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Strategic workforce planning is a relatively new concept and practice for most organizations. Many firms have a simplified form of workforce planning in place which is focused on replacement of people in current positions and functions. It is a rare experience to find an organization that has thought through its future needs and balanced those needs with a mix of both hiring — internal and external — along with development.

Why the Need

Growth and recession are hard to predict. Neither are typically gradual or linear. There may be a sudden need to add dozens or hundreds of employees in new business areas or in different parts of the world. Or, there may be a sudden shift in products that makes many employees redundant. Economies can suddenly slow and business can evaporate quickly. Replacement planning does not deal well with any of these scenarios. And this is why typical workforce planning is looked on with scorn by many human resource professionals as well as business managers. keep reading…

There are three reasons to do a succession plan, and identifying a replacement for the CEO and select top executives is only part of one of these reasons. The three reasons are:

• Replacement for key employees
• To support anticipated growth
• To address and deal with talent shortages

Unfortunately, however, succession planning is too often considered an exercise, a means to an end, a human resources task to be checked off and moved into the done pile. This is absolutely the wrong way to think about succession planning. keep reading…

Earlier this month The Conference Board released the results of one of its periodic surveys saying less than half of American workers are happy at their job.

Out of 2,900 respondents to the survey, only 45 percent reported being satisfied with their job. In 1987, when the question was first asked, 61 percent reported being satisfied.

By now, the numbers may have changed. The survey was conducted last summer when huge monthly job losses were being reported and the unemployment rate was climbing. I should also point out that the survey is not without its challengers and that the results are at odds with other polls, notably the Gallup and University of Chicago, which found workers much more satisfied with their work.

Still, The Conference Board survey shouldn’t be dismissed out of hand. Its other surveys, including the much-watched Consumer Confidence Index, supports the suspicion that many of you have of a general worker malaise. A Salary.com survey released a year ago reported similar, though somewhat less dramatic, results. keep reading…

Even in this recession, everyone I speak with is moaning about not being able to find the quality candidates they think they need. Maybe they have caused their own problem by narrowly defining jobs, by using yesterday’s criteria to solve today’s problems, and by a lack of imagination.

We (hiring managers, executives, HR folks, and recruiters) set up expectations and define jobs based on what is traditional. We work from habit and past experience. This is not necessarily bad, but may not match our current needs or the available supply.

Some of us say that we cannot find qualified C# programmers, for example, when we all know that there are very few people with good skills in this area. We are left with choices: hunt like crazy on the Internet and elsewhere to find someone we can influence to leave their current position, wait to find a disgruntled one, or decide to do something different. Something different might be to rethink the job entirely so that it more closely matches someone we already know is available. It might be to increase the supply by developing training programs or taking on apprentices. It might be to merge the job with another one. There are lots of possibilities beyond just doing what we have always done. keep reading…

We have all heard the recent statistics of rising unemployment rates, along with candidate-to-position ratios being the highest we have seen in decades. Almost every time I open the paper there is a depressing story of how one job posting attracted hundreds of applications. One story even told us of a job posting for a single position that attracted more than 14,000 applications in five business days — almost 3,000 applications a day!

What is even more interesting than the actual volume of candidates is the response I hear from business leaders as to how they are dealing with this issue. keep reading…

The 21st century has opened with a flurry of disasters, economic crises, acts of terrorism, and wars that underline the need to adapt quickly. The skills of planning, goal orientation, and consistency that we taught and practiced widely in the 20th century are no longer success factors. Workforce planning seems oxymoronic, and a three-year plan is looked at with both skepticism and humor. Trying to predict who we should hire in February or May is most often a futile act, yet we are still required to produce the right people — fast!

Whether we are talking about corporate strategy, HR strategy, or talent strategy, we are talking about probabilities. And the closer the desired outcomes are to today, the higher the probability that they will actually happen. But, rapid change makes planning less and less relevant, and recruiters, planners of all types, and organizations are trying to find ways to cope with the lower and lower probability of being able to predict anything.

Historically our plans have been based on an assumption that is increasingly in question: that most things are going to be the same or at least similar in the near future to what they are today. Planning has relied on consistency and stability and to some extent a simple world.

The Greek poet Archilochus wrote a poem about the fox that knows many things, and the hedgehog that knows one big thing. His point was that some of us — the hedgehogs — are inclined to hold one big idea or view of things and disregard all others. But some are more likes foxes that go from one thing to another easily and hold many divergent ideas at the same time. This seems to be the winning approach for this part of the 21st century.

