Manpower planning preparation is among the essential parts of HR management activities. Through the formula of manpower preparation, companies guarantee an appropriate labor force availability to sustain company operations.

As the most valuable possession in a company, HR should meet the expectations and requirements of the company. Otherwise, there is a high possibility that the company might stumble.

So, what is workforce planning and what are its methods? Find out the complete review in the following Mekari Talenta short article.

Manpower planning is a process of recognizing, preparing, approximating, and satisfying the labor force with the right quantity, time, location, and expense according to the company's requirements.

However, nowadays, the term manpower planning is not just about fulfilling labor force demand and supply.

But likewise about how companies can make sure that existing labor force can have the abilities required by the business and identify what innovation is required to enhance the skills of these staff members.

Marcus Lemonis, an American business owner, stated, "The consumer is number 2 for me right behind the staff member." It implies that business ought to constantly put their employees welfare initially above all else.

The tactical execution of manpower planning can have effects not just on HRD but on the general business too.

Here are some advantages that companies can acquire through good manpower preparation:

- Increasing business performance as the business can approximate the amount and kinds of workforce and innovation required.

• Enabling the company to have quality labor force in line with the business needs and goals.
• Detecting problems early in the management system, especially in the HR field, along with mitigation strategies.
• Creating effective workforce administration so that when there is worker turnover, the business does not have vacant positions triggering disturbances in the company.
• Facilitating HR supervisors to make strategic decisions in developing the labor force in regards to innovation, abilities, and employee satisfaction.
• Quoting Deloitte, manpower planning can cost-effectively handle labor costs. This is due to the fact that the company can spending plan the variety of workers and expenses properly.
• Creating customer fulfillment. With good workforce preparation, the business management automatically has excellent systems and standards, which affect customer complete satisfaction.
  
  Manpower Planning Objectives
  
  The main goal of carrying out workforce planning is to ensure the accessibility of labor force according to the company's needs. This preparation process is not an activity that is done once or twice. Instead, it is a continuous procedure as long as the company exists.
  
  Moreover, every 5-10 years, commercial technology always alters and develops, hence companies inevitably have to adjust.
  
  For instance, ten years back, cloud computing innovation or expert system (AI) were not widely known by industries. However, recently, these technologies have ended up being possessions for business to make it through in the digital age.
  
  Companies are required to meet these needs by having Human Resources or labor force capable of establishing and operating such technologies. Manpower preparation procedure is likewise required when a company sees brand-new service chances and wishes to implement them.
  
  Such projects require time, cost, manpower, and innovation. If done quickly, these chances can turn into threats causing losses.
  
  For example, HR in your business has recruited 5 staff members. However, the required technology is not offered yet, the job timeline is uncertain, and even the budget does not satisfy the project's expectations.
  
  Here is where workforce preparation plays its role in guaranteeing that these elements are met properly according to the business's requirements. Thus, the business chances can run as expected.
  
  To put it simply, another goal of workforce preparation is to ensure no mismatch amongst the labor force, time, place, innovation, and economy.
  
  According to The 2022 Global Talent Shortage by ManpowerGroup, the typical talent scarcity worldwide reached 75 percent in 2022.
  
  The sectors most impacted include government, education, healthcare, technology, production, finance, and retail.
  
  Meanwhile, according to the World Bank report in 2018, Indonesia needs at least 9 million IT employees in between 2015 and 2030.
  
  This is also supported by data from Korn Ferry in 2017, which forecasted Indonesia would face a competent labor deficit of as much as 3.8 million by 2030.
  
  If both of these scenarios happen in your company, business growth rate will be considerably slower. Companies will likewise struggle to complete and endure, particularly in the future.
  
  One technique to narrow the skill space or even boost the company's capability to fulfill its workforce requires is through manpower preparation.
  
  Best Practices in Manpower Planning Process
  
  As a guideline, there are 4 main actions in strategically developing workforce planning, as follows:
  
  Know the Company's Business Conditions and Plans
  
  Although workforce planning is a continuous process that runs continually, every year the business has company plans and evaluates the present and future conditions.
  
  HR managers, in this case, need to collaborate with all departments and service units. What are the strategic plans of each service system and what funds are needed?
  
  To be familiar with your business to align with workforce planning, at least consider the list below elements:
  
  - The present labor force, the number of organization systems there are, and the kinds of tasks presently offered
• The current work culture. Does it already satisfy expectations for the company, workers, and consumers?
• Business objective priorities both short-term and long-term
• The type of people and abilities needed by each business system
• Also, understand the development stage of your business, whether it's start-up, development, fully grown, or decline. This will determine the needed labor force capacity.
• Potential business threats both existing and future ones.
  
