Despite being two of the most important pillars and processes of business, workforce planning and recruitment resource planning don’t often get the attention and care they deserve. Many business leaders understand the importance of planning, but they don’t take the time to focus on it in the strategic way they need if they hope to grow.
When you look at it, human capital is quite literally capital. The people you hire for your organization impact every facet of your business, and without the right people in the right roles, achieving your growth and business goals becomes immensely more challenging. Below, we’ll touch on why companies need to place more emphasis on their recruitment planning and headcount strategies if they hope to succeed in the years ahead.David Windley, President of @IQTalent Partners discusses why organizations need to place more emphasis on the importance of a strong and comprehensive #HeadcountPlanning and #WorkforcePlanning strategy:Click to Tweet
Recruiting Isn’t Just A Line Item
Often CEOs and CFOs look at recruiting as if it is a cost center item that needs to be handled and managed within the HR department, rather than embracing it as the core business process that it is. Without recruiting and strong employees, an organization can’t hope to succeed or expand its business operations.
In the past, corporate leaders might have gotten away with this attitude, but in the midst of the “Great Resignation” and the candidate-driven market we’re currently experiencing, it is crucial that you align your business goals and people strategy. In September 2021, the quit rates, or the rate at which workers leave their positions, skyrocketed, hitting a record number of more than 4.4 million resignations. October was not much better, seeing more than 4.2 million employees leave their jobs and join in on the rising resignation trend.
How Headcount Planning Can Help
Having a headcount strategy in place can help organizations to offset the negative impacts of such high quit rates. The trouble, though, is that creating a headcount plan for this year has become increasingly more difficult with the added factors of significant employee attrition and challenging workforce availability.
One problem that companies are facing when trying to implement a headcount plan is getting executive buy-in. Talent leaders need to be able to convince their executive suite that recruiting is not just a one-off process, but is instead a core business function, just as the sales and manufacturing resource planning are.
Think about this — when a company builds out a sales team, it is common practice to work backward, starting with your revenue goals. The team works to establish the company’s revenue generation and then has to hire additional sales representatives based on those numbers. Much of the same strategy can be seen in the manufacturing sector. Planners need to establish their production goals and then work backward to determine the resources required to reach those goals.
Recruiting should be viewed in much the same way.
First, you should set the headcount goals for the upcoming year, and then you and your team can realistically calculate and determine the productivity per recruiting resource. Only once you’ve determined this value can you discern the recruiting resources needed to reach your business goals.
What’s difficult is that CEOs often are more hesitant to add positions or scale their recruiting functions, leaving their departments under-resourced and overworked. But, when it comes to the sales team, there is never much hesitancy to increase capacity and add positions. Recruiters and hiring managers need to be able to convey the importance of a supported and staffed recruitment department so that they can focus on finding and retaining the best talent.President of @IQTalent Partners, David Windley, says that #RecruitmentResourcePlanning and #HeadcountPlanning are core business functions and need to be treated as such. Read more in IQTalent Partners’ latest blog:Click to Tweet
How To Create A Headcount Plan
Creating a headcount plan and recruitment resource plan is a fairly straightforward process:
- Leaders need to determine the new roles they need in order to achieve this year’s business goals
- These numbers need to be adjusted for turnover and internal churn
- The adjusted numbers then generate the total number of positions that your recruiting team needs to fill
Typical challenges are that planners will often underestimate the attrition rate, and overlook the impact that internal churn has on their planning. This, as well as the open roles that are filled internally, can create additional positions that your recruiters need to be backfilled. All-in-all, a realistic recruitment demand plan needs to reflect the following:
When your team has an accurate visual for the total demand for recruiting and the recruiting productivity metrics you’re analyzing (such as how many roles a recruiter can manage per month), you can calculate the number of resources you need to achieve. The end result is something similar to the salesforce analogy.
It’s no secret that securing quality recruiting resources is a challenge in today’s environment. Strong, skilled recruiters are in high demand, and the best ones are hard to find. This means that talent leaders need to demand a seat at the workforce planning table, so they can more accurately convey the importance of seeing recruiting as a business function that drives outcomes, versus just a cost center. Hiring managers are no longer just “filling a job.” Today’s professional hiring roles demand real talent and a strong and specific set of skills. These positions call for expert human capital that can be tough to locate and harder to retain.
In times of tough competition, enlisting the help of an external recruitment and sourcing team can lessen the burden your internal team faces. IQTP is here to support your hiring goals and help you find the talent your company needs. To learn more about how our expert sourcers can help, or to start determining your own headcount plan, reach out to us today.