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Workforce Planning Strategy

A firm’s strategy affects its workforce planning in several ways. First, it affects how quickly the company is likely to need to respond to labor shortages or surpluses. Second, it affects how critical different skill sets are in the organization, which, in turn, determines the workforce planning tactics managers are likely to use. Workforce planning is a continual process used to align the needs and priorities of the organization with those of its workforce to ensure it can meet its objectives. The greater potential strategic impact certain positions in a firm have, the more reluctant a company will be to outsource, offshore, or turn to contingent workers to fill them. Instead, the firm will tend to hire and retain permanent employees for these positions to keep them staffed.