring /Proactive Sourcing /
Effectiveness
Maintenance Hiring /On Demand Sourcing /
Efficiency
Hiring Avoidance /Efficiency
Recruitment Focus
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Strategic workforce planning drives newapproach to metrics
Recruitment Impact Metrics
Critical gaps closed Strength of critical talent sourcingpipeline Quality of hire by source Progress on forecast Non Core hire avoidance Strategic use of recruiting metrics
HR Impact Metrics
Functional Performance/PotentialMetrics
Forced ranking Multi-rater feedback Talent review Assessments Overall bench strength
Functional HR Measures(Examples)
Functional Turnover & RetentionMetrics
Percent turnover Type of turnover Retention investments vs. turnover Retention of high performers
Functional Recruitment Metrics
Time to fill Cost per hire Candidate experience/brand Compliance Hiring manager satisfaction
Performance Impact Metrics
Highest performers in critical roles Right competencies in right roles Strength of internal critical talentpipeline Strategic use of performance andtalent review tools and programs
Turnover & Retention ImpactMetrics
Turnover/retention of critical rolesand top talent Predictive turnover demographics How management developmentinvestments impact turnover Impact of retention investments
Strategic Measures
Hiring and retainingcritical talent to achievebusiness results
Talent investmentmodel: on strategy and
on budget
Size & criticality of gaps
Build vs. buy decision-making
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StrategicWorkforce
PlanningWhat are key metrics?What data do I need?
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Workforce Trending (Waterfall)
Who
Focus on highest levels, but available to all levels of department owners
What Historical workforce trending and projection
Why Are we growing on plan?
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Undesirable Turnover
Who Executives
What Configured view of turnoverof critical roles and criticalresources with drill down toemployee names
Why What is the turnover thatshurting the business and dowe care about everythingelse?
Quickly yields where thereneed to be managementaction plans (e.g. reasons whyand retention plan)
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Priority Retention Risk
Who All levels of managers
What Retirement risk andprojected attrition risk (basedon history, trendingdemographics) with drill downto employee names
Why Highly targeted retentionprograms focus on criticalpositions Pipeline hiring andsuccession/mobility
management to ensure thatcritical positions are staffedwith effective employees
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Build vs. Buy
Who Important to all, but goalis for Directors to focus onmanager level build vs. buy
What
Which positions are filledby true promotions vs.external hires
Why Becoming make not buy culture starts with fillingmanager roles and criticalindividual contributor roleswith internal talent, startingto build the pipeline
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Right People/Right Jobs Index
Who SVP to compare VPs; VPs tocompare Directors; Directors tocompare critical roles
What Configured measure of rightpeople as defined by business
area (e.g., performance review,achievement of bonus, topquartile sales achievement) inright jobs (critical segments)
Why Are we staffed according tobusiness priorities Is there a relationship betweenhow strategically staffed eachexecutive is to achievement ofpriorities if so, this is theavenue to build the talentmindset.
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Forecasting Future Gaps What is our Targeted Growthvs. Projected Supply After Attrition
Demand What are criticalpositions Where How many When
ProjectedTurnover &
Mobility
PerformanceUpgrading
Supply How many do wehave Do we have theright people
Even if gap is 0today, it needs tobe measured atforecast/futuretime frame
Gap includes: Growth Turnover Net Internal Mobility Performance UpgradingRequirements
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Strategic Hiring PlanCritical Segments What are the drivers for growth? Is our Strategic Hiring Plan aligned with
business plans and executive priorities?
Non Critical Segments What are the drivers for growth and reduction ? Is growth and reduction based on smart
efficiencies?
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Comprehensive workforce data Employees Contractors Organization Structure Budgets Open Positions
InputQuantitative & Qualitative
Business Objectives & Prioritiesfrom BU Executive Interviews
Talent Management Performance Measures Talent Reviews (Dir and VP) Custom performance metrics(e.g., Sales Quota attainment) Recruitment metrics
Workforce PlanDemand / Supply
Mapping and transforming data Baseline headcount forecast /plan based on historical turnover,mobility and budget
Redefine positions (job codes)if necessary Position segmentation by levelof criticality to achievingbusiness plan / objectives Demand Planning by position
Workforce Demographics Supply/Capability of currentemployees mapped against
Demand Analysis
OutputGap between Demand & Supply
Gap and hiring plans by criticalpositions The right metrics: e.g., good/badturnover, demographics, productivity
What will you startdoing? What will you stopdoing?