  Mapping the Company's Future Workforce Needs
  
  The next step is to map the future workforce requires or workforce forecasting. Through manpower forecasting, you can approximate the needed workforce and the capabilities needed by these staff members. Manpower forecasting itself has 2 techniques: internal and external.
  
  Internal analysis consists of:
  
  - Expert analysis involving all workers consisting of stakeholders from each department and C-level. This can be done through studies or informal discussions.
• Workload analysis by considering the existing work culture, functions, and the skills most required by each department or company system.
• Workforce analysis, which involves observing the number of recruits, annual turnover rates, presence records through online applications, and staff member efficiency.
• Other workforce-related analyses such as monetary and business analyses.
  
  While external analysis includes:
  
  - Analysis of the job market patterns and its impact on the company.
• Third-party analysis. Whether it's stakeholders who can provide external data or innovation suppliers who can support the company's workforce preparation process. For instance, making use of worker recruitment applications.
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  Develop Workforce Programs
  
  The next action is to establish labor force programs that include recruitment process models, Standard Operating Procedures, and labor force placement.
  
  Additionally, it needs to be kept in mind that in workforce preparation, the company not only concentrates on getting the needed labor force however also on how to maintain it.
  
  Compensation programs, working hours, lacks, ease of access, and other methods to make sure worker fulfillment with the company are vital aspects not to be ignored.
  
  Design Workforce Development Programs
  
  Finally, labor force advancement need to be implemented to satisfy the business's required ability demands. As mentioned earlier, workforce planning not only focuses on recruiting new skill however also on developing existing skill.
  
  According Huawei's Future of Work: 2022 Digital Talent Insight report, there are three primary programs that business can implement in labor force development programs:
  
  - Leadership: Building a workforce culture in the management phase so that the existing workforce has the same state of mind as the business's vision.
• Upskilling and reskilling: Developing existing employee skills or introducing brand-new abilities to staff members.
• New skilling: Providing new abilities to new graduates, for instance, through internship programs or external training.
  
  Examples of Manpower Planning
  
  Here are some research study cases that describe some cases on how workforce planning can be utilized.
  
  Manpower Planning on Recruitment Process
  
  Manpower planning typically utilized in the recruitment procedure considering that some services have reasons to employ more staff members. With effective workforce method, company can recognize its goal while determining the number of employees they need to finish some tasks.
  
  For instance, a producing company that produces steel items for building and construction jobs analyses its sales number and found that the number of consumers might increase two times within a year. The company understands that it does not have adequate workers to fulfill the production numbers for the increasing consumer. This forecast shows the needs of hiring additional workforce to satisfy production quotas.
  
  Then, they develop a strategy and identify the number of staff members needed to increase production number. The company finds out that they require 20% more labor force to run the plan and starts hiring new workers. Over 2 years, they can accomplish their goal to fulfill the need of production for their increasing customers.
  
  Manpower Planning on Leadership
  
  Leadership typically stands as a vital component within an organization's labor force. Effective management generally leads to enhanced performance, the execution of new policies, the growing of healthy work environments, and the facilitation of effective processes.
  
  Moreover, it is generally pivotal in fostering preparedness for change. As a service undergoes functional shifts, adept management can help the modification process. A workforce plan typically evaluates the existing leadership capacity within business, highlighting the potential need for management advancement.
  
  For instance, one business focusing on individual financing assessment, performs an analysis of its HR metrics and observes a consistent decrease in employee engagement. It prepares for that only 20% of its existing staff members may remain within the next three years.
  
  Recognizing the need for work environment improvement to bolster staff member relations and retention rates, it develops brand-new policies. However, it acknowledges the requirement for enhanced management to successfully implement these policies and attain their goals.
  
  Consequently, the company creates a workforce plan that includes training and development initiatives for its existing leadership. Through involvement in leadership development programs, both management and senior personnel refine their management proficiencies.
  
  Then, workers begin to put higher trust and respect in their management figures, thus fostering a more favorable work environment atmosphere. As a result of the enhancement in its management capabilities facilitated by enhanced workforce planning, it observes an increase in its projected retention rates.
  
  Manpower Planning Through HRIS
  
  One strategy in carrying out workforce planning is by relying on HRIS.
  
  Through HRIS innovation, you can make use of labor force information more easily and thoroughly. This data can then be utilized to figure out the future direction of the organization, specifically in HR.
  
  According to Gartner's report, only 12% of companies efficiently use workforce data, especially in assisting company decision-making.
  
  One supplier of HRIS in Indonesia is Mekari Talenta.
  
  Mekari Talenta is a software that has features covering numerous HR functions such as online attendance, payroll, efficiency management, employee self-service, staff member database management, and workforce planning.
  
  With Manpower Planning (MPP) function, business no longer needs to do manual information analysis, mapping, computation, and decision of employment strategies. The allotment of workforce requirements is more transparent to prevent unpredictability and to tone down recruitment costs.
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