Workforce Planning: Part One – Analyze & Identify Gaps

With January coming up quickly on the horizon, now is the time to give some serious consideration to your 2024 workforce planning. If you haven’t already begun your labour plan for 2024, then this blog is the perfect place to start as we will be covering the workforce planning analysis process as well as what trends and considerations are going to shape your 2024 plans. If you have started on your 2024 plan but are feeling a little lost or unsure of how to execute that plan, then we recommend keeping an eye out for part two of this series where we cover a wide range of solutions to fill gaps in your plan.

What is Workforce Planning?

Workforce planning is the process of analyzing, predicting, and organizing the supply and demand of your workforce. It includes identifying gaps, peaks, and lulls, and deciding on actions to manage labour effectively. The goal is to make sure that your organization has the right people with the right skills, in the right positions, at the right time, to meet your goals and strategic objectives. Workforce planning consists of both looking at your organization’s historical data, as well as looking to the future to anticipate changes, both internally and externally. A strong workforce plan will allow you and your business to execute on all your goals and deadlines on time, on budget, and with minimal stress.

How Do I Create A Workforce Plan?

There are 6 basic stages to workforce planning:

1. Set Your Strategic Goals

Ensure you fully understand the company-wide key goals and objectives for the coming year and how the workforce needs to function to meet them. When setting these strategic goals, ask yourself:

• What company-wide changes do you anticipate in the next 1-2 years? What factors will be the driving forces behind these changes?
• Can you outline your short-term and long-term organizational strategy?
• What challenges do you foresee in the emerging market, economic, and political landscapes?
• Are there any impending legislation, policy, or regulation changes that might affect your organization?
• What strengths and challenges is your organization currently facing?

2. Analyze Your Existing Workforce

Review your current workforce and how it is likely to change in the coming year, based on historical data. These questions may help with your analysis:

• To what extent does the existing workforce align to support your business strategy?
• How is the employee distribution across different organizational levels? Ie./ Do you have a full roster of leadership roles and very few people in entry-level positions?
• What impact will the turnover of key staff have on your business's delivery capabilities?
• Which positions pose challenges in terms of recruitment, and where is it difficult to attract high-quality applicants?
• Can the workforce structure be adjusted to improve coverage of workloads more effectively?
• What is the current breakdown of employee years of service within the organization?

3. Predict Your 2024 Demands

Look at the past several years, as well as any company-specific predictions that have been made for 2024, and estimate how many people you will need in specific areas at specific times this coming year. To lay the groundwork for this process, consider these factors:

• What factors influence the workload at my business?
• How is the measurement of workload standardized across various positions, departments or locations?
• What is the staffing requirement for delivering each product or service?
• What percentage of a full-time employee's time is necessary to provide a specific service or product?
• What consumer, business, or governmental trends or changes can we expect in 2024 that will impact the demand for my products or services?

4. Review The Gaps

Compare steps 2 and 3 above. Where are you missing people? Do you have times of the year when you will be understaffed? Overstaffed? Pinpoint the gaps that will have the biggest impact on your ability to meet your organization’s goals and prioritize solutions for those gaps. If you’re having trouble seeing gaps, ask yourself:

1. What skill gaps are present in my workforce?Are there challenging-to-fill positions in specific roles or locations?Do certain jobs demand skills that are difficult to find?How will retirements impact my workforce?Do I have enough people at my peak times to meet deadlines?

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5. Research and Implement Solutions

There is a wide variety of interventions and solutions that can minimize the gaps and make your lull periods more efficient. Research which options are most likely to help you meet your goals (we’ll give you a head start in the next blog in our series!).

6. Monitor Your Progress

Keep a critical eye on your plan as you move through 2024. Evaluate which solutions perform the best and make tweaks often to constantly improve. When deciding how to monitor and improve, consider these questions:

• What criteria will my business use to define success?
• How can I evaluate if my organization has reached its goals?
• How will I know if tweaks are needed in my organization's workforce strategy??
• Are there changes in the workforce that will suggest a need for strategy revisions?

Workforce Trends That Will Shape 2024

The last couple of years since the global pandemic have been a wild ride. From record-breaking unemployment to a full pendulum swing into a deep labour shortage, 2023 brought us somewhere back into the middle, depending on the industry. 2024 is expected to be full of unique challenges in the labour market, especially in key industries such as construction, warehousing, manufacturing, healthcare, and food service. Manufacturing especially is going to continue to struggle to fill open jobs with 85% of Canadian manufacturing companies reporting unfilled positions. A speedy hiring process is also going to majorly impact businesses’ ability to fill their labour gaps in 2024. Flexibility in hours, schedules, and shifts are going to continue to be important to potential employees. Finally, the pressure to constantly cut costs and become more efficient with labour spend will mount in the face of the growing recession.

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Takeaway

2024 is almost upon us, so if you haven’t given serious consideration to your 2024 workforce planning, now is the time! The key groundwork for an effective workforce plan is a solid analysis of your existing workforce and your labour needs for the coming year. Combining these two will give you a solid understanding of the gaps you may encounter with your current workforce in 2024. As key industries brace for unique labour market challenges in 2024, flexibility, speed in hiring, and cost efficiency will be essential. Stay tuned for part two of this blog where we'll explore practical solutions to fill your labour gaps and ensure a successful year ahead.

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Feeling overwhelmed with the workforce planning process? Our team are experts at workforce analysis and creative workforce solutions. Book a call today and we’ll help you get a handle on the coming year’s labour plan.

Originally posted on our website here: https://www.grizzlyforce.ca/blog/workforce-planning-analysis-2024