Conducting a Staffing Needs Assessment
Planning for the future staffing needs of an organization requires an analysis of many factors: prospects for future product sales, new product development, anticipated customer demand, competition (both global and local), changes in government regulations, economic conditions, and other factors discovered during the environmental scanning process. Management uses the results of these analyses to develop the organization’s strategic plan. From this overall organization plan, unit and functional strategies and goals and objectives are developed for individual business units or functional areas of the business. Reviewing these plans with line managers provides HR with the information needed to conduct a staffing needs assessment to ensure that individuals with the appropriate knowledge, skills, and abilities (KSAs) are available in the numbers they are needed by the organization and when the business needs them.
To determine how many people will be needed to do the work required to meet organization goals, you must first determine which KSAs are required. Once you have identified the KSAs, there are a variety of planning tools available to determine the numbers of jobs you will need to fill. Figure 1 illustrates a typical workforce planning model. The process begins with a review of the strategic plan, followed by a needs assessment that identifies two key pieces of information: the work that needs to be done and how many people are needed to do it. With that information available, it is possible to determine if there are individuals already in the organization who have the necessary skills to do the work. If there are not, HR can determine the most effective way to supply the organization with individuals who have the necessary skills at the time they are needed to accomplish the organization goals.
A staffing needs assessment determines the numbers and types of jobs needed to successfully achieve business goals and is the cornerstone of the workforce planning process. Two factors need to be assessed in this process: which KSAs are needed to achieve future goals and which KSAs are available within the organization to meet those goals. Comparing the answers to these questions identifies the gaps that will need to be filled and allows for analysis of the best way to fill those needs, whether internally or externally or by utilizing alternative staffing methods.
There are various job analysis methods utilized in identifying what needs to be done to accomplish the organization’s goals. Job analysis provides the data needed to identify the specific jobs for the workforce planning process. An effective analysis results in three essential planning tools:
- Job competencies
- Job descriptions
- Job specifications
Job competencies are broad statements of the factors needed to successfully accomplish the organization’s goals. These can be based on the characteristics for success in specific functional areas, leadership characteristics, or the ability to successfully interact across business units and functional areas. Core competencies describe the characteristics that are valued by an organization as unique to its vision, mission, and method of operating.
Job descriptions provide a list of specific tasks, duties, and responsibilities that must be accomplished to meet the organization’s goals. The description also includes information on reporting relationships, exemption status, and authority to act that defines where the job fits into the organization. This information is particularly critical in the hiring process to ensure that the job applicant fully understands what is required to perform successfully.
The job description must differentiate between essential and nonessential job functions. Essential job functions are those that comprise the competencies, duties, and responsibilities that are the reason for the job’s existence. Nonessential job functions are those that are not necessary to fulfill the organization’s needs for that specific position but which have been included in a particular job for a variety of reasons, including convenience for the organization.
- Essential Job Functions for a Marketing Coordinator
- The director of marketing needs to track the response rate for various marketing pieces and comes to HR for assistance in developing a description for this new position. There are several different types of collateral that need to be tracked: the direct mail collateral, brochures distributed at trade fairs, and the online information request page. The director wants to move some other duties into this position to reduce the burden on other members of the department who are currently working overtime to meet all the department needs. These other duties include running errands for the department, such as delivering copy to the print shop across town, picking up supplies needed to meet deadlines, and ensuring that the trade show booth is maintained in good condition. The reason the job exists is to track the response rate for the marketing collateral. If those duties were not required, the director would not be adding the position to the marketing team. These are the essential functions of the position. The other duties, running errands and maintaining the trade show booth, could be done by any position in the department, and are only being moved into this position for convenience. These are the nonessential job functions.
Job specifications are the KSAs necessary for successful performance of the essential job functions. To be legally compliant, specifications must:
- Be related to essential job functions
- Describe reasonable requirements for successful performance
- Contain physical requirements necessary to complete the job functions
There are a number of different tools available for use in the needs assessment process, and they fall into two basic categories: qualitative tools and quantitative tools. There are benefits and drawbacks to both types of analysis; reliance on a single method can result in forecasts that do not accurately predict future needs. Because forecasting is an inexact science, it is advisable to make use of several different tools during the workforce planning process to minimize errors.
Qualitative assessment tools are subjective evaluations of general observations and information and include various types of judgmental forecasts. These tools can be as simple as an estimate made by a knowledgeable executive or as involved as formalized brainstorming using a Delphi or nominal group technique.
The Delphi technique obtains input from a group of individuals who provide their expertise in succeeding rounds of questions about an issue or problem. After each round, the results are collated, prioritized, and returned to the participants in the form of additional questions for further analysis until a consensus is reached. An important factor of the Delphi technique is that the participants never meet, but provide their input in written form. There are several benefits to this technique, including the fact that it is a viable alternative when participants are geographically separated and that it encourages a wide variety of ideas that might otherwise not be considered.
