Businesses Need To Improve Strategic Workforce Planning

According to research by Corporate Research Forum, in conjunction with KPMG. Strategic Workforce Planning (SWP), UK businesses are not planning how to manage and deploy human capital.

The results of the research show that few businesses have workforce strategies. Only 15 per cent of organisations said there is a clear link between their workforce planning and their overall strategic business plan.

Organisations also tend to react to workforce challenges, rather than plan for them. 47 per cent said that recruitment forecasts for the next 12 months have not been undertaken in their organisations. This reluctance to identify workforce risks leads to poor succession planning, insufficient anticipation of recruitment needs and a lack of understanding of future skill requirements.

The research also revealed that HR departments aren’t segmenting workforces thoroughly enough. This leads to taking a ‘one size fits all’ approach to assessment, management and appraisal, which can be detrimental to the long term performance of a business.

David Knight, Associate Partner at KPMG comments: “One of the biggest issues that business will face in the coming years is the management of human capital. Workforce planning is now seen as critical to sustaining performance and growth, and the responsibility for this lies not only with HR Directors, but with the wider executive team. Poor planning can make it difficult to adapt to changing market conditions, as well as retain talent in competitive industries. The ability to forecast skills requirements, pre-empt workforce risks and deploy resources efficiently will underpin financial success for organisations in future.”

Mike Haffenden, from Corporate Research Forum’s, comments: “In today’s world of ever-increasing complexity, it is even more important to prepare for an uncertain future armed with a flexible plan, rather than simply reacting to unforeseen events. Adopting a strategic approach to workforce planning will leave organisations better prepared to deal with a dynamic and fast-changing environment.”

To access the full report, click here.

Steve Bebbington
Client Partner
enquiries@jobstheword.co.uk
0207 193 0220

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