The world is not consistent, stable, or simple. Three-year and five-year plans are at best general, low-probability indicators of goals deemed desirable at the moment of creation. Any event might change those goals. The recruiters you hired in last year’s frenzied market weren’t needed months ago and may never be needed again. No one wants those HTML programmers who were in high demand just months ago. The sudden failure of banks, the quick economic fallout of 2008, or the seemingly sudden surplus of workers has changed many organizations’ plans. Falling home prices have made unaffordable property affordable. Fat savings accounts have become slimmer, changing retirement plans. And something as simple as the CEO leaving or the arrival of a new VP of HR can change the best laid plans.

So how can we deal with constant change and the need for fast action?

The best approach may be twofold: (1) develop an accepting attitude about change and a belief that change will lead to winning, and (2) design systems and approaches to deal better with change. Building skills that improve your ability to adapt is important to both personal mental health and to organizational success.

The change competencies are agility and resilience. A book that I highly recommend is called The Age of the Unthinkable by Joshua Cooper Ramo. This short video will give you a sense of his perspective. In it he outlines why Al-Qaida is successfully beating the U.S. in Afghanistan and how Hezbollah is winning over Israel. Both of these groups have learned that they cannot succeed head on against a powerful foe like the United States or Israeli military, but they can win by being able to move fast, adapt to changing situations, take advantage almost instantly of any advantage, and break all the rules.

So what does this mean to us in recruiting? keep reading…

Great people don’t make a job change for money. Great people have to be enticed to talk to a great organization. How I overcome this is by arguing that my “tribe” is a better fit for them than their current tribe. My tribe is cooler, funner, more interesting, faster, more successful, and contains less management-by-spreadsheet than their company. Come jump ship and work with us. This is the difference between “sourcing as selling” and resume mining.

I chose the word tribe because it is a good, short noun for the idea that “birds of a feather flock together.” And top managers can be a destination. They have their own posse and peeps who follow them wherever they work. I know: I work for one. But even the most incredible managers eventually run out of people to call when rounding up the usual suspects. This is where I come in. I sell the manager and the team. I look at the group that I am headhunting for and try to find some common denominators. keep reading…

Developing candidate pipelines (i.e. having a ready “pool” of candidates available when a position opens up) is a topic that has been talked about for years.

Of late, given the decrease in open positions, the candidate pipeline subject has resurfaced again as a hot topic among many recruitment leaders and hiring managers.

I’ve heard comments like:

“Now is the time to fill the pipeline for future hiring needs.”

“Since the recruiters have extra time, let’s have them build candidate pipelines.”

These comments are being made at companies throughout the country.

What I find most interesting is a growing frustration and disconnect between recruiters and hiring managers regarding this subject. keep reading…

Review your senior leadership positions. You might take the top 2% or 10%; whatever is a logical method to review your organization’s top tier talent. It might be that you review all director and above positions, or VP and above. You may wish to review only positions in a certain pay grade and above. (By the way, I’ve got a more in-depth article on executive pay coming up in the Journal of Corporate Recruiting Leadership.)

As you review these positions, find out if there is a person or persons in the organization who could take that individual’s position should it become vacant. Document who could fill the void, and/or make note if there is no one who could fill the position, should it become vacant. You might also make note of any imminent retirements in any key positions over the next few years as well. Once complete, you will have a clear understanding of which positions you need to plan recruiting for and when that recruiting might be coming online. Make this a subset of your strategic workforce plan.

After you complete this top talent succession planning exercise, compute the following ratio: keep reading…

Breaking the “War For Talent” / War On Talent Cycle

Most people in recruiting and talent management are just so busy that they don’t have time to step back and build programs or marshal line managers to participate in programs that successfully let them see the “big picture.”

As a result, many organizations are just starting to emerge from another painful cycle of rapid hiring followed by large-scale layoffs.

I call this phenomena the “war for talent” followed by the “war on talent.” Unfortunately, many organizations can look back at their history and see that for decades they have been repeating the same cycle over and over.

This “war for talent/war on talent” is unnecessary and expensive. In my view, it’s time to forever break that cycle through more effective workforce planning.

The topic of workforce planning is hot these days (it will be a major topic at the fall ERE Expo) because more and more executives have started openly discussing their desire not to repeat the painful “war for talent/war on talent” cycle. This binge and purge is extremely expensive, and it damages the firm’s employer brand image, stock performance, and innovation capability.

