- Projects the organization’s workforce structure and human capital costs through the planning period;
- Simulates human resources flows of hires, transfers, promotions, quits, and retirements over a multi-year period of time;
- Bases projection on historical experience and user specified input for anticipated increases/decreases in staff, pay increases, and other significant events;
- Analyzes the impact of workforce changes on HR costs; and,
- Analyzes trade-offs between alternative labor inputs for a specified budget.
This capability addresses causal relationships affecting human resources flows, including demand factors such as corporate growth, change in product mix, or changes in the regulatory environment, and supply factors such as the unemployment rate, long-range demographic trends, and industry-wide salary levels.
The overall objectives of workforce planning are to:
- Minimize HR costs for a specified size and quality of a workforce;
- Maximize a quality workforce within a given budget; and,
- Guide hiring (numbers of new hires, skill levels of new hires, timing of hires), mix of different staff, retirement, and other personnel-related policies to achieve desired goals for size and quality of workforce.
LeadFirst applies operations research and other quantitative approaches to workforce planning, such as simulation and optimization modeling. Our human resource modeling utilizes analytical computer-based tools that focus on HR events (hires, training, quits, promotions, separations), HR mix and utilization rates, and HR costs. Major dimensions of analysis include: occupational categories; major corporate division; cost centers within a division; permanent full-time, part-time, and temporary workers; and number of labor hours as well as number of employees. LeadFirst provides software to managers which is user-friendly, operates on desktop computers, and is designed for managers not familiar with computer operations.