Wyoming Workforce Planning
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Workforce Planning Model Phase II - Conduct Workforce Analysis

Analysis of workforce data is the key element in the workforce planning process. Workforce analysis frequently considers information such as occupations, skills and experience, retirement eligibility, diversity, turnover rates, and trend data. Questions agencies should consider include:

Are there certain occupational groups with increasing worker turnover?

Can factors influencing turnover be identified?

Has turnover reduced the skill set of a certain occupational group?

Answering these questions should help agencies develop plans for stable staffing levels, succession planning, and skill development.

There are four key steps to the workforce analysis phase of the planning model. These steps are illustrated below.

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Step 1: Supply Analysis

Supply analysis focuses on the specifics of an agency’s existing workforce and projects future workforce supply. This step involves (1) creating a current workforce profile, (2) reviewing trend data, and (3) projecting future workforce supply.

A profile of its existing workforce helps an agency understand where it is in terms of the right number of people with the right skills. Analysis of the current workforce can include:

• Number of employees and contracted workers

• Skill assessment of employees

• Salary and contract workforce expenditure data

• Workforce diversity (age, gender, and race)

• Retirement eligibility statistics

• Location

Of the items above, all but the skill assessment should be readily available to agencies through employee payroll records, employee files, and various human resources databases.

Next, agencies should look at trend data, which provides a picture of what occurred in the past. It can also help an agency predict the supply of skills that may be available in the future. Examples of trend data include:

Hiring patterns (time required to fill vacancies, average number of vacancies in a year, etc.).

Retirement patterns.

Employee turnover statistics.

It may be helpful to break down the trend analysis by agency divisions or by occupational groups. Looking at trend data will help an agency project future workforce supply. It will also help an agency apply assumptions about how the variables listed above will influence the future workforce. Trend information combined with the current workforce profile is an essential building block for forecasting workforce supply.

Step 2: Demand Analysis

Demand analysis identifies the workforce needed to carry out the mission of an organization. The focus of this step should be on the functions that an organization must perform and not just on the people. One reason this step is separated from the supply projections is to ensure that changes in functions are considered. These changes might have a significant impact on the size and kind of workforce that will be needed in the future. This step may provide one of the greatest benefits in workforce planning because it offers the chance for an agency to re-examine long-standing assumptions about the purpose and direction of its programs in light of changes that are taking place in the external environment. Results include a forecast of the numbers of employees needed in the future (for example, 1 to 5 years out) and the skills workers will need.

Two ways to determine future functional requirements are through environmental scanning and organizational analysis. Environmental scanning is the process of examining external trends to obtain a better understanding of what is happening in the environment in which the agency operates. There are several approaches to environmental scanning. The scan should include trends and issues in the economic, social, technological, legal, and political areas. It is important to track the legislative and appropriations processes to identify factors that may change the agency’s mission or program priorities. It is also important to track the changing composition of the workforce and shifting work patterns including demographics, diversity, outsourcing, and growing and vanishing occupations. An organizational analysis should include internal factors such as strategic objectives, business functions, and technology.

Once the "what" and "how" of future work are determined, the next step is to identify the skills employees need to carry out that work. The future workforce profile shows the number of workers and the set of worker skills needed for the agency’s future workforce. (See "Factors that Affect Workforce Needs").

Step 3: Gap Analysis

Gap analysis is the process of comparing the workforce supply projection to the workforce demand forecast. An analysis should consider the composition of the workforce, including demographic characteristics, geographic location, size, and employee skill level. The agency will eventually establish workforce strategies based on the results of this analysis. Analysis results will show one of the following:

A gap (when projected supply is less than forecasted demand), which indicates a future shortage of needed workers or skills.

A surplus (when projected supply is greater than forecasted demand), which indicates a future excess in some categories of workers and may require action. The surplus data may represent occupations or skills that will not be needed in the future or at least not needed to the same extent.

Step 4: Strategy Development

The final step in the workforce analysis phase involves the development of strategies to address future gaps and surpluses. Strategies include the programs, policies, and practices that assist agencies in recruiting, developing, and retaining the critical staff needed to achieve program goals. A wide range of strategies exists for attracting and/or developing staff with needed skills and dealing with workers or skills no longer needed in an organization.

Once an agency identifies a workforce gap, it needs to develop and implement effective strategies to fill the gap. Such strategies include outreach recruitment, contract worker attainment, staff training, and succession planning. Critical gaps should be analyzed with care to ensure that timely action is taken before these gaps become a problem for the organization.

Several factors influence which strategy or, more likely, which combination of strategies should be used. Some of these factors include, but are not limited to, the following:

• Time - Is there enough time to develop staff internally for anticipated vacancies or new skill needs, or is special, fast-paced recruitment the best approach?

• Resources - What resources (for example, technology, Web sites, structured templates, and sample plans) are currently available to provide assistance, or must resources be developed?

• Internal depth - Does existing staff demonstrate the potential or interest to develop new skills and assume new or modified positions, or is external recruitment needed?

• "In-demand" skills - What competition exists for future skills that are needed? Will the agency need to recruit for these skills or develop them internally?

• Job classification - Do presently used job classifications and position descriptions reflect future functional requirements and skills?

• Reorganization - Will some divisions need to be reorganized to meet business needs and strategic objectives?