the next big hr transformation: how to excel at workforce planning

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The Next Big HR Transformation: How to Excel at Workforce Planning

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Speaker: Dino Zincarini Project Manager Workforce Planning Visier Moderator: Max Mihelich Associate Editor Workforce magazine

The Next Big HR Transformation: How to Excel at Workforce

Planning

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Max Mihelich Associate Editor Workforce magazine


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Dino Zincarini Project Manager Workforce Planning Visier


© 2014 Visier™


Dino Zincarini December 2014

WORKFORCE INTELLIGENCE SOLUTIONS. SMART. INTUITIVE. COMPLETE.

Presenter

Presentation Notes

Visier provides Workforce Intelligence solutions that: Are the foundation for HR Transformation Support the complete insight to action loop Let you understand and plan – with precision – how to best recruit, retain, and motivate your workforce

SOME OF OUR AMAZING CUSTOMERS

TODAY’S TOPICS

Context for the growing importance and value of workforce planning

The BIG concepts that result in effective workforce planning

How HR can be the catalyst for upgrading your company’s workforce planning

Setting the Stage: Trends Driving Workforce Planning

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Fragile Economic Recovery

• Downward pressure on prices • Uncertain economic future • But, CEOs are starting to shift from survival to

growth mode

“76% of CEOs have cut costs in

the last 12 months.”*

Need to protect the

bottom line

Need for more

responsive, proactive, and agile

planning

*PWC 2014 CEO Survey

Presenter

Presentation Notes

PWC 2014 CEO Survey Exelon – final frontier of savings Planning once a year, or taking months to plan bogs down

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Globalization

• Global markets are increasingly important • By 2025 China will have 45% of global F500 • Increasing proportion of global GDP

is coming from emerging markets

Need to compete globally for talent

Need to analyze and

compare global options for growth, as

part of planning

“50% of CEOs want to increase headcount next

year.”*


Demographic Shift & Skills Shortages

• The working-age population is undergoing a major geographic shift

• Experienced Baby Boomers are retiring

“CEOs in North America see tech advances & demographic shifts as the 2 key global trends that will transform their businesses over the coming 5 years.”

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Need to ensure they have the

skills needed to achieve corporate

objectives.

Need to manage rising labor costs

in emerging economies.


Presenter

Presentation Notes

http://www.pwc.com/gx/en/ceo-survey/index.jhtml PWC 17th Annual Global CEO Survey, 2014 Example: Growing in India, peaked in China, falling in Germany

SUPER FUN AUDIENCE PARTICIPATION TIME!

POLL: WHAT IS YOUR COMPANY’S TOP WORKFORCE

CONCERN?

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1. Recruiting high performing talent for succession planning

2. Developing existing talent for future leadership or scare skills

3. Retention of high performing talent 4. Managing costs associated with the workforce 5. Managing labor and skills to ensure business

continuity

POLL: WHAT IS YOUR COMPANY’S TOP WORKFORCE CONCERN?

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2014 HARVARD BUSINESS REVIEW: TOP WORKFORCE CONCERNS

*HR Joins the Analytics Revolution, HBR Analytic Services

Presenter

Presentation Notes

In HBR’s HR Joins the Analytics Revolution, these top workforce concerns were identified, based on a survey they performed in 2014, where respondants were asked to select the top 3 concerns they had about their workforce. Which do they relate to?

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Nearly two-thirds of CEOs believe the HR function is not well-prepared for the changes

needed to respond to transformational trends.


Presenter

Presentation Notes

file:///Users/Sutcliffe/Downloads/PwC-17th-Annual-Global-CEO-Survey-Jan-2014.pdf

HR MUST DRIVE THE PEOPLE STRATEGY TO RESPOND TO THESE TRENDS

It is difficult to share and collaborate on

workforce plans

We have a limited view of workforce

costs

We can’t accurately map headcount to costs, so plan for

positions, not costs

HR Strategy Gap: How to connect your people strategy and

workforce planning

We do not know our historic trends for

planning

Finance owns cost management, but does not consider talent implications

…

Presenter

Presentation Notes

HR MUST UNDERSTAND THE TOTAL COST OF WORKFORCE

How much does our workforce really cost? How can we optimize our workforce costs? How are our costs changing over time? Are we on track with our plan and budget? How can be better map to Finance?

Most HR departments lack

a complete view of workforce costs

76% of CEOs have cut

costs in the last 12 months

People are 70% of a

company’s cost – and are the “final frontier” of savings

in competitive markets

Presenter

Presentation Notes

People are 70% of a company’s cost Data-driven CEOs see people as the final frontier in competitive markets For medium to large enterprises, a 1% workforce optimization, can translate into millions in bottom line savings

Effective Workforce Planning: The BIG Concepts that Return Value

WORKFORCE INTELLIGENCE

Presenter

Presentation Notes

So, what do we mean by workforce analytics and planning? The two are interconnected. WFA is about looking at what’s going on in your organization You can ask your most strategic workforce questions, such as: What does turnover look like by department, location or role? How are we mapping against industry diversity benchmarks? What are my Top Talent characteristics? WFP is about determining what you might need to do Turning insight to action Based on your current and historical workforce data, you can create workforce plans, run what if scenarios, ask managers to input their needs, and map plans directly to costs

WHAT IS WORKFORCE PLANNING?

Workforce Planning

Workforce Planning is about:

Projecting labor supply based on where you are today Capturing labor demand for where you want to go Drawing the picture of how you can get there


Analyze Align Act

Where do we start? Where have we

been?

