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Infohrm Survey Shows 87% of Organisations Have Positive Plans for Workforce Planning but ROI Measurement Remains an Issue

  • 30 November, 2009 11:13

<p>Sydney, 30 November 2009 - The number of organisations engaged in workforce planning increased to 60% in 2009, representing a rise of 10% over 2008. Of those not yet conducting workforce planning, one quarter anticipate introducing the practice within the next twelve months while 29% intend to do so within the next one to two years. Only 13% of organisations have no plans to introduce workforce planning.</p>
<p>The findings were released in Workforce Planning – Securing HR’s Role in the Business, an annual survey into workplace planning practices conducted by global workforce planning, reporting and analysis solutions leader, Infohrm. This year's survey involved 780 participating organisations, 60% of which currently have workforce planning processes in place.</p>
<p>The overwhelming majority of respondents believe that workplace planning provides a positive benefit with 81% of respondents suggesting the practice is moderately or highly valuable to the business. Eighteen percent attribute the value mainly to HR while 1% of respondents stated that workforce planning was “not very valuable”. Sixty eight percent also stated that workforce planning provides them with a competitive advantage.</p>
<p>Beyond perception however, evaluation of workforce planning implementations remains a concern. A failure to measure the impact of workforce planning was one of the main findings identified in the 2008 Infohrm survey and it continued to be an issue this year with 55% of organisations as yet unable to demonstrate the impact of their workforce planning implementation.</p>
<p>“Infohrm has consistently found that organisations that fail to evaluate their workforce planning processes struggle to maintain commitment from the business. These results indicate a substantial gap in the ability of organisations to measure the results of their efforts, said Anastasia Ellerby, Managing Director, Infohrm.</p>
<p>Not only are organisations struggling to demonstrate an impact of workforce planning but the ability to identify the true financial return from such a practice is still uncommon. Only 6% of organisations indicated they could confidently assess the monetary value or return on investment (ROI) of their workforce planning efforts, while 15% stated they could “somewhat” do so.</p>
<p>The study suggests that more attention should be paid to key measurements including accuracy of forecasting efforts, reductions in termination and attrition rates, reductions in talent gaps – especially for critical positions, reductions in time-to-fill, and financial metrics that can be linked to workplace planning efforts.</p>
<p>Growth to continue in 2010</p>
<p>Despite the difficult economic conditions almost half (48%) of survey respondents anticipate their investment in workforce planning will increase within the next 12 months. This compares with 33% in 2008. The number of organisations expecting a decrease in budget remained the same at 3%. The report attributes this boost in demand to a number of factors including organisational restructuring, optimism following recent economic forecasts predicting a return to growth, and increased demand following an organisation's initial workplace planning efforts</p>
<p>The major drivers for adopting workforce planning in 2009 were business growth, the shortage of critical skills, changes in business strategy and the shortage of available talent. The most popular tools and technologies used to support workforce planning processes included spreadsheets (used by 251 organisations), workforce planning tools (used by 142), recruiting or staffing tools (125), and business intelligence and analytical tools (120).</p>
<p>Ellerby added, “It's clear that workforce planning continues to grow in maturity as a business process. Each year more and more organisations invest in workforce planning and their level of investment increases over time as they realise the significant financial and human capital returns that workforce planning provides. With the beginnings of the economic turnaround now apparent, it's time to put those investments to work, developing the foundations for a strengthened, more strategic workforce.”</p>
<p>About the Survey</p>
<p>The survey was conducted by Infohrm during May 2009 and involved 780 organisations across Asia Pacific, North America and Europe. This year's survey more than doubled the number of 2008 respondents and involved HR practitioners, C-level executives, IT and finance personnel. Participating organisations ranged from less than one thousand staff through to more than fifty thousand.</p>
<p>About Infohrm</p>
<p>Infohrm is the global leader in on-demand workforce planning, reporting, and human capital analytics solutions. With over 25 years of experience, and a strong customer base consisting of Fortune 1000, non-profit, and government clients, Infohrm has paved the way for organisations to measure the impact of human capital initiatives and drive business results. The Infohrm solutions couple a leading edge on-demand technology platform with strategic consulting and training services to focus on the analysis of data to help organisations make informed decisions around human capital practices. In April 2008, Gartner named Infohrm to its “Cool Vendors for Human Capital Management Software” report. Learn more at</p>

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