Human resource management

Strategic workforce planning

 Workforce planning involves analyzing and forecasting the numbers of

workers and the skills of those workers that will be required by the
organisation to achieve its objectives.
o A workforce audit is first conducted to help a business to check the
skills and qualifications of all existing workers or managers.
 Workforce planning will only be effective if it is closely linked with the
firm’s long term objectives.

 The number of staff required in the future depends on many factors

o Forecast demand for the firm’s product
o The productivity levels of staff
o The objectives of the business
o Changes in the law regarding worker’s rights
o The labour turnover and absenteeism rate.

 The skills of the staff required depends on:

o The pace of technological change in the industry
o The need for flexible or multi-skilled staff (to avoid excessive
specialisation and much more adaptability in changing market
conditions)