Employee turnover can have a vastly negative impact on a company. Businesses have to spend their valuable time and money looking for a replacement. The replacement process often has high costs including training, paid postings on job boards, background checks, as well as the hours of work lost when a position remains unfilled. Rather than struggling to hire new candidates every time an employee leaves, HR recruiters can take a proactive approach to the employee turnover with workforce planning.
Workforce planning is a practice that enables HR teams to work with top management and help their organization achieve long-term goals. Workforce planning enables HR professionals to accurately identify and track future talent gaps. Once HR teams predict when talent gaps are going to potentially occur, they can start searching for replacements. If they wait until the employee has already left, then they may end up recruiting someone who isn’t the best fit for the role. With workforce planning, HR can keep a list of potential candidates on hand, generate forecasts, and determine cost impact.
HR teams have to deal with a number of day-to-day commitments. They interview new candidates, post job vacancies, track benefits, arrange training, and more. Apart from all these tasks, they’re also often asked to do a strategic analysis to push their business forward. One of their core responsibilities is to generate accurate forecasts.
With effective workforce planning, HR teams can determine what employees the organization will need. They will look at attrition rate, see who is planning to retire in the future, and include business fluctuations and sales numbers into their predictions. Thus, helping them to budget for the future, organize their departments accordingly, and figure out scheduling amongst employees.
Workforce planning also involves the data visualization of cost impacts. HR professionals are responsible to figure out how much it will cost to lose and hire a new employee, what kind of resources they will need to train and retain an employee, and how much they may spend on growing their business. Once they have proper data, HR can do a budget and salary forecast to ensure they are prepared for what lies ahead.
For better workplace planning, HR professionals require access to employee data and advanced analytics. A sophisticated HR management system can provide high-level insights into employee turnover, and helps generate reports and forecasts to secure executive support. It also assists with recruiting the best talent for the right positions, as well as decrease the chances of attrition. With a cloud-based HR platform, HR teams can seamlessly perform workforce planning and business reporting. They can play an important role in company’s growth, providing critical information for management to guarantee the business’ success.
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