Introduction to Manpower Planning
Manpower planning is the strategic alignment of an organization’s people resources with current and future business needs.
What is manpower planning?
What is not manpower planning?
Effective workforce planning methodologies will enable a company to develop a strategic road-map regarding its workforce.
Manpower Planning Components
1. Strategic Business Definition
2. Supply Analysis
3. Demand Analysis
4. Gap Analysis
5. Road Map
Manpower Planning Process
Workforce Supply Analysis
A workforce supply analysis provides a data-driven model of a company current composition and characteristics.
A workforce supply baseline analysis:
Results from the supply analysis will:
A structured approach should be utilized to develop the workforce supply analysis.
Workforce Demand Analysis
Analysis of baseline demand provides a quantifiable, multi-perspective view of the utilization of core organization services.
The workforce demand baseline analysis:
Results from the demand analysis will:
A structured approach to integrate the data elements involved in the baseline demand analysis.
How to develop an effective workforce planning?
To develop a workload-based workforce planning approach and methodology according to industry and international best practices and train human resource staff members on its administration and associated tools.
Near Term (1-6 months) Initiatives
Medium Term (6-12 months) Initiatives
1. Workforce baseline assessment
2. Supply analysis
3. Demand analysis
4. Workforce gaps and risk analysis
5. Strategic workforce plan and approach
How to calculate manpower full-time equivalent employees?
Three key design principles are considered in order to develop manpower requirements:
1. Lean Organization
Manpower requirements should be optimized ensuring the building of inhouse capabilities according to company needs and management & oversight of other outsourced functions continuously or on an as-needed basis.
2. Increasing Efficiency Factor
An Efficiency Factor is adopted to account for the increasing efficiency / productivity of manpower with time for repetitive tasks, allowing the same workload to be completed by less FTEs.
3. Organization Phasing
Manpower requirements for each function depends on the organization lifecycle stage of a given company.
How to calculate manpower FTEs?
The manpower requirements are calculated by estimating workload volumes and FTE/driver ratios.
Workload Volumes + FTE Efficiency Ratios = Output (Required FTEs)
1. Workload Volumes
Workload volumes for each functional activity. For example, 4 feasibility studies per year.
2. FTE Efficiency Ratios
Number of FTEs required for a given activity. For example, 0.5 FTE per feasibility study.
Required FTEs for each activity. For example, 2 employees required in a year (4*0.5 = 2 FTEs).