Workforce PlanningFoundation of a Successful Organisation or

the Poor Cousin of Capability Building

Presenters:Lucyna MacDermott and Lynne Dalton

Positive Futures

ACWA ConferenceManagement & Leadership Institute

Sydney 2006

Workforce Planning

More definitions:

A comprehensive process that provides managers with a frameworkfor making staffing decisions based on an organisation’s mission,strategic plan,budgetary resources, and a set of desired workforcecompetencies

Or

A continuous process of shaping the workforce to ensure that is is capable of delivering organisational objectives now and in the future

Having the right people with the right skills Doing the right jobs at the right time all the time

Current views about WFP

• It’s just a fad and not a priority• Don’t know what it means• It is not relevant to NGOs• Don’t have trouble getting staff • Planning is a luxury – we don’t have time• Short term planning seems to cope with day to day

operational requirements• Confusion between WFP and staff resourcing and

scheduling• Anxiety about WFP requirements

The current NGO Context

– Workforce linked to services outcomes (i.e. labour intensive)

– Female dominated – 87%– High volunteer usage - 70% of the community

workforce– Staff turnover average 16.3 compared to 10-12% to

all Australian industry average– Low comparative salary levels – 72% of the average

Australian individual– High level of part time roles– 46% of organisations had trouble attracting staff– More complex needs, more clients, more efficiency

and budget pressures

Workforce is ageing – a ‘greying’NGO sector

Retirements mean loss of leadership positions

Loss of intellectual capital and organisational history

Workforce is more diverse

Increased competition for staff

Workers with changing values and expectations and mobility

Ever increasing expectations of improved service delivery by clients.

Population and Workforce trends

Why Do Workforce Planning?

•provides managers with a strategic base from which to anticipate change – initiative rather than reaction

•provides knowledge base about current workforce and maps requirements for the future

•minimises the cost of carrying vacancies - vacant positions do not automatically translate into savings

•Lowers turnover and its cost – estimated turnover costs are between ¾ and 1 ½ times an employee’s salary

•Allows to plan replacements and changes in workforce competencies - reactive recruiting benefits no-one

•Career path and succession planning protect the organisation and benefit staff – higher morale, better retention

Steps involved in WFP

Develop scenarios about future activity in accordance with the organisations strategic plan and other relevant external information

Step 1

Step 2 Assess the staff needs for the scenario ( how many, qualifications, skills)

Step 3

Step 4

Make workforce supply forecasts based on internal data and external trends

Develop strategies to manage the gap between need and have

DemandAnalysis

Supply Analysis

Gap analysis

PossibleSolutions

Implementation

MonitorEvaluate

Strategic directionFuture requirementsScenarios

Workforce quantityand quality

Difference betweendemand andsupply

Actions and initiativesTo close the gap

ObjectivesResourcesTimelinesResponsibility

AssessAdjust

Continuous activity integrated with overall management

"rear-view mirror" approach or "future-focus"

Workforce Planning Tools

Strategic HR Solutions

Financial/Budgets

Logistical Arrangements

Staff Dev Solutions

RetentionIssue

AttractionIssue

Skills Surplus

Skills Gap

Strategic HR Solutions

Succession Management (Mentoring,

Skills/knowledge transfer)

Redeployment

Innovative simplified selection

Specialised/targeted recruitment

Leave Management

Equity and Diversity Planning

Severance

Alternative work arrangements

(telecom, flexible hours, part time)

Phased retirement

Workforce Planning Tool

RetentionIssue

AttractionIssue

Skills Surplus

Skills Gap

Accommodation

Technology (Telecommuting,

skill enhance/replace)

Link budgets to staff renewal

Attractive employment conditions

Salary packages, incentives

Outsourcing/contract work

Transportation

Logistical Arrangements

Financial/Budgets

RetentionIssue

AttractionIssue

Skills Surplus

Skills Gap

Re-Training

Traineeships

Career Development

Specialised Training

Subsidies fees

(Bursaries, HECs Scholarships)

Staff mobility

(job rotation, acting, secondments)

Staff Dev Solution

Performance Management

Beyond Generic Workforce Planning

Population based planning

Consumer/client based workforce planning therefore •definition of the services the public need then •decision regarding the skills,competencies, numbers and types of staff

Workforce Planning is definitely “do-able”

Workforce Planning is the foundation on which organisations evolve

Workforce Planning can change your organization for the better quickly

References & Contact DetailsWise M & Ridoutt L,2005, Demand Driven Human Services Workforce Planning,Public Administration Today pp22-27

A Practical guide to Workforce Forecasting Developing future scenarios for Workforce Planning, www.dpc.wa.gov.au

Australian Community Sector Survey conducted yearly by ACOSS and NCOSSwww.ncoss.org.au

Department of Employment and Workforce Relations www.workplace.gov.au

CONTACT:The Lumac Group Pty Ltd

Lucyna MacDermott lumacd@optusnet.com.au 0409 749 701 Lynne Dalton, lynnedalton@bigpond.com 0410 512 792