If you’re going to end this vicious cycle, focus both time and resources on workforce planning and in particular, upturn planning. While news reports may have left you thinking things are not getting much better, many organizations report that they are anticipating 200%-plus growth in requisition volume compared to last year by Q3 end.

If you work in talent management and you were surprised by the last economic downturn, don’t reaffirm your lack of competence by being surprised by the next upturn. Even the most pessimistic economists predict an upturn; the only question is when. Regardless of when it occurs, the upturn will provide talent management leaders an opportunity to make the talent management function look good.

By developing a turnaround plan and having your processes in order so that when the upturn does occur, your firm will be poised to act quickly and take advantage of the talent opportunities available.

keep reading…

Fast forward to January 15, 2010. What are some of the hiring challenges you’re now facing?

As you put the list together, consider these assumptions:

1. The trough of the economic downturn was reached in April 2009.
2. Job losses continued through October 2009, but at a declining rate, with job gains finally turning positive in November 2009, at around 20,000 or so.
3. The unemployment rate peaked at 9.7% in September 2009 and although still at 8.5% in January 2010, it is forecasted to drop to 7.0% by June 2010.
4. The number of searches on Google with the words “jobs” (e.g., “jobs nurses Seattle”) peaked at 7.3mm/day in April and has been declining by an average of 10%/month since then, but started inching up again in October 2009.
5. An article by Lou Adler on ERE in November 2009 suggested that this pickup was due to people who are fully employed but now getting itchy to leave. He contends that the pent-up demand for a new job is finally being seen and that this is a new group of people entering the job market. Note: this will be unexpected for unprepared companies.
6. Hiring for critical positions will begin in earnest three to four months before a general improvement in the jobless rate is seen. This will be exacerbated by an increase in voluntary turnover.

These assumptions are pretty realistic. The question is, are you ready for this scenario? If you are, here are some of the things you’ve probably been doing over the past six months:

keep reading…

While close to half of organizations consider workforce planning an integral part of their overall staffing and recruiting, only 27% of workforce planning processes are conducted by recruiting and staffing departments. See the chart, showing ownership of workforce planning.

That’s data from the Bersin & Associates’ Workforce Planning survey (which a lot of people from ERE took earlier this year). Sixty-seven organizations, mainly in the U.S. and Canada, responded. Bersin partnered with the Newman Group.

The majority of workforce planning processes are owned by individual business leaders, and thus disjointed from recruiting and even HR. At many organizations, such as T-Mobile, talent acquisition directors expressed a strong demand for workforce planning, but the responsibility to lead this program lay with the benefactors of the data, the business unit leaders.

Workforce planning needs to be an integral part of the overall staffing and recruiting organization. In this capacity, talent acquisition should not only create interest around the topic; it should help drive the process.

In order to gain a seat at the table, talent acquisition needs to share in the level of ownership and accountability for workforce planning.

In strategic workforce planning processes (something I’m writing about in the June Journal of Corporate Recruiting Leadership), 43% of workforce planning efforts are conducted by recruiting and staffing. As a result, 64% are able to better plan recruiting and staffing needs. Companies that implement consistent workforce planning processes throughout their entire organization rely heavily on their talent acquisition departments.

They take a different approach and involve recruiting: 53% of these organizations indicated that workforce planning is conducted by recruiting and staffing. One key driver for workforce planning is to link recruitment, development, and training decisions to organizational goals. Without involvement and support from talent acquisition departments, organizations will not achieve this goal.

In the June Journal of Corporate Recruiting Leadership, I’ve got an article about strategic workforce planning — a multi-functional discipline encompassing several human resources functions spanning a long-term planning period.

You’ll get much more detail there, but I wanted to whet your tastebuds with this sample paradigm for a workforce plan. keep reading…

Everyone knows that recruiting is currently in a down cycle, but there is no doubt firms will again need to recruit significantly to fuel growth and replace aging workers.

But do you have a plan that will enable you to explode out of box immediately as the downturn ends?

If you don’t have a feasible recruiting turnaround plan, you may be hurting your organization.

Research shows that the majority of recruiting organizations don’t have a documented recruiting strategy, let alone one specifically developed to deal with a recovery of the macro-economy. While one could argue that it’s difficult to plan when you don’t know exactly when things will improve, such an excuse is just that, an excuse.

Scenario planning, or a what-if analysis, prepares you to handle the turnaround no matter when it occurs.