Quantitative QualitativeOutputs ManagementAction Plans
Key
Data Necessary for Workforce Planning
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StrategicWorkforce
PlanningSegmentation Model
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Segmenting the workforce: a business-focused approach to workforce planning
Strategic roles arecritical to creating long-
term advantage
Strategic roles arecritical to creating long-
term advantage
Key roles are critical todelivering results within
current fiscal year
Key roles are critical todelivering results within
current fiscal year
Core roles are marginallycritical to business
priorities, but cannot dowithout
Core roles are marginallycritical to business
priorities, but cannot dowithout
C r
i t i c a
l i t y t o B u s
i n e s s
Non Core roles are notcritical to any businessstrategies and may be
opportunity for costsavings
Non Core roles are notcritical to any businessstrategies and may be
opportunity for costsavings
Strategic Hiring /Proactive Sourcing /
Effectiveness
Maintenance Hiring /On Demand Sourcing /
Efficiency
Hiring Avoidance /Efficiency
Recruitment Focus
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Segmenting the Workforce: StrategicRoles
Strategic roles arecritical to creating
long-term advantage
Strategic roles arecritical to creating
long-term advantage
Focus/Measure StaffingApproach
Hiring Turnover
Effectiveness Grow or build Proactivesourcing andexternalacquisitions
Bad; very hard tofind and/ordevelop thisworkforce
Critical to all business strategies or critical to driving long-term competitive advantage
Creating new value for the organization, differentiation and innovation (CompetitiveAdvantage)
Day to day activities frequently focused on longer term time horizons working on businessproblems 3-5 years out
Typically populated by
Business leaders responsible for change/transformation/new priorities
Individual contributors with highly differentiated skills who will help drive future growth oforganization
Critical to all business strategies or critical to driving long-term competitive advantage
Creating new value for the organization, differentiation and innovation (CompetitiveAdvantage)
Day to day activities frequently focused on longer term time horizons working on businessproblems 3-5 years out
Typically populated by
Business leaders responsible for change/transformation/new priorities
Individual contributors with highly differentiated skills who will help drive future growth oforganization
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Segmenting the Workforce: Key Roles
Key roles are criticalto driving the current
year business planand objectives
Key roles are criticalto driving the current
year business planand objectives
Focus/Measure StaffingApproach
Hiring Turnover
Effectiveness Grow in linewith revenue OR
Protect/Retain
Proactivesourcing(external andinternal)
Bad; createsimmediate risksof jeopardizingkey priorities
Critical to specific business priorities, objectives or initiatives
Day to day activities frequently focused on the 12-18 month horizon, working on driving keyresults for current or next fiscal year; business results at risk if do not have enough or theright talent in these positions
Have critical or differentiated skills that help drive achievement of specific initiatives and
objectives, or who deliver the brand promise to the marketplace through customer-facingactivities
Business leaders and Directors focusing on customer facing priorities & SLT level objectives
Individual contributors focusing on customers and/or key revenue enablers (found across organizationwith higher concentration in revenue centers than cost centers)
Critical to specific business priorities, objectives or initiatives
Day to day activities frequently focused on the 12-18 month horizon, working on driving keyresults for current or next fiscal year; business results at risk if do not have enough or theright talent in these positions
Have critical or differentiated skills that help drive achievement of specific initiatives and
objectives, or who deliver the brand promise to the marketplace through customer-facingactivities
Business leaders and Directors focusing on customer facing priorities & SLT level objectives
Individual contributors focusing on customers and/or key revenue enablers (found across organizationwith higher concentration in revenue centers than cost centers)
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Segmenting the Workforce: Core Roles
Core rolesoperationalize businesspriorities, but are notthe key drivers of the
business plan
Core rolesoperationalize businesspriorities, but are notthe key drivers of the
business plan
Focus/Measure StaffingApproach
Hiring Turnover
Productivity /Efficiency
Hold steady orsometimesmanageattrition
Maintenance/hire as needed
Can be neutral ifnot excessive
Most of the workforce is in this segment.
Does not create significant new value for company or directly responsible for delivering keyresults, but may support the work done by Strategic or Key roles
No competitive advantage derived from doing this work extraordinarily well but impact ifwork done poorly- must meet threshold standards for industry group
Can often be a skilled workforce, but the skills may not be directly linked to differentiatingyour organization in the marketplace
Look for productivity gains, such as eliminating redundancies, spans of control, overtime,time to productivity, etc.
Most of the workforce is in this segment.
Does not create significant new value for company or directly responsible for delivering keyresults, but may support the work done by Strategic or Key roles
No competitive advantage derived from doing this work extraordinarily well but impact ifwork done poorly- must meet threshold standards for industry group
Can often be a skilled workforce, but the skills may not be directly linked to differentiatingyour organization in the marketplace
Look for productivity gains, such as eliminating redundancies, spans of control, overtime,time to productivity, etc.
