Strategic workforce planning is critical when managing the needs of employees, customers, and business operators. While the U.S. remains a key leader in global startup operations, there's always room when it comes to finding the best workforce strategy for your U.S. business.
In this article, we'll examine how strategic workforce programs can help organizations operating outside of the U.S. thrive in the face of changing global business conditions.
For organizations that study the strategic workforce planning process, you must have a thorough understanding of its most basic components.
Strategic workforce planning should be part of an organization's business strategy to tap into the right talent with the right skills at the right time. The right workforce** will help your company achieve its overall business strategy and goals.
By aligning workforce strategy with business goals, operational workforce planning goes beyond standard employee HR functions and training programs. Essentially, strategic workforce planning (and its by-products) is about talent needs, looking at potential skills gaps, and effectively closing those gaps.
The ideal approach to incentives around strategic workforce planning is to analyze an organization's current workforce, including its skills, capabilities, and workplace demographics. By understanding the strengths and weaknesses of your current workforce, your business can make informed decisions about hiring, training, and talent development.
In addition, strategic workforce planning involves analyzing future workforce needs based on factors such as industry trends, technological advancements, and organizational growth or contraction. This forward-looking approach enables organizations to proactively address potential talent shortages or surpluses. In this process, future scenario planning is crucial.
The strategic workforce planning process also involves developing strategies and initiatives to attract, retain, and further develop the ideal employee pool. It also includes identifying and developing key roles within the organization and how to implement them to achieve long-term strategic goals.
Effective strategic workforce planning can also improve competitiveness and adaptability both locally and internationally. This competitive and adaptable key result also motivates your employees to seize growth opportunities while being well-prepared and aligned with the company's long-term vision.
Essentially, strategic workforce planning is essential for organizations looking to remain agile and competitive in the ever-changing international business environment.
Now that we've looked at how strategic workforce planning can benefit the U.S. industry, we can walk you through how to implement a workforce plan. Strategic workforce planning, especially in the U.S., can vary greatly depending on your organization's industry and what you're trying to achieve as a business.
However, there are some major through-lines that can be adapted to the needs of any business. These alignments are implementations that can enhance the strategic workforce planning process and be leveraged by any U.S. business.
While the scope and scope of a workforce program may differ from how it is implemented in ways such as economic incentives, or even include retirement assistance, there are many measures you can take advantage of to attract and retain the best workforce.
Here are some examples that can help you execute your next action plan.
Compensation and benefits.
Offering competitive compensation, performance bonuses, and a full capacity benefits package can be an essential incentive to attract and retain top talent in the United States. These benefits include health insurance, retirement plans, paid time off, and more. The U.S. doesn't operate on a universal healthcare platform, so having a comprehensive benefits structure is critical to employee retention.
Professional development opportunities.
Many businesses offer employees the opportunity to upskill and advance their careers through training seminars, tuition reimbursement, and internal support to earn advanced degrees or certifications. Not only will this help your organization retain top talent, but it will also motivate existing employees to improve their skills.
Organization of work. When businesses offer flexible work arrangements, such as remote work, a combination of flexible working hours and a manageable workweek can be an important incentive to attract skilled workers, especially for employees looking for a work-life balance.
Career development. Organizations can also implement workforce strategies that provide clear career paths, additional mentoring programs, and opportunities for advancement within the organization. This motivates employees to stay and grow with the company.
Employee recognition and rewards.
Recognizing and rewarding employees for outstanding performance through bonuses, promotions, awards, and employee recognition programs can simultaneously boost morale and encourage employees to excel in their chosen field. While you may not have to implement all of the above strategies, it should help to have them as part of your normal business operations.
Welfare initiatives. Employers who implement workplace strategies such as wellness programs, mental health supports, and a focus on employee well-being can be attractive incentives for employees seeking a supportive and healthy work environment. As mentioned in previous strategies, the lack of universal health care in the U.S. means that employee wellness programs are critical to employee retention.
Profit sharing and options.
Some organizations can offer profit-sharing plans or even options to their employees to align their interests with the financial success of the organization.
Tuition Reimbursement. Financial assistance for continuing education and professional development can be a valuable incentive and a great workforce strategy, especially for industries that require ongoing upskilling, such as IT, healthcare science and research, and the legal profession. As a result, tuition reimbursement has become an increasingly popular workforce strategy in the United States.
Diversity and inclusion initiatives.
Organizations that prioritize diversity and inclusion are likely to attract a wider range of candidates, as job seekers increasingly value diversity in the workplace. As of the past few years, thriving businesses in the U.S. typically have dynamic diversity incentives.
Retirement planning. In the U.S., offering a 401(k) plan, along with your standard employer contributions, can help employees save for retirement, making your organization more attractive to those looking for long-term financial security.
