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Why the Topic, Workforce Planning, Is Essential For the Competitive Advantage of
Organizations
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Institution Affiliation
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Businesses today are opting for any strategies necessary to remain relevant and
blooming in the market. These strategies allow a company to produce goods or offer better
and cheaper services than its rivals. In doing so, a company can productively generate more
sales and superior margins than its market rivals. Among the many strategies that aid in
organizations' competitive advantage, workforce planning is essential to any organization. It
is an interaction of breaking down, gauging, and arranging labor force supply and demand,
surveying gaps, and deciding objective talent management interventions (Johnson & Brown,
2014). The cycle intends to guarantee an association has the ideal individuals with the correct
abilities in the perfect spots at the perfect chance to satisfy its directive and strategic goals.
The paper presents the benefits of workforce planning and why it is essential for
organizations' competitive advantage.
Strategic workforce planning is becoming progressively crucial for several causes.
First and foremost, changes in the demographic incorporate a higher need for workforce
planning. According to Siôn and Graham (2020), an elderly workforce poses different
complications, including a lack of in-demand services, reskilling tasks, and mass-retirement.
All these aspects limit an organization's competitive advantage. Lack of in-demand skills
reduces the productivity of an organization in terms of its services or products. As a result,
customers may fall back and opt for better services in other places. Mass retirement also costs
an organization as with a high number of retired workers; the production rate of products or
services reduces, thus threatening the organization's position in the market. However, with
workforce planning, an organization can stay ahead of labor market changes like the aging
workforce. The planning process gives room for analyzing one's force and identifying the
skill gaps present in the organization. In the case of aging workers, workforce demand is
high; thus, an organization should find a way to replace them as first as possible to avoid a
negative impact on organizational performance.
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Secondly, workforce planning creates a 'work-life balance, which is a common
expression in the Human Resource department. This suggests that the organization might be
accessible to flexible work sequences of action like voluntary booking, working from home,
and compacted work occupied weeks (Hota & Ghosh, 2013). A competitive advantage is
acquired by supplying workers with freedoms to achieve equilibrium between work and
personal life, staying beneficial and engaged supporters of the organization. Workforce
planning is essential to introduce these packages; however, this step is risky, especially to
minor companies that must prudently consider how positive workplace flexibility can be.
Regulating work hours or lessening the workplace time could damage some organizational
divisions, primarily when workers work cross-functionally to maintain beyond one region of
the business.
In addition to that, workforce planning provides room for performance measurement.
In any organization, HR divisions for the most part are liable for making performance
management structures. These structures authorize occasional assessment of employees’ job
performance over yearly assessments, corrective admonitions, and development strategies
(Anahita, 2018). Private businesses have strong workplaces that afford themselves to more
freedoms to connect with employees on a discrete and private level. This urges workers to
endeavour for high-performance stages when they recognize an organization is indeed
profound on their success. High-performing workers give organizations a competitive
advantage since they are beneficial, energetic, and totally engaged in their duties. Workforce
planning is fundamental for detecting the employer’s performance management structures,
preparing supervisors to create fair-minded criticism, and regulating the framework to speak
on workers' and bosses' issues.
Moreover, workforce planning aids in reimbursement. Pay rates and wages are by all
account not the only explanation workers stay with their bosses, yet employees who agree to
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their reimbursement and paybacks as sensible and thoughtful, are possibly going to reassess
prior to parting an organization that gives them unmistakable awards for their skills (Osibanjo
& Adeniji, 2012). More modest organizations likewise have a critical benefit in this area in
that they can frequently be flexible in locating salaries and rewards more than huge
organizations with fixed pay measures. Workforce planning that integrates reimbursement
and paybacks studies exposes regions for enhancement regarding the organization’s pay
structure. HR's assistance with assuring a complete reimbursement strategy can upsurge the
organization’s petition to employees, providing it with a competitive advantage from a
worker’s conservation point of view.
Workforce planning also aids in defiance. In several organizations, HR is answerable
for consistence with labour policies. This simple segment of HR saves administrations the
budget of employing legal advisors to guard commercial deeds or disbursement charges for
assertions developing out of unreasonable employment practices (Grobler & Zock, 2010).
Private companies should be struck by a legitimate situation, irrespective of whether by
substantial results, for example, case cost or theoretical impacts like reputation loss.
Organizations with however not many as fifteen representatives seem to be reliant upon state
laws and business laws. HR performs working setting arrangements predictable with
centralized, national, and local rules. Procedures vary from confirming the company’s
obligation to equivalent chance employment to actually unrelated subjects, for example,
quick rests, all of which sustain administrative arrangement and relieve the organization's
threat of responsibility for assertions from workers and interviewees. Money saved sanctions
the suggestion to fabricate its resources and advance its commercial disrepute and
competitive advantage.
Another benefit of workforce planning is that it aids in the recruitment of workers in
an organization. It includes keeping up to date with work market alterations and predictions
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for the word related part, including small businesses prejudiced by labourers’ availability. For
example, the U.S. Department of Labor Statistics establishes jobs for enrolled nurses will
increase by 26% between the years of 2010 and 2020. In any case, the American Association
for Colleges of Nursing foresees a nursing deficiency, in light of a increasing number of work
chances and the number of healthcare assistants quitting (Van et al., 2012). Vital workforce
planning, for example, generating enlistment actions at nursing schools before completion,
gives companies a competitive advantage alongside industry partners in pulling in competent
applicants. Organizations with inadequate assets and assets for best enrolling approaches
should look to innovative approaches of arriving at competent applicants, for example, open
houses and limited space gatherings that provide possible applicants a more critical gander of
the organization (Willis et al., 2018). Another alternative for liberated company enlisting is to
generate worker reference databases that will in general draw in applicants with skilful
attributes and abilities like those of existing employees.