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Segmenting the Workforce: Non Core Roles
Non Core supportday to day operations
but are not keydrivers of thebusiness plan
Non Core supportday to day operations
but are not keydrivers of thebusiness plan
Focus/Measure Staffing Hiring Turnover
Streamlining,Efficiency
ManageAttrition,Outsource,Redeploy
Avoidance unlesscan makebusiness case
Often good iftalent not re-deployable
Non Core roles can represent areas for streamlining and cost reduction (especially to fundinvestments in Strategic and Key roles) and at minimum are typically not roles that requirenew investment
Periodically examine if still need to do this work often want to manage attrition
Can seek efficiency gains within the population without risking organizational objectives (e.g.,
outsourcing of transactional activities)Can sometimes represent work activities that were once important or necessary but are nowobsolete
Non differentiated or generic skills - can be delivered through flexible/variable workarrangements
Non Core roles can represent areas for streamlining and cost reduction (especially to fundinvestments in Strategic and Key roles) and at minimum are typically not roles that requirenew investment
Periodically examine if still need to do this work often want to manage attrition
Can seek efficiency gains within the population without risking organizational objectives (e.g.,
outsourcing of transactional activities)Can sometimes represent work activities that were once important or necessary but are nowobsolete
Non differentiated or generic skills - can be delivered through flexible/variable workarrangements
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StrategicWorkforce
PlanningDemand, Supply & GapAnalysis
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Demand planning best practice examples
What Why WhoPlanning by talentinvestment instead ofheadcount
Underlying shifts in types of competenciesneeded require portfolio mgmt vs.headcount mgmt approach to stay onbudget
About 1 in 5 orgs says itsimportant
Planning based onsegmentation
Segmentation particularly for knowledgework that is not workload ratio based isuseful proxy for staffing up, holding steadyand staffing down
About 1 in 2 says is important
Demand forecasting bysumming probability ofmultiple outcomes
Allows organization to model multiplebusiness outcomes with defined probability(e.g., using Monte Carlo method) to definemost likely demand for talent
About 1 in 10 organizations(typically government,healthcare and/or engineering)says is important
Competency inventory Establishing targeted competencies, skills orKSAOs of key jobs and taxonomically linkwork profiles enables intelligentredeployment of human capital
About 1 in 10 says importantnow and about 1 in 5 saysimportant in future
What if modeling Model multiple business scenarios todetermine best workforce plan
About 1 in 4 says important todo regularly
Long term talentpipeline planning
For highly skilled talent where knowledgetransfer is issue, requires understanding of
job progression/flow
About 1 in 3 says important, notalways right away
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Key demand planning considerations
Key Questions Is headcount level appropriate, too low, or too high? Is the skill mix/capability level correct?
Practical considerations Work design, organization Skill requirements (considering work content changes) Workload/utilization Productivity/effectiveness Systems Budget Projects/contracts
Specific ratios governed by industry standards, contract orregulation
Service-level, contract driven staffing (e.g., first level, second
level support) Sales staffing per territory Customer service call volume Regulatory and safety requirements Admin level support policy
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Set of actions should decrease cost, in approximateorder of consideration
Example: demand decision tree
Strategic & KeySegments
Core & Non CoreSegments
Set of actions may increase or preserve current coststructure; logical decision flow shown
Shift Investment
Right Locations?- Close to Customers
- Close to Other Strategic Talent
Adequate Talent for Strategic /Operating Objectives?
Source (Build vs. Buy)?- By time to skill maturity
Appropriate Comp?- Appropriate to Benchmark
- Specific Benchmark- Retention Incentive
Appropriate ValueProposition?
Right Locations?- Lower cost Locations
Surplus Headcount?
-Obsolete/Non-Core Roles- Oversupply of specific role- Right levels of Role
Source (Build vs. Buy vs. Lease)?
- By total cost
Appropriate Comp?-Median/Lower Benchmark
-- General Benchmark- Non $ retention effort
Opportunity to ReduceOverhead?
