Toward an integrated workforce planning framework using structured equations

TL;DR

This paper proposes a structured equations-based framework for strategic workforce planning, addressing data integration challenges and providing quantitative methods for optimal hiring and workforce development.

Contribution

It introduces a novel quantitative framework using structured equations for strategic workforce planning, focusing on data integration and cost-effective workforce management.

Findings

A method for optimal hiring to maintain flat labor costs

A strategy to build experience-constrained workforce at minimal cost

First steps towards a robust quantitative planning framework

Abstract

Strategic Workforce Planning is a company process providing best in class, economically sound, workforce management policies and goals. Despite the abundance of literature on the subject, this is a notorious challenge in terms of implementation. Reasons span from the youth of the field itself to broader data integration concerns that arise from gathering information from financial, human resource and business excellence systems. This paper aims at setting the first stones to a simple yet robust quantitative framework for Strategic Workforce Planning exercises. First a method based on structured equations is detailed. It is then used to answer two main workforce related questions: how to optimally hire to keep labor costs flat? How to build an experience constrained workforce at a minimal cost?