Employee Assistance Program.
EAP can provide confidential advice and support to employees to address a variety of personal and work-related issues, contributing to their well-being. Depending on the scope of your business and the nature of your work, EAP may be the ideal workforce strategy.
Community Engagement & Corporate Social Responsibility.
If your business engages in community engagement, such as social responsibility initiatives, it may attract employees who value socially responsible employers. These can be achieved by prioritizing philanthropic engagement or social outreach.
Innovative workspaces.
A creative and innovative office environment, as well as facilities such as an on-site gym or cafeteria, can be an attractive perk for employees. If your business doesn't offer hybrid or remote work incentives, a great workforce strategy can make your office space as responsive to your employees' needs as possible.
Profitability-linked incentives.
Some organizations offer profit-sharing or performance-based incentives that tie employee rewards directly to a company's financial performance.
It is important to note that, as mentioned earlier in this article, the effectiveness of these incentives may vary depending on the specific needs and preferences of the workforce. Effective strategic workforce planning often involves a combination of these incentives, which are tailored to the organization's unique goals and the demographics of the workforce.
In addition, legal and regulatory factors may influence the design and implementation of these incentives.
Launching a workforce program requires equal business acumen, interpersonal skills, and alignment. Workforce planning also needs to be monitored, expanded, and updated. There is no one workforce strategy that can solve all of your business needs.
The ideal way to execute and lock in a strategic workforce planning process is to start with a strategy document that initially outlines your organization's approach to managing its employees (new or old) to achieve its short- and long-term business goals and employee goals.
It's a rigorous and structured, data-driven process for applying employee and business data. It helps align an organization's workforce with its strategic plan and ensures that they have the right people with the right skills. All while remaining agile and responsive to market changes and opportunities. Effective workforce planning can increase productivity, reduce turnover, and contribute to an organization's success.
For a U.S. organization like yours, there are some key ways to easily implement workforce planning.
Analyse. First, assess the current status of active employees. It includes data on the number of employees, skills, experience, demographics, and performance. It may also involve identifying gaps in skills or competencies.
*Demand. Once you've reviewed the status of your current employer, review employer and market trends to organize your future workforce needs. This includes estimating the number of employees needed to achieve the organization's future goals, taking into account factors such as growth, turnover, and changes in business strategy.
Acquisition strategy. When involved in the strategic workforce planning process, it's a good idea for your team to plan how the organization will attract and hire the talent it needs to meet your future needs. This may include recruitment strategies, such as internal promotions, external recruitment, and talent pipelines, that give your organization access to the right pool of employees.
Talent development. To ensure that employees have the skills and competencies they need to achieve their long-term goals, a workforce plan should detail a training and development plan. These can include leadership development, skills training, and upskilling programs.
Succession planning. Succession planning is critical for workforce planning, especially for key leadership positions. It involves identifying and nurturing potential successors to key roles within an organization.
Retention policies. To maintain a stable and skilled workforce, organizations often include employee retention strategies. These include employee engagement programs, competitive compensation, and career development opportunities.
Cost analysis. Workforce planning should consider the financial implications of workforce decisions. This includes estimating the labor, benefits, and return on investment (ROI) costs of the implemented workforce strategy.
Implementation timeline.
A timeline or roadmap is often included to outline when specific workforce strategies and actions will be implemented to align with the organization's goals.
Monitoring and evaluation.
An effective workforce strategy includes managing incentives for continuous monitoring and evaluation of program progress. What's more, these agencies evaluate and adjust workforce strategies as needed.
Contingency planning. Recognizing that unexpected events can impact the workforce, some plans include contingency measures in case of sudden changes in demand, economic downturns, or other unforeseen challenges. Effective strategic workforce planning can increase productivity, reduce turnover, and contribute to an organization's success.
Now that we've looked at the components of strategic workforce planning, we can dive into how the Employer of Record (EOR) can be leveraged to provide a significant strategic advantage to businesses operating in the U.S. that want to participate in the workforce strategy.
EOR ensures workplace strategy by complying with numerous federal, state, and local labor laws in the U.S. – which can be overwhelming for both domestic and international organizations.
By handing over employment responsibilities to an EOR, U.S. businesses can ensure that they are in full compliance with all applicable laws and regulations while implementing strategic workforce processes that minimize legal risks and liabilities.
EOR also enables businesses to rapidly expand their workforce and enter new markets without having to establish a legal entity in each location. All in all, the EOR can be a valuable partner in implementing a workforce strategy in the United States. Companies (possibly yours) can ensure compliance, reduce costs, increase flexibility, and focus on their core competencies by outsourcing employment-related tasks.