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Supply analysis best practice examples
What Why WhoGood vs. bad vs. neutralturnover
Looking through lens of segmentation helpsbetter understand turnover, mobility,retirement, performance, and other metrics
About 4 in 5 says important
Relocating work basedupon labor cost and
availability
For certain positions to realize best cost oflabor or to ensure adequate supply
About 1 in 4 says important
Predicting risk ofturnover/drivers ofretention
By observing outcomes, can infer functions(e.g., using neural network analysis) thatpredict likelihood ofturnover/retention/talent availability
About 4 of 5 organizationssays important but do notunderstand how, or if theyhave data to do so
Predicting future supplyavailability throughpromotion of staff
If have a non-constrained promotionsystem with steady demand, can design asystem (e.g., through Markov chain theory)to predict progression of talent through
promotion system
Government/militaryorganizations throughoutworld have worked on this all systems have limitations
Using variable entry-levelsupply pool
Creates a talent hedge to eliminate risks ofinternal supply shortage
About 1 in 5 says important
Using hiring data as aindex of supplyavailability (exampleprovider Employon)
Organizations need a data-based method ofknowing what the competitive demand forlabor is that can be factored into workforceplanning decision-making
About 4 in 5 says generaltopic important
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Key supply considerations
Determine if have supply or have access to supply to meet demandrequirements
Looking forward helps develop understanding of true gap from forecast Helps make sourcing, development and retention decisions Conduct environmental scans and external supply availability analysis
Key projected (aged) workforce categories Voluntary attrition Retirement Mobility (transfer from role internally) / redeployments / redeployable
Consider linkages to performance and assessment systems (e.g.,competency, talent review, etc.)
Factor in performance and capability upgrading? Actuals or estimates? Position eliminations are not included (part of demand forecast)
Determine whether to estimate or analyze projected (aged)workforce
Estimation is often sufficient, augmented by studies of attrition by role or
by role-location for Strategic talent Historical rate is not always going-forward rate (marketplace/industrytrends - experienced by all competitors/companies can be primary driverof rates)
Can develop precise view of retirement eligibility; have to estimateretirement likelihood
Robustness of demand planning process (what do we need?) enablessome latitude in supply evaluation process (what might we have?)
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Turning gap plans into talentmanagement action plan
Segmentation and the right metrics/analytics allow an organization totransform its approach to talent management and construct a targeted actionplan for each business area
Create a recruiting plan that is focused on adding the right talent to drive the business. Moveaway from prevalent and harmful practices of automatically backfilling or hiring to budget
Assess if right people in right jobs and key retention risks for critical roles and resources Recognize future gaps sufficiently in advance to make quality decisions about acquiring,developing or leasing talent
Align rewards and retention practices with business criticality of workforce Proactively identify roles for which you will no longer need the talent then you can maximize
opportunities to redeploy into more business critical roles
Segmentation and the right metrics/analytics allow an organization totransform its approach to talent management and construct a targeted actionplan for each business area
Create a recruiting plan that is focused on adding the right talent to drive the business. Moveaway from prevalent and harmful practices of automatically backfilling or hiring to budget
Assess if right people in right jobs and key retention risks for critical roles and resources Recognize future gaps sufficiently in advance to make quality decisions about acquiring,
developing or leasing talent Align rewards and retention practices with business criticality of workforce Proactively identify roles for which you will no longer need the talent then you can maximize
opportunities to redeploy into more business critical roles
Workforce AnalyticsWorkforce Analytics
Reward &Retain
Reward &Retain
RecruitmentPlan
RecruitmentPlan Acquire Acquire DevelopDevelop Assess Assess
Transition &Redeploy
Transition &Redeploy
Business Workforce Action Plan
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StrategicWorkforce
PlanningThank You!About Vemo
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About Vemo
Clarity. Our technology and process untangles the mess andcloudiness of the typical organizations data to provide a clear view ofworkforce trends, current workforce state and future workforceprojections & plans.
Simplicity. Easy to launch, easy to use. Expertise. We provide the expertise and resources that will enable
you to gain immediate traction with WFP and long-term results.
Develop a prioritizedapproach to talent
investments
Develop a prioritizedapproach to talent
investments
Build a comprehensive,forward-looking talent
forecast
Build a comprehensive,forward-looking talent
forecast
Aggregate and unifyworkforce data to
develop metrics and
performance indicators
Aggregate and unifyworkforce data to
develop metrics andperformance indicators
Better connect talentmanagement
programs to businessneeds
Better connect talentmanagement
programs to businessneeds
WILL ENABLE YOU TOOUR SERVICES
? Enterprise WorkforcePlanning (Direct Access)
? Getting Started Workforce
Planning as a Service? Analytics: The Right Metrics
? Expert Consulting
? Support to Drive Success
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Vemo Software: Our Methodology
HRMSHRMS
Financials / BudgetsFinancials / Budgets
Talent ManagementTalent Management
Use trend analysis tobetter predict future
workforce
Unify and easily manipulateworkforce data from
multiple sources
Tailor Key PerformanceIndicators to workforce
goals
VemoAnalyticsVemo
AnalyticsVemo
PlanningVemo
Planning
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For further information
Peter LouchFounder & CEOVemo(917) 443-4572
[email protected]@vemoinc.comwww.vemoworkforce.com
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