Executive Summary:

Workforce planning is a critical element within a human resources strategy to ensure that an organization has the workforce to meet the challenges of today and to build for the challenges of tomorrow. Changing demographics and increased competition for qualified employees makes workforce planning critically important to the future of any organization. The development of a workforce plan requires an analysis of the companies positions; a review of present workforce competencies; an identification of skill requirements needed in the future; a comparison of present workforce needs to identify gaps and surpluses; strategic plans for building the workforce needed in the future; review and an evaluation process. It enables an organization to adjust and respond quickly to immediate and future changes to its business requirements. In its simplest terms, workforce planning is the process of ensuring the “right people are in the right place at the right time” to accomplish the mission and goals of the organization. The objective of this five (5) year workforce analysis is to determine the sample company's (ASC) present and future human capital needs, in order to achieve its strategic business goals set out below.

ASC in an Analyzer style company that has been in operation for approximately 50 years. This company currently operates three core sectors; manufacturing, technology and technology/manufacturing. The manufacturing sector (1), which has been producing a core product line for 25 years, is experiencing a steady decline in profits of 10% a year over the past 5 years. The technology sector (2), which has been in operation for approximately 3 years, utilizes leading edge technology resulting in healthy profits. It is the intention of this organization to phase out the manufacturing sector over the next 5 years; making the technology sector (2) the companies core product line. In order to meet the projected 5 year sales and revenues for this sector (2), its workforce will need to increase by 100% each year over the next 2 years. A combination of technology and manufacturing make up ASC's last sector (3), which represents the company's second core product line. Due to the advancements in technology, this sector is enjoying a regrowth stage which may be jeopardized by the lack of appropriate skills within its current employees. Below is a table outlining ASC's current workforce and the projected gap at the end of the planning period (5 years)

ASC Gap Analysis Comparison Table – 2014 Workforce Summary | Total Number of Employees in Scope | 275 | Departments | Sector 1 | Sector 2 | Sector 3 | Total Number of Employees | 70 | 40 | 45 | Total Number of Men | 50 | 20 | 30 | Median Age of Men | 55 | 25 | 50 | Total Number of Women | 20 | 20 | 15 | Median Age of Women | 45 | 25 | 45 | Number of Employees eligible to retire | 15 | 0 | 0 | Number of Employees estimated to retire | 2 | 0 | 0 | Historical Non-retirement annual turnover rate | 3% | 12% | 10% | Non-retirement projected turnover rate | 4% = 3 | 12% = 5 | 10% = 5 | Projected Recruitment & Transfers | 5 | 5 | 3 | Employee Available (supply) | 60 | 40 | 43 | Employee Needed (demand) | 70 | 40 | 45 | Current Employees (gap or surplus) | -10 | 0 | -2 | Anticipated Employees required in 5 years | 0 | 160 | 55 | Required Movement over next 5 Years | -60 | +120 | +12 |

Current Factors Impacting ASC:

Over the next several years the high percentage of baby boomers in the organization will usher in dramatic cultural change, whether in terms of an influx of younger, inexperienced workers with less attachment to the organization or with respect to strategies to retain older, more experienced workers. Organizations that initiate ways to help baby boomers continue working and making an income on their terms so they can enjoy more of their life will retain more of these premium workers. In relation, according to Canadian labour statistics we are entering into the tightest labour market since the 1950s. The pod from with to recruit new employees especially highly-skilled workers, is shrinking. A recent study by Human Resources and Social Development Canada suggests that the future rate of growth in demand for labour will outpace the growth in supply. Attracting talent from external sources to bring in much needed experience will be a challenge and hiring processes will need to be adjusted accordingly to create a greater pool of skilled human resources to draw from.

