Workforce planning is the process of forecasting what headcount and skills a business will need in future, based on its strategy and growth plans, so recruiting, training and restructuring decisions happen ahead of need rather than reactively.
What it means
Good workforce planning works at the level of roles and skills, not just headcount numbers, identifying gaps between what the organisation will need and what it currently has, and feeding those gaps into recruiting plans or development programmes.
Where it fits in
Workforce plans translate into a budgeted headcount and payroll cost forecast - what a business plans to spend on people in future periods - that finance and payroll both work from when setting budgets.
Key rules
- Forecasts future headcount and skills needs ahead of strategy execution.
- Works at the level of roles and skills, not just raw numbers.
- Identifies gaps that feed recruiting and development plans.
- Translates into a budgeted headcount and payroll cost forecast.