The nominal group technique is a structured meeting format designed to elicit participation from all members of the group in order to arrive at the best possible solution to the problem at hand. The process requires a facilitator and begins with a period of time for individuals to think about and write down all their ideas about the issue. After that, each participant presents one idea, which is recorded by the facilitator for later discussion. When all of the ideas have been presented, the process of prioritizing and consensus building takes place, until a resolution has been agreed upon.
Quantitative assessment tools are objective measures of historical data that is analyzed using a variety of statistical measures. Several of these measures provide useful data for workforce planning:
Turnover analysis
The analysis of turnover provides key information to forecast the need for new employees to replace those who move out of their current positions. Turnover can be calculated for any period of time, but it is generally measured on a monthly or annual basis. The formula for determining the turnover rate is:
Times series forecasts
There are several time series forecasts that can be used to measure historic staffing levels and provide a basis from which expected future needs can be calculated:
Trend analyses
Trend analyses compare the changes in a single variable over time, and, over a period of years, generally move upward or downward. Trend analysis can reveal information on seasonal staffing requirements, which are periods of time within a one-year period that regularly vary from the general trend. Cycles, periods of time during which a pattern of performance (growing, peaking, declining, and plateauing at the lower level), also become apparent in a trend analysis.
Simple linear regression
Simple linear regression measures the relationship between one variable (for example, staffing) against another variable (such as production output) and allows prediction of one variable from the other. For example, measuring the number of units produced against the number of employees producing the units over a period of years would allow the analyst to forecast the number of employees needed to meet an increase in demand.
Multiple linear regression
Multiple linear regression measures the relationship between several variables to forecast another. An application of this model in workforce planning would be to determine if there is a relationship between lower staffing levels, absenteeism, and production output.
Simulation models
Simulation models allow several possible plans to be tested in abstract form. For example, an organization that wants to know the predicted results of different staffing alternatives can use a simulation model to determine which is the most cost effective.
Ratios
Ratios provide a benchmark based on the historic relationship of one variable to another. For example, the average HR staffing ratio has been 1:100 for a number of years. As the organization workforce increases or decreases, this ratio can provide an estimate of the number of staff required to provide services for the general employee population.
Choosing appropriate assessment tools provides the HR professional with a forecast of both the numbers and types of jobs that will be needed to accomplish organization goals. The next step is to determine where to find individuals with the appropriate knowledge, skills, and abilities to fill those jobs.
Which KSAs Are Available Internally?
Now that you have job descriptions and specifications that define exactly who you need to place in these positions, you can find out which, if any, of the KSAs are already available to you internally. There are a variety of tools you can use to determine this.
First, you can develop, implement, and utilize a skills inventory. This HR management tool collects and stores a wealth of information that would otherwise be obtained only after many hours of research by HR staff. An effective skills inventory will collect information on special skills or knowledge, performance appraisals, fluency in foreign languages, educational qualifications, previous experience in or outside of the company, credentials or licenses that may be required, and any continuing education the employee has obtained through training classes, seminars, or educational institutions. When made a part of an automated HRIS system, obtaining a report with detailed information about your internal talent pool can be accomplished in minutes.
You might also choose to develop, implement, and utilize a replacement chart. This tool is useful at all levels of the organization and helps HR and line managers identify staffing needs by categorizing current employees in one of four categories:
Ready for promotion
Employees in this category demonstrate the KSAs to assume additional responsibilities and are ready to move forward in the organization.
Develop for future promotion
This group of employees are proficient in their current positions, and, with additional training opportunities and experience, will be ready to move forward in the organization.
Satisfactory in current position
These employees are proficient in their current positions but do not demonstrate the KSAs or interest to assume greater responsibility in the organization.
Replace
Employees are placed in this category for a variety of reasons, such as transfer or promotion, impending retirement, short-term disability, or unsatisfactory performance.
Finally, you can develop, implement, and utilize a succession plan. A well thought-out succession plan identifies individuals within the organization who have the talent and ability to move into management and executive positions in one to five years. Once these individuals are identified, individual development plans are created to ensure that they are mentored and have opportunities to obtain education, training, and experience in areas that will enhance their ability to move into senior positions when the organization needs them.
Answering this question in the needs assessment enables HR to be proactive by providing alternatives to management in the way the need for people is met by the organization. By looking to the future, HR can analyze, evaluate, and recommend solutions that best meet the long-term needs of the organization. For example, planning staffing needs one to two years in the future allows time for training and development activities to prepare internal candidates to assume roles with greater responsibility. A longer view also allows time to build recruiting relationships with candidates possessing specialized skills to enhance the chances of hiring them when the organization needs them.
At this point, you know which KSAs will be needed for the future and have developed job competencies, descriptions, and specifications to assist you in filling those needs. You know how many people you need to meet the organization’s future needs and who is available internally to fill those needs, and you’ve identified the gap between the two. You are ready to determine the best way to meet those needs.