What is workforce analysis?

Workforce analytics (also called workforce planning) is a process that uses both employee and ROI data to make decisions on (1) recruitment, (2) retention, and (3) employee management.

The purpose of conducting workforce analysis is to maintain appropriate staffing levels so that critical competencies are met, succession is well managed, costs are optimized, agility is achieved, and flexibility is maintained. These objectives can be achieved when the supply and demand for employees and skills are identified and forecasted in an accurate and timely manner.

What are the benefits of workforce planning?

The benefits of workforce planning are numerous and include providing employers with the ability to:

• Reduce the costs associated with recruitment:
  • Searching resumes for keywords.
  •  Conducting traditional and/or  social media background checks .
  • Avoiding biased decisions in appointment.
  • Finding the best talent to suit the company's needs.
•  Make  employee retention rates higher :
  • Monitoring employee compensation  and suggesting improvements  .
  • Tracking productivity levels.
  • Identifying inappropriate employee behaviour.
  • Maintaining proper coverage and security in the office.
• Manage employees as follows:
  • Setting performance standards.
  • Support employees who demonstrate potential.
  • Identifying skills gaps.
  • Providing satisfactory training.
  • Mapping the succession path for high-performing employees.

What should you look for during a workforce analysis?

During a workforce analysis, employers should consider the following approaches:

• Include adjustments for changes in the workforce (e.g. retiring employees, employees who need to learn new skills due to changing technology).
• Reduce costs by optimizing the workforce according to capabilities and automation.
• Determine future surpluses or shortages in terms of number of employees and specific skills.
• Find, secure, and train successors.
• Accelerate flexibility in an ever-changing work landscape.

How can you use workforce analytics?

Workforce analysis can be used for a variety of reasons. For example, it can be used to assess how staff can grow and adjust to the launch of a new product line. It can determine whether staffing costs are profitable or excessive. It can also forecast future staffing problems caused by attrition, skills and experience shortages that may occur when employees leave or retire, or an overabundance of staff after new technology changes the way work is done.

In other words, workforce analysis is a tool to identify skills and qualification gaps between current and future workforce requirements. It is the basis for creating action plans that bridge such gaps.

What is a good workforce strategy?

A successful strategy is one that follows the three basic principles of good workforce design.

1. An organized, long-term (5-10 years) plan that is consistent with the company's mission and objectives.
2. Focusing on critical roles and primary functions that directly and significantly contribute to the company's desired outcomes.
3. Attainable and affordable strategies for achieving optimal results.

How do you conduct a workforce analysis?

To conduct workforce analysis correctly, there are five general steps in the workforce planning process. Follow them and you will get a comprehensive analysis that will be helpful in drawing conclusions and making intelligent decisions regarding the workforce.

1. Classify the volume of the current workforce using the workforce profile (see explanation below).
2. Assess the quality of the current workforce by evaluating their performance and their potential, both now and in the near future.
3. Predict and outline possible scenarios.
4. Analyze how future scenarios will impact workforce formation.
5. Decide how to plan for and address workforce issues.

What is a workforce profile?

The workforce profile is part of the first step in conducting the analysis. It maps employee data so that it can be used productively. Employees can be grouped by job category (high-level manager, middle manager, production staff, support staff), department, and  job classification  . Additionally, the employer may choose to add more specific factors to the workforce profile with the intention of influencing the quantity and quality of the workforce.

Some other factors that can be included are age demographics as well as other diversity factors such as gender, race, and disability. This should only be done for the purpose of making legal, inclusive adjustments.