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Workforce Planning vs. Talent Planning vs. Headcount Planning What’s the difference?

June 17, 2021 · Human Capital Management System, Succession Planning, Workforce Management,

 

Every business owner understands the benefits of a good hire—and the disadvantages of not having enough people with the right skills in the right places to serve customers and support growth.

Companies can better predict needs with well-executed planning, ensuring resources are used in the right place at the right time.

As organizations emphasize workforce planning, three new trends are emerging that are transforming how workforce planning is done and defining what “good” strategic workforce planning looks like.

 

Workforce planning

 

Workforce planning is a generic approach to HRM that involves the process of human resource management planning for the current and future workforce needs to be based on an analysis of the organization’s goals and current state, which is led by business leaders and HR.

The goal of workforce planning is to plan ahead for any new hiring needs, run analytics to focus on current sustaining employees, predict and evaluate any changes in the workforce, assist employees in developing skills for future growth, and stay ahead of the industry and economy’s competition.

 

Phases of workforce planning

Talent Planning

 

Talent Planning is a strategic approach to human resource management (HRM), the process of optimizing their organization for productivity, growth, and success – all while keeping their employees engaged in both their current and future careers. Retaining this next-generation workforce to remain competitive in any industry necessitates a focus on both skills mapping and talent mobility in any workforce planning and retention strategies that an organization develops, which is led by HR.

The goal of talent planning is to keep employees engaged and motivated in order for them to perform at their best. This includes proper onboarding procedures to ensure that new hires are welcomed and understand their new responsibilities completely. It’s also critical to make sure that all current employees are valued and that they have the tools and support they need to advance their careers within the company.

 

Phases of talent planning

 

Headcount planning

 

Headcount planning is a strategic exercise that ensures that an organization’s team members and organizational structure can meet short- and long-term objectives while staying within a set budget. The headcount planning process, also known as “org charting,” ensures that a company has the right number of people with the right skills to execute its strategy without overspending on labor.

The goal of headcount planning is to align talent strategies with organizational strategies and goals. Identifying skills that the current workforce lacks but that you require to succeed, concentrating recruiting teams on the right candidates—those with the skills you require in the near future, Allowing managers to identify and mentor employees who can fill critical skill gaps with additional training, Costs associated with hiring new employees and developing current employees, as well as salaries for your future workforce, are projected.

Headcount planning is handled by teams of department heads, senior executives, and human resources and finance specialists

 

Phases of headcount planning

 

How are they different from each other?

 

Although one of the workforce planning team’s responsibilities is to retain good employees, their primary goal is to build a great team. They also ensure that the organization’s current and future needs are met.

The primary role of talent management, on the other hand, is to maintain a reasonable retention rate. And to do so, it must ensure that the organization’s employees are happy, satisfied, motivated, and engaged, as well as that they continue to perform better and improve their skill sets for the benefit of themselves and the workplace.

Headcount planning is simple: do we have enough employees with the right skills in the right positions in the right locations? 

The multifaceted processes of workforce planning, talent planning, and headcount planning are hotly debated. However, by implementing these practices, a company can strengthen its workforce management and ultimately aim to develop a high-performing, streamlined, and engaged workforce. It is the collaboration that allows both the employees and the organization to grow.

 

 

How BizMerlinHR Can Help your organization in planning practices?

 

BizMerlinHR can automate a large portion of the data collection process. These solutions can provide useful insights, such as productivity analytics and employee progress toward individual goals. This information can make workforce planning much more feasible and less intimidating.

BizMerlinHR is designed to help managers and HR professionals keep a central repository of employee information, easily onboard new employees, track individual worker performance, keep track of payroll and compensation changes, and help a business manage its employees.