The workforce planning process falls under human resource management, whose
history has concentrated on building theoretical agendas to study and understand its practical
actions. Human resource theories' general definition is an investigated belief that people
wish to be part of a helpful team that enables growth, development, and efficiency. Some of
these theories include human capital theory, agency theory, theory X, and theory Y. The
AMO (Ability, Motivation & Opportunities) theory regarding workforce planning proposes
that these are the three sovereign work system constituents that nature workers’
individualities and add to the organization's accomplishment (Osibanjo & Adeniji, 2012). The
workers can be very capable and inspired, but if they do not have the chance to donate or do
not succeed, it goes past their job performance. The 'work-life balance'- as mentioned earlier,
is among the significant benefits of workforce planning. When well utilized, the theory
assumes that workforce planning guarantees administrative leaders a management implement
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that can improve their workers’ performance. HR theories target to accomplish two primary
results: more efficient and effective job performance and improved worker inspiration and
obligation.
Despite the benefits of workforce planning, different authors have different
viewpoints and perspectives about this topic about organizations' competitive advantage. For
instance, Grobler & Zock (2010), on one hand, argue that despite the process aiding in
recognizing an organization's strengths and weaknesses which help in the future development
of the organization, managers face challenges with determining a time frame for planning.
Generally, managers prefer to work with short-term needs when it comes to developing plans.
However, the process only works best when it addresses long-term needs instead. In addition
to that, the outcomes of the process do not show immediately. On the other hand, Kiyonaga
(2014) contrast their argument by seeing the challenge's positive side. He claims that if a
workforce management scheme can be implemented to support in the planning process, an
organization will gather, trail and study data to get an extensive representation indulgent of
how the plan is or is not functioning.
In addition to that, Dumbach (2014) added that the workforce planning process is
unpredictable. He claims that despite the planning having the possibility to give an
organization a superior amount of stability by constructing one's workforce abilities, the
theory lacks the assurance that the employees one trains will stay in the company long
enough for one to obtain the profits of their investment. Moreover, the process somehow
provides an illusion of certainty. Dumbach (2014) argues that as much as the workforce
planning process makes one’s workforce better able to do their jobs, one might end up
teaching workers to execute tasks that become out-dated as the company and industry change.
With the rampant improvement of technology, many organizations are opting for digitalized
ways of running businesses which is essential for their competitive advantage. This aspect
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gives one a deceitful sense of security and may inhibit one from responding fast enough to
growths.
Conclusively, workforce planning is an essential topic for the competitive advantage
of organizations. This is because it falls under the human resource management that majorly
deals with the workers' welfare. Workers are the organization; thus their performance
determines the competitive advantage of organizations. This is evident in the matter of
changes in demographics, for instance. Aging workers cause mass retirement that negatively
affected an organization's productivity in terms of their products or services. As a result, an
organization is at risk of losing its customers. Workforce planning, however, handles such
matters, thus serving as a saviour to the competitive advantage of an organization like dealing
with recruitment and compliance. However, there have been debates on the benefits of work
planning and its challenges for organizations' competitive advantage. Not only is it costly, but
it is also unpredictable with only long-term needs that result in long-term outcomes. Despite
the discussions, workforce planning remains an essential topic for the competitive advantage
of organizations as discussed; it offers significant benefits vital to the organization's position
in the market.
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References
Anahita S. (2018). Workforce Forecasting Models: A Systematic Review, Journal of
Forecasting, 37(7), Pp. 739-753, Https://10.1002/For.2541
Dumbach M. (2014) Managerial Implications. In: Establishing Corporate Innovation
Communities. Market- Und Unternehmensentwicklung / Markets and Organisations.
Springer Gabler, Wiesbaden. Https://Doi.Org/10.1007/978-3-658-03695-9_25
Grobler, A. & Zock, A. (2010). Supporting Long-Term Workforce Planning With a Dynamic
Aging Chain Model: A Case Study from the Service Industry, Human Resource
Management, 49(5), Pp. 829-848, Https://Doi.Org/10.1002/Hrm.20382
Hota, J. &Ghosh, D. (2013). Workforce Analytics Approach: An Emerging Trend of
Workforce Management (September 28, 2013). AIMS International Journal, 7(3),
Pp. 167-179, SSRN: Https://Ssrn.Com/Abstract=2332713
Johnson, G. L., & Brown, J. (2014). Workforce Planning Not A Common Practice, IPMAHR Study Finds. Public Personnel Management, 33(4), Pp. 379–388.
Https://Doi.Org/10.1177/009102600403300403
Kiyonaga, N. B. (2014). Today Is The Tomorrow You Worried About Yesterday: Meeting
The Challenges Of A Changing Workforce. Public Personnel Management, 33(4),
Pp. 357–361. Https://Doi.Org/10.1177/009102600403300401
Osibanjo, O. & Adeniji, A. (2012). Human Resource Management: Theory and Practice.
Siôn C. & Graham W. (2020). System Dynamics and Workforce Planning, System Dynamics,
Pp. 431-457, Https://10.1007/978-1-4939-8790-0
Van G., M., Batenburg, R.S. & Van Der Velden, L.F. (2012). Ten Years of Health Workforce
Planning In the Netherlands: A Tentative Evaluation of GP Planning As an
Example. Human Resource Health 10(21). Https://Doi.Org/10.1186/1478-4491-1021
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Willis, G., Cave, S. & Kunc, M. (2018). Strategic Workforce Planning In Healthcare: A
Multi-Methodology Approach, European Journal of Operational Research, 267(1),
Pp. 250-263, Https://Doi.Org/10.1016/J.Ejor.2017.11.008