A Comprehensive Guide to Manpower Planning: Process And Best Practices
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Manpower planning preparation is among the essential parts of HR management activities. Through the formula of workforce planning, companies ensure an appropriate workforce schedule to sustain service operations.
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As the most valuable asset in a company, HR must meet the expectations and needs of the company. Otherwise, there is a high possibility that the company might stumble.

So, what is manpower preparation and what are its methods? Learn the complete review in the following Mekari Talenta post.

Manpower preparation is a procedure of recognizing, preparing, estimating, and satisfying the workforce with the right amount, time, place, and cost according to the company's requirements.

However, nowadays, the term workforce planning is not only about fulfilling labor force demand and supply.

But likewise about how companies can guarantee that existing workforce can have the abilities required by the company and determine what technology is required to enhance the skills of these employees.

Marcus Lemonis, an American business owner, stated, "The client is second for me best behind the staff member." It means that business ought to constantly put their staff members well-being first above all else.

The strategic implementation of manpower planning can have effects not only on HRD however on the general business also.

Here are some advantages that companies can acquire through good workforce preparation:

- Increasing business productivity as the business can approximate the quantity and kinds of workforce and innovation needed.

  • Enabling the company to have quality labor force in line with the business requirements and goals.
  • Detecting issues early in the management system, particularly in the HR field, in addition to mitigation techniques.
  • Creating effective workforce administration so that when there is employee turnover, the company does not have vacant positions triggering disruptions in the company.
  • Facilitating HR managers to make strategic choices in establishing the labor force in regards to technology, abilities, and worker fulfillment.
  • Quoting Deloitte, workforce planning can cost-effectively manage labor costs. This is since the company can budget the variety of workers and expenses accurately.
  • Creating customer complete satisfaction. With great workforce planning, the business management immediately has excellent systems and requirements, which impact customer fulfillment.

    Manpower Planning Objectives

    The primary objective of implementing manpower planning is to make sure the schedule of labor force according to the company's needs. This planning procedure is not an activity that is done once or two times. Instead, it is a continuous process as long as the business exists.

    Moreover, every 5-10 years, commercial technology constantly alters and evolves, therefore business inevitably need to adjust.

    For example, ten years back, cloud computing technology or synthetic intelligence (AI) were not well-known by industries. However, just recently, these technologies have actually become properties for companies to make it through in the digital era.

    Companies are needed to meet these requirements by having Human Resources or workforce efficient in developing and running such innovations. Manpower planning process is likewise required when a company sees brand-new business opportunities and wishes to execute them.

    Such jobs require time, expense, workforce, and technology. If done quickly, these chances can become dangers causing losses.

    For example, HR in your company has actually recruited 5 workers. However, the needed technology is not offered yet, the task timeline is uncertain, and even the spending plan does not meet the task's expectations.

    Here is where workforce preparation plays its function in guaranteeing that these elements are satisfied properly according to the company's requirements. Thus, the company chances can run as expected.

    In other words, another goal of manpower preparation is to make sure no inequality among the labor force, time, location, technology, and economy.

    According to The 2022 Global Talent Shortage by ManpowerGroup, the average skill shortage worldwide reached 75 percent in 2022.

    The sectors most affected include federal government, education, health care, innovation, manufacturing, finance, and retail.

    Meanwhile, according to the World Bank report in 2018, Indonesia needs at least 9 million IT employees between 2015 and 2030.

    This is also supported by data from Korn Ferry in 2017, which forecasted Indonesia would deal with a skilled labor deficit of as much as 3.8 million by 2030.

    If both of these scenarios happen in your company, the company growth rate will be significantly slower. Companies will also have a hard time to contend and survive, particularly in the future.

    One method to narrow the skill space or even improve the business's capability to fulfill its workforce needs is through manpower preparation.

    Best Practices in Manpower Planning Process

    As a guideline, there are 4 primary actions in tactically establishing manpower planning, as follows:

    Know the Company's Business Conditions and Plans

    Although manpower planning is an ongoing process that runs constantly, every year the company has company plans and evaluates the existing and future conditions.

    HR supervisors, in this case, must collaborate with all departments and company units. What are the strategic plans of each service unit and what funds are needed?

    To get to understand your company to align with workforce preparation, a minimum of consider the list below factors:

    - The existing workforce, how many service systems there are, and the types of tasks currently available
  • The current work culture. Does it currently meet expectations for the company, employees, and customers?
  • Business goal top priorities both short-term and long-term
  • The kind of people and abilities required by each service system
  • Also, know the growth stage of your company, whether it's start-up, development, mature, or decrease. This will figure out the required labor force capability.
  • Potential company risks both existing and future ones.

