Manpower planning planning is among the vital parts of HR management activities. Through the formula of workforce planning, companies make sure an appropriate workforce accessibility to sustain service operations.
As the most important asset in a business, HR must meet the expectations and requirements of the company. Otherwise, there is a high possibility that the business could stumble.
So, what is manpower planning and what are its methods? Discover the total review in the following Mekari Talenta article.
Manpower planning is a process of determining, preparing, estimating, and satisfying the workforce with the ideal quantity, time, place, and cost according to the company's needs.
However, nowadays, the term workforce preparation is not only about satisfying workforce need and supply.
But also about how companies can guarantee that existing workforce can possess the skills needed by the company and determine what innovation is needed to enhance the skills of these workers.
Marcus Lemonis, an American entrepreneur, said, "The customer is number 2 for me ideal behind the worker." It implies that company needs to constantly put their employees welfare initially above all else.
The tactical implementation of manpower planning can have impacts not just on HRD however on the total company too.
Here are some benefits that companies can get through great workforce preparation:
- Increasing service productivity as the business can approximate the amount and kinds of labor force and innovation required.
- Enabling the company to have quality workforce in line with the company requirements and goals.
- Detecting issues early in the management system, particularly in the HR field, along with mitigation strategies.
- Creating efficient workforce administration so that when there is worker turnover, the business does not have uninhabited positions causing interruptions in the organization.
- Facilitating HR supervisors to make tactical decisions in developing the labor force in regards to innovation, skills, and employee satisfaction.
- Quoting Deloitte, manpower planning can cost-effectively handle labor costs. This is because the business can budget plan the variety of workers and expenses properly.
- Creating client complete satisfaction. With good manpower preparation, the company management instantly has excellent systems and requirements, which affect client satisfaction.
Manpower Planning Objectives
The main objective of executing workforce planning is to make sure the schedule of workforce according to the company's requirements. This preparation process is not an activity that is done once or twice. Instead, it is a constant process as long as the company exists.
Moreover, every 5-10 years, industrial technology always changes and progresses, therefore business undoubtedly need to adjust.
For instance, 10 years earlier, cloud computing technology or expert system (AI) were not popular by markets. However, just recently, these innovations have ended up being possessions for business to survive in the digital age.
Companies are needed to satisfy these requirements by having Human Resources or workforce efficient in developing and running such innovations. Manpower planning procedure is also needed when a business sees brand-new organization opportunities and wishes to execute them.
Such jobs require time, expense, manpower, and innovation. If done hastily, these opportunities can turn into dangers leading to losses.
For example, HR in your business has hired 5 workers. However, the needed innovation is not offered yet, the job timeline is uncertain, and even the spending plan does not meet the project's expectations.
Here is where manpower planning plays its role in guaranteeing that these components are satisfied appropriately according to the company's needs. Thus, the organization chances can run as expected.
Simply put, another objective of manpower planning is to make sure no mismatch amongst the workforce, time, place, innovation, and economy.
According to The 2022 Global Talent Shortage by ManpowerGroup, the average talent scarcity worldwide reached 75 percent in 2022.
The sectors most impacted consist of government, education, healthcare, technology, manufacturing, financing, and retail.
Meanwhile, according to the World Bank report in 2018, Indonesia requires a minimum of 9 million IT employees between 2015 and 2030.
This is likewise supported by information from Korn Ferry in 2017, which predicted Indonesia would deal with a proficient labor deficit of up to 3.8 million by 2030.
If both of these situations occur in your company, the company growth rate will be substantially slower. Companies will also have a hard time to complete and survive, specifically in the future.
One strategy to narrow the skill gap or even boost the business's capability to satisfy its labor force requires is through manpower preparation.
Best Practices in Manpower Planning Process
As a standard, there are 4 main steps in strategically developing manpower planning, as follows:
Know the Company's Business Conditions and Plans
Although workforce preparation is a continuous process that runs continuously, every year the company has service strategies and assesses the current and future conditions.
HR managers, in this case, should coordinate with all departments and company units. What are the tactical plans of each company system and what funds are needed?
To learn more about your business to align with workforce planning, a minimum of think about the following factors:
- The present labor force, how many service units there are, and the types of jobs currently offered
- The existing work culture. Does it already meet expectations for the company, staff members, and clients?
- Business objective concerns both short-term and long-lasting
- The type of people and skills needed by each business unit
- Also, understand the development phase of your business, whether it's startup, growth, mature, or decline. This will determine the required labor force capacity.
- Potential organization threats both existing and future ones.
