The lack of consistency is the primary roadblock to a successful workforce planning strategy. Only 52% of companies take an enterprise-wide approach, while 32% of companies only follow the strategy in some business units, and 8% of companies leave it up to individual business units. Furthermore, companies face challenges such as the lack of tools and technology, inability to align business needs with workforce requirements, unclear process ownership, undefined methodology, and past failures at strategic workforce planning.
Organizations that predict future financial planning must apply the same logic to their workforce. However, many companies need direction, leadership, or technology to implement a formalized process. A significant issue is the lack of technology because only 22% of companies are satisfied with the current technology they have in place. Companies that invest in workforce planning solutions must consider existing solutions that may need more capabilities or deeper functionality.
Did you know that just 22% of companies are content with their SWP technology?Another challenge is the inability to correlate business needs with workforce requirements. Companies must align or involve key stakeholders to implement workforce planning strategies and understand business strategies before, during, and after implementing a workforce planning approach. Strategic workforce planning should be incorporated into budgeting cycles, business planning, and recruitment and talent development strategies.
Undoubtedly, unclear process ownership can cloud judgment with strategic workforce planning. Though, HR has a unique opportunity to own workforce planning, making it a foundation of every talent initiative. Many workforce planning strategies lack definition, making it challenging to implement tactically. To see results and reach the full potential of strategic workforce planning, companies must move beyond headcount and incorporate a skills gap analysis, scenario planning, dynamic scenarios, and deeper comprehension of the employees' skillset.
By understanding these top challenges, CHRO and workforce planners can start working towards finding solutions to improve their workforce planning strategies. It's time to move beyond just understanding the current headcount and start understanding the role of skills gap analysis, scenario planning, and a deeper understanding of skills.
Partner with eQ8 to take your workforce planning strategy to the next level.