    Mapping the Company's Future Workforce Needs

    The next action is to map the future labor force requires or workforce forecasting. Through workforce forecasting, you can estimate the needed labor force and the abilities needed by these staff members. Manpower forecasting itself has 2 methods: internal and external.

    Internal analysis includes:

    - Expert analysis involving all employees consisting of stakeholders from each department and C-level. This can be done through surveys or informal discussions.
  • Workload analysis by considering the existing work culture, functions, and the abilities most required by each department or company system.
  • Workforce analysis, which includes observing the variety of recruits, yearly turnover rates, participation records through online applications, and worker performance.
  • Other workforce-related analyses such as financial and service analyses.

    While external analysis includes:

    - Analysis of the job market patterns and its impact on the company.
  • Third-party analysis. Whether it's stakeholders who can provide external data or innovation suppliers who can support the company's workforce preparation procedure. For instance, making use of worker recruitment applications.

    Develop Workforce Programs

    The next step is to develop labor force programs that include recruitment process designs, Standard procedure, and labor force positioning.

    Additionally, it must be noted that in workforce preparation, the business not only concentrates on getting the needed labor force however also on how to maintain it.

    Compensation programs, working hours, lacks, availability, and other approaches to ensure worker fulfillment with the company are crucial aspects not to be neglected.

    Design Workforce Development Programs

    Finally, labor force advancement must be executed to meet the company's required skill demands. As discussed previously, manpower preparation not only focuses on hiring new skill however also on establishing existing talent.

    According Huawei's Future of Work: 2022 Digital Talent Insight report, there are three primary programs that companies can carry out in workforce advancement programs:

    - Leadership: Building a labor force culture in the management phase so that the existing labor force has the same mindset as the company's vision.
  • Upskilling and reskilling: Developing existing employee abilities or presenting new skills to employees.
  • New skilling: Providing new abilities to new graduates, for instance, through internship programs or external training.

    Examples of Manpower Planning

    Here are some research study cases that describe some cases on how manpower planning can be utilized.

    Manpower Planning on Recruitment Process

    Manpower preparation typically used in the recruitment procedure considering that some companies have reasons to employ more staff members. With efficient workforce strategy, business can recognize its objective while figuring out the number of staff members they need to finish some tasks.

    For example, a producing business that produces steel products for building tasks analyses its sales number and discovered that the variety of customers may increase 2 times within a year. The company understands that it doesn't have sufficient staff members to fulfill the production numbers for the increasing consumer. This forecast indicates the requirements of working with additional workforce to satisfy production quotas.

    Then, they develop a plan and identify the number of employees required to increase production number. The company learns that they need 20% more workforce to run the plan and starts recruiting brand-new workers. Over two years, they can accomplish their objective to meet the need of production for their increasing clients.

    Manpower Planning on Leadership

    Leadership typically stands as a critical part within a company's workforce. Effective leadership typically results in enhanced performance, the implementation of brand-new policies, the cultivation of healthy work environments, and the assistance of effective processes.

    Moreover, it is normally essential in fostering readiness for change. As a service goes through functional shifts, proficient leadership can considerably aid the modification process. A workforce plan typically examines the current leadership capacity within the service, highlighting the potential need for management development.

    For circumstances, one company focusing on individual finance assessment, conducts an analysis of its HR metrics and observes a constant decline in worker engagement. It anticipates that only 20% of its existing employees might remain within the next 3 years.

    Recognizing the need for workplace improvement to strengthen staff member relations and retention rates, it creates brand-new policies. However, it acknowledges the need for boosted leadership to effectively implement these policies and accomplish their objectives.

    Consequently, the business develops a labor force plan that includes training and development initiatives for its existing leadership. Through participation in management advancement programs, both management and senior workers improve their leadership competencies.

    Then, staff members begin to position higher trust and respect in their management figures, thereby fostering a more positive work environment environment. As an outcome of the enhancement in its management capabilities facilitated by enhanced workforce preparation, it observes an increase in its predicted retention rates.

    Manpower Planning Through HRIS

    One technique in conducting workforce planning is by counting on HRIS.

    Through HRIS technology, you can use workforce information more quickly and comprehensively. This information can then be used to figure out the future direction of the service, especially in HR.

    According to Gartner's report, only 12% of companies successfully utilize workforce information, especially in assisting service decision-making.

    One supplier of HRIS in Indonesia is Mekari Talenta.
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    Mekari is a software application that has features covering multiple HR functions such as online presence, payroll, performance management, employee self-service, staff member database management, and manpower planning.

    With Manpower Planning (MPP) feature, business no longer needs to do manual data analysis, mapping, estimation, and determination of work strategies. The allowance of workforce needs is more transparent to prevent unpredictability and to tone down recruitment costs.