Mapping the Company's Future Workforce Needs
The next action is to map the future labor force needs or manpower forecasting. Through manpower forecasting, you can estimate the required workforce and the abilities required by these staff members. Manpower forecasting itself has two approaches: internal and external.
Internal analysis includes:
- Expert analysis involving all workers including stakeholders from each department and C-level. This can be done through surveys or informal discussions.
- Workload analysis by thinking about the existing work culture, functions, and the abilities most required by each department or service system.
- Workforce analysis, which includes observing the variety of recruits, annual turnover rates, presence records through online applications, and worker efficiency.
- Other workforce-related analyses such as financial and organization analyses.
While external analysis includes:
- Analysis of the task market patterns and its effect on the company.
- Third-party analysis. Whether it's stakeholders who can supply external data or technology suppliers who can support the company's workforce preparation process. For instance, making use of employee recruitment applications.
Develop Workforce Programs
The next action is to establish labor force programs that include recruitment procedure designs, Standard procedure, and labor force placement.
Additionally, it ought to be noted that in manpower planning, the business not only concentrates on getting the required labor force however likewise on how to retain it.
Compensation programs, working hours, lacks, ease of access, and other approaches to make sure employee satisfaction with the company are vital elements not to be neglected.
Design Workforce Development Programs
Finally, labor force advancement need to be executed to satisfy the business's required ability demands. As discussed previously, manpower planning not only concentrates on hiring new talent but also on developing existing skill.
According Huawei's Future of Work: 2022 Digital Talent Insight report, there are 3 primary programs that business can implement in labor force advancement programs:
- Leadership: Building a workforce culture in the management stage so that the existing workforce has the very same state of mind as the company's vision.
- Upskilling and reskilling: Developing existing employee skills or introducing brand-new abilities to workers.
- New skilling: Providing new skills to brand-new graduates, for example, through internship programs or external training.
Examples of Manpower Planning
Here are some study cases that discuss some cases on how workforce preparation can be used.
Manpower Planning on Recruitment Process
Manpower planning often used in the recruitment process considering that some companies have reasons to employ more employees. With efficient manpower technique, business can recognize its goal while figuring out the number of staff members they need to finish some jobs.
For example, a making company that produces steel items for building and construction projects analyses its sales number and found that the number of customers might increase 2 times within a year. The company recognizes that it doesn't have enough staff members to fulfill the production numbers for the increasing consumer. This forecast indicates the requirements of employing extra labor force to meet production quotas.
Then, they develop a plan and determine how numerous staff members required to increase production number. The business discovers that they require 20% more workforce to run the strategy and starts recruiting new workers. Over two years, they can accomplish their goal to fulfill the demand of production for their increasing customers.
Manpower Planning on Leadership
Leadership typically stands as a vital component within an organization's labor force. Effective leadership generally results in enhanced productivity, the implementation of new policies, the cultivation of healthy workplace, and the assistance of efficient procedures.
Moreover, it is typically essential in cultivating readiness for change. As a company goes through functional shifts, adept leadership can significantly assist the modification process. A labor force plan frequently evaluates the present leadership capability within the organization, highlighting the possible requirement for management advancement.
For example, one business focusing on individual financing assessment, performs an analysis of its HR metrics and observes a constant decrease in worker engagement. It expects that just 20% of its existing workers may remain within the next three years.
Recognizing the requirement for work to bolster staff member relations and retention rates, it designs new policies. However, it acknowledges the need for improved leadership to efficiently implement these policies and attain their objectives.
Consequently, the company creates a workforce strategy that includes training and development efforts for its current leadership. Through involvement in management advancement programs, both management and senior personnel fine-tune their leadership competencies.
Then, employees begin to put greater trust and respect in their leadership figures, thereby cultivating a more favorable work environment environment. As an outcome of the enhancement in its leadership capabilities assisted in by boosted labor force planning, it observes a rise in its projected retention rates.
Manpower Planning Through HRIS
One method in carrying out manpower preparation is by relying on HRIS.
Through HRIS technology, you can use workforce data more quickly and adequately. This information can then be used to determine the future direction of business, particularly in HR.
According to Gartner's report, only 12% of companies successfully make use of workforce data, especially in helping business decision-making.
One supplier of HRIS in Indonesia is Mekari Talenta.
Mekari Talenta is a software application that has features covering multiple HR functions such as online presence, payroll, efficiency management, staff member self-service, staff member database management, and manpower planning.
With Manpower Planning (MPP) feature, company no longer needs to do manual data analysis, mapping, estimation, and decision of work plans. The allowance of manpower requirements is more transparent to avoid uncertainty and to tone down recruitment expenses.