As a recruiting manager, ask yourself — before one of your senior executives asks you first: keep reading…

Past talent initiatives have generally not aimed at people, but at improving efficiency, managing work flows, and ensuring quality. Now, service, innovation, and relationships are seen as the enablers of increased profit as the spotlight moves away from manufacturing and production.

HR has the opportunity to shine or be replaced by some other function as it is asked to ensure the availability of and quality of talent. Recruiters are central to that effort and many changes are underfoot.

keep reading…

by Dr. John Sullivan & Master Burnett

For many in corporate staffing, contingent labor management is an unpleasant activity often relegated to the lowest-cost outsourced service provider the organization could find, mainly because no one internally wanted to deal with it.

The work is largely considered mundane, process-oriented, and as a necessary overhead cost that provides little or no value.

If you work now or have worked in an organization that views contingent labor management this way, you work or have worked in an organization that has no clue about the future of strategic talent management!

Contingent Labor Taking Over?

keep reading…

Let me apologize upfront for this “rant” on HR’s failure regarding workforce planning, but I can’t think of another time where human resources as a profession appeared to be floundering to the point where it’s embarrassing itself.

All you have to do is read the paper on a regular basis to see that many firms and their respective HR departments are struggling to find ways to reduce labor costs. Rather than implementing sound and well-established workforce-reduction plans, HR and talent managers appear to be making it up as they go, all in an attempt to avoid layoffs.

More often than not, they are utilizing ineffective and often damaging approaches like furloughs, pay cuts, and voluntary buyouts. After years of clamoring to get a seat at the table, many HR departments are demonstrating why they shouldn’t have a seat; they struggle to deal with a predictable and reoccurring problem, economic downturns, and the related need to dramatically cut labor costs.

At least to me, the lack of a long-established plan of action at most firms is an unnecessary embarrassment when it should be a significant opportunity to stand and deliver.

Déjà vu All Over Again

The lame reaction by HR departments around the world wouldn’t be nearly as embarrassing if it weren’t for the cyclical nature of the economy and the fact that organizations have faced downturns every few years since the emergence of civilization, most recently in 2001 and 1994.

keep reading…

What’s hot in talent management changes quite often. Right now, there’s no hotter topic within the talent management community than workforce planning.

The reasons are simple: with the current economy driving revenues down dramatically, many senior executives are examining how to plan ahead in order to increase their firms’ capabilities, reduce costs, and survive the economic chaos likely to continue for some time.

Organizations need an effective talent management plan that will allow them to “explode out of the box” at the first sight of economic recovery, yet one that doesn’t threaten economic sustainability in the short term.

While most in talent management are continuing to react with stale cost containment approaches developed decades ago, strategic talent managers are stepping forward with robust workforce planning solutions and new work models that account for the significant changes in both how people work and live that have occurred in the last 20 years.

If you are interested in doing more than talking about being strategic, here are some recommended action steps to help improve your organization’s workforce planning.

keep reading…

“Talent Pools.”

“Talent Pipelines.”

“Talent Networks.”

All of these buzzwords describe the same thing — the idea of building a community of individuals whose skills you will need before there is an immediate opening for them. The idea is to strengthen the bonds between these people and the organization so that when the need arises, it’s a simple matter of picking up the phone.

In theory, of course.

In practice, I’ve seen too many software solutions aimed at creating these “communities” turn out to be little more than databases with candidate names and contact information. I’ve seen too many companies fall in love with the idea (which is a really good one), but not put in them time necessary to implement them in a way that realized the concept’s potential.

This Tuesday, I attended a NY Recruiting & HR Network Meetup and had the pleasure of hearing Linda Paul, the Director of Team Development at Meetup talk about her work. keep reading…

In today’s tumultuous economy, companies have been forced to make some devastating workforce decisions. In an effort to prepare for the future, best-practice companies are taking a long-term strategic approach to attracting and retaining their employees. Makes sense, doesn’t it? Given the number of massive layoffs, companies are looking to restructure their organization, streamline business operations, forecast staffing needs, and above all else, reduce costs. As a result, workforce planning is no longer a fad; it is a necessity. (Bersin & Associates is conducting a survey on this topic and we would love your participation. In return, we will provide you with an executive summary of the findings.)

Companies such as T-Mobile and McKesson are stepping up to the plate by establishing a formal workforce planning process with a designated leader in order to achieve results. So, what exactly is workforce planning? How can it help organizations achieve these goals? And why should you care?

keep reading…