Workforce analysis is the process of analyzing your employees and their capabilities to understand current abilities, future needs, and existing gaps. While the immediate benefits of an improved hiring process might be enough to convince you to use analysis as part of your HR process, there are plenty of ways regular workforce analysis benefits you in the long-term.
Good analysis will help you to identify the quantity and quality of employees you need for each task, identify knowledge, skills, and experience that are needed, missing, or soon to be needed. It will allow you to identify changing trends and skills so that you can begin to adapt your existing workforce, and will help you to remain prepared as your workforce changes.
Benefits of regular workforce analysis
Here’s how periodic analysis helps you and reduces business headaches along the way:
Workforce analysis allows you to identify gaps and changing skills needs, making it possible for you to offer on-the-job training to high-performing employees so that they have the opportunity to move up in the company, and you have the opportunity to retain employees with valuable behaviors.
Good analysis will also help you to identify which employees are crucial and difficult or costly to replace, so that you can work to retain those employees, or work to train replacements internally.
Reduced Skills Gaps
Technology evolves at a rapid pace and many employees have skills which are obsolete. Some roles are staffed by someone who no longer fills many of the obligations they were originally hired for, because those obligations no longer exist, while others are short-handed and lack valuable skills. A workforce analysis can help you to begin restructuring to fill gaps, reduce inefficient labor, and ensure that all roles have are held by employees with the technical and behavioral skill to make the most of them.
Preparing for Change
Most industries are in a constant state of change and you may find that teams, departments, output, and technology change every few years. Workforce analysis can help you to recognize where change will happen so that you can begin preparing employees and company structure in advance. This will help you to avoid delays and disruptions when change does happen.
Preventing Unexpected Shortages
If you know when employees are likely to leave or want to move up, you can prepare for it by either having a new employee ready to fill their shoes or offering incentive to remain with the company. For example, by checking when employees typically retire, comparing average length of employment in specific positions, and checking employee satisfaction, you can easily calculate when you are likely to have employment gaps and prepare for it.
Good workforce analysis will help you stay on top of every aspect of your workforce planning and management, from hiring to offering continuing education and advancement opportunities for existing employees. It will also allow you to address issues before they become problems, take steps to ensure that employees are happy and willing to stay, and allows you to adapt your workforce to meet new technologies before they arrive.
This will help you to reduce problems, give you more control over workforce changes, and can be a competitive advantage.