What is workforce analysis?
Workforce analysis is a technique, in every organization top level management will have a need to assess their workforce and what things are influencing it. As far as work force analysis are concerned following questions arising such as, “why is turnover so high?” “Why recruitment level is so high in this period?” “What are all the reasons for employee exit in our organization?
Workforce Analytics is the combination of employee-related metrics, which allows companies to measure how well their workforce performs.
Harvard Business’ study certifies the use of advanced workforce analytics is directly connected to the ability to manage workforce more effectively. By doing an adequate workforce analysis, it is possible to measure data in order to have a clear picture of the current situation and make further improvements related to HR strategies. This will result in an optimization of business results.
What Are the Benefits of Workforce Analysis?
The benefits of workforce analysis are numerous, including the ability to:
Reduce the costs of recruitment by doing the following:
1. Looking for keywords in resumes.
2. Background checks, both traditional and social media.
3. Avoiding biased hiring decisions.
4. Finding top talent who best fits the needs of the company.
Increase employee retention rates by:
1. Employee compensation is being monitored and suggested for improvements.
2. Monitoring productivity levels.
3. Detecting inappropriate employee behaviour.
4. Maintaining adequate coverage and security in the workplace.
Employees are managed by:
1. Setting performance goals.
2. Employees who show promise are supported.
3. Identifying skill deficiencies.
4. Training that is satisfactory.
5. Developing a succession plan for high-performing employees.
What Should You Look for During a Workforce Analysis?
Employers should look for ways to: during a workforce analysis, employers should look for ways to:
- Make adjustments for changes in the workforce (e.g. retiring employees, employees who need to learn new skills due to changing technology).
- Reduce costs by optimising the workforce based on skills and automation.
- Determine future staff surpluses or shortages, both in terms of number and specific skills.
- Find, hire, and train your successors.
- Drive greater flexibility in an ever-changing work environment.
How to get the most out of your Workforce Analysis?
In order to maximize performance management and optimize company’s results, the following best practices can be drawn from the study:
Identifying high-potential employees: It is very important to have high-performance teams composed of the right employees in each position according to their talents.
Providing employee training to grow all of their capacities: Companies that are very effective at leveraging their workforce focused most on developing their employees’ skills in strategic areas.
Engaging employees and empowering them to perform at their highest possible level: Employees should feel truly connected to the company, sharing its culture and vision. Having a workforce that feels part of the organization and is motivated will lead companies to success.
Constantly investing in and developing talent: Companies that have an effective performance management are more likely to have a competitive advantage in quality, customer satisfaction, profitability or market share.
Integrating HR into the strategy of the company: Integrating work force analysis into business systems will make it possible to compare each employee’s performance against operational processes and company performance, which makes it easier to detect and manage both their weaknesses and their strengths.
What Is a Good Workforce Strategy?
A good workforce strategy adheres to the three fundamental principles of good workforce design. There has to be:
- A well-organized, long-term (5-10 year) plan that is consistent with the company's mission and goals.
- A focus on critical roles and primary functions that directly and significantly contribute to the desired outcomes of the company.
- Obtainable and cost-effective strategies for achieving the best results.