Many companies make today's difficult human capital decisions without the data and analytics that can best position their business for tomorrow - a mistake avoidable by using strategic workforce planning, according to a report released by The Conference Board, a business membership and research association.
When looking to reduce human capital's huge share of a company operating budget, drastic cost-cutting measures such as slashing headcount, freezing hiring and suspending training can cause long-term collateral damage. Avoiding rigid, across-the-board targets, SWP allows companies to make selective, strategic decisions about where to invest and where to trim, and whether to buy, rent, build or redeploy talent to meet future needs.
"Strategic workforce planning helps companies look beyond short-term budget or headcount planning to examine organizational capacity issues," says Mary Young, senior research associate at The Conference Board. "It also helps identify and manage human capital risks. Unlike older, more operational HR approaches, the primary beneficiary of SWP is the business."