What can we do? How do we get there?

How are we doing? Should we change?

Workforce Planning

GETTING AHEAD OF THE TRENDS

Create “what-if” models to understand the people and cost impacts over time to your organization. Build workforce budgets by capturing labor demand and projecting labor supply. Monitor and forecast how well you are executing against your workforce budget to see if you are on or off track.

Analyze

Align

Act

WHAT-IF MODELS

Create what-if analyses to understand the people and cost impacts over time to your organization. Build out different scenarios at a high-level, based on different assumptions, and see the projected outcome.

Why? Who? When?

• Brainstorm ideas for future change

• One person or small group

• Support strategic planning

• Quantify strategies • Confident with data • Major event

• Compare possibilities • Ops or savvy leader • Ad-hoc question

• Choose the best path • Business climate change

• Magnitude over precision

COLLABORATIVE WORKFORCE BUDGETING

Build workforce budgets by capturing labor demand and projecting labor supply.

Why? Who? When?

• Required by Finance to create annual budget

• HR is the facilitator of the process

• Typically annually in support of budget cycle

• Required by HR to understand people plan

• Finance sets the cost constraints

• Re-planning may occur as the business changes

• Compare different possibilities

• Input from all people managers

• Time constrained

• Precision is needed over magnitude

• Collaborate to get to the best estimate

• Establish organizational buy-in

MONITORING & FORECASTING

Monitor progress and forecast how well you are executing against your workforce plan to see if you are on or off track.

Why? Who? When?

• Turn plans into reality by tracking progress

• Typically Finance with HR support

• Monthly or quarterly forecasting

• Quantify variance to spark corrective action

• Senior leaders and people managers

• Continuous reporting

• Course-correct as business changes

• See results during the plan lifecycle, not after

• Drive accountability

HR AS THE DRIVER OF SUCCESSFUL WORKFORCE PLANNING

Workforce Planning

Analyze “What-If” Scenarios

Align Workforce Budgeting

Act Monitor & Forecast

Understand where you are as the starting point for

planning where you can be

Build scenarios to align the people plan to the business

strategy

Predict future scenarios based on historical trends

Collaborate across the organization to build plans

Share and iterate on

headcount demand to increase accuracy and buy-in

Match costs to headcount to

unify HR and Finance with one version of the truth

Publish plan metrics to all stakeholders to increase

visibility

Compare actuals to plan to quantify execution

Adapt to variances quickly by

improving execution or modifying the plan

Transforming Workforce Planning: Driven by HR

THE REALITY OF WORKFORCE PLANNING TODAY

Many companies follow old processes for workforce planning that, in reality, are more about financial budgeting Planning happens infrequently and can be very tedious Plans document intentions but don’t change reality

Old School New School Run a compensation review process. Own workforce planning in support of the

corporate people strategy.

Explain variances between plan and actuals by comparing historical numbers with Finance.

Manage variances by continuously updating the plan with actuals and projecting the impact forward.

Spent too much? Freeze hiring. Build business scenarios with costs to quantify options and make an optimal recommendation.

Focus on compensation, bonus, benefits. HR is the expert on the total cost of workforce.

HR is the Administrator HR is the Facilitator and Advisor

HR IS THE CATALYST TO TRANSFORM WORKFORCE PLANNING

PLANNING: HR IN THE DRIVER’S SEAT

Analyze Align Act

What do our total costs look like?

What is contributing to our cost increases?

Where can we

optimize costs?

What is the budget? What should it be?

Where do we want to invest or reduce costs?

What are the talent implications?

What should our workforce plan be?

How are we tracking against our plan and total costs?

Should we adjust our plans?

THE EVOLUTION OF WORKFORCE PLANNING

Annual process

Different source systems

Headcount focused

Explain the past

Position management driven

No standard processes

Limited view of costs

Continuous processes

One version of the truth

Cost focused

Forecast the future

Cost analytics driven

Standardized processes

Full view of costs (TCOW)

Traditional WFP Visier WFP

ANALYZE : WHERE ARE COSTS GOING?

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ALIGN : UNDERSTAND TOTAL COST OF WORKFORCE (AT LEAST WORK TOWARDS THIS)

Total Cost of Workforce includes all components of cost to the company

This data isn’t always in once place nor in one system

Looks intimidating?

Visier can help

ALIGN : WHAT DO WE EXPECT TO SPEND?

40

ALIGN : WHAT SHOULD WE BE SPENDING?

41

ALIGN : WHERE SHOULD WE INVEST?

42

ACT : MONITOR & REVISE REGULARLY

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Monitor actuals and

compare to plan to drive accountability

Forecast regularly: Incorporate actuals as they occur and project forward to determine if you will end up on target

Review often and revise the plan if needed


Workforce Planning

Analyze “What-If” Scenarios

Align Workforce Budgeting

Act Monitor & Forecast

Understand where you are as the starting point for

planning where you can be

Build scenarios to align the people plan to the business

strategy

Predict future scenarios based on historical trends

Collaborate across the organization to build plans

Share and iterate on

headcount demand to increase accuracy and buy-in

Match costs to headcount to

unify HR and Finance with one version of the truth

Publish plan metrics to all stakeholders to increase

visibility

Compare actuals to plan to quantify execution

Adapt to variances quickly by

improving execution or modifying the plan

RESOURCES AT WWW.VISIER.COM

45

DISCUSSION

Dino Zincarini [email protected]

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