BC employers, both large and small, are suffering from a lack of available trained and experienced technology workers. Virtually every day our news media reports on the evidence and impacts of the current skill and labour shortages. The lack of a technical workforce limits the expansion of manufacturing in BC. This is a really big constraint on ASC's manufacturing and technology sectors growth because, although basic operating labour can be trained on the job, the next level up in technology requires employees to bring appropriate training and ideally experience to the job. At this time BCIT is the only institution in the lower mainland that offers training in computer controlled manufacturing and it only produces a few dozen graduate each year. Currently there are as many as 600,000 vacant manufacturing jobs in Canada because yesterday's workers do not have the skills to do today's jobs. If this remains the case, individual companies (as well as the overall BC economy) will be limited in their growth, or worse, unable to compete in the local, national and global marketplace.

Another important factor currently impacting ASC is the fact that for the first time in history, today’s workplace spans at least four generations. The Silent Generation is about 95% retired already, while Baby Boomers are delaying their retirement plans. Generation X is climbing the corporate ladder and Generation Y is just entering the workforce. This collision of generations, unless fully understood and properly managed, could create long-term turbulence in the workplace. Members of each generation bring distinct sets of values, attitudes and behaviours to the workplace. The four generations in the workforce today come to work with different expectations, assumptions, priorities, and approaches to work and communication. If these differences are ignored, they can grow into a source of misunderstanding and conflict. However, when appropriately managed, they create opportunities for collaboration and synergy among the different generations of workers, giving the organization a competitive edge. Organizations must familiarize themselves with the perspectives, needs and influencers of these key generations in order to be successful in a multigenerational workforce environment.

According to Forbes magazine, over the next decade, the number of women entering the workforce will increase at an unprecedented rate. In Canada, employment has grown more rapidly among women than men. Between 1976 and 2012, the employment rate for women rose from 41.9% to 57.9%, a 16.0 percentage point increase. On the other hand, the employment rate for men declined by 6.9 percentage points from 72.7% in 1976 to 65.8% in 2012. Just as important are the fact that the employment rates for mothers with children under the age of six have more than doubled since 1976, from 31.5% to 68.1% in 2007 and there has been a big increase in the workforce participation rate of older women. For women aged 55 to 59, the participation rate has jumped from just under one-half in the mid-1990s, to 62.3% in 2006. Almost half of women aged 60 to 65 are now still in the paid work force, up from just one-third a decade or so ago. In addition, half of women aged 25 to 44 now have a post secondary qualification, compared to 40% of men, and the education gap is even bigger among young people. Women currently outnumber men in knowledge-based occupations, with the number of women in the computer systems, scientific and professional, and executive groups nearly doubling between 1995 and 2006. Changes in how, when and where women are participating in today's workforce require organizations to adapt different staffing and management approaches with respect to the interpretation of work-life balance and the benefits offered.

Supply & Demand Analysis:

Sector 1 – Manufacturing:

This sector currently has 70 employees (50 men and 20 women) whose skill set is mainly low and/or limited. The median age for this sector is 50 with 15 current employees between 60-65 years of age and within range for retirement. This sector has a historically low non-retirement turnover rate of only 3%. Due to declining profits this sector is scheduled to be phased out of operation over the next 5 years requiring the elimination of its entire workforce by the end of the 5 year planning period.

In order to phase this sector out of operation in the proposed time frame, the total number of employees will need to be decreased by 20% a year for the next 5 years. Reduction of staff will come from a combination of natural retirements, early retirements, job shares, internal transfers and attrition. Strategies for this sector include controlling the increase of the non-retirement turnover rate, offering development opportunities that will allow movement from this sector to Sector 3, keeping the more experienced and knowledgeable employees, reducing the number of full-time positions and keeping enough employees invested and motivated to stay to end of phase out period in order to maintain required operations.

Below is a table showing the planned workforce movement of the Manufacturing Sector (1) over the 5 year planning period including:

* Reduction of total number of employees by 20% a year * Transfer of 2 employees to Sector 1 in 2014 & 2015 * 2 job shares created in 2014 & 2015 * Expected increase in non-retirement turnover rate to 25% by 2019 * Expected acceptance of a total of 18 early retirement packages by 2019

Sector 1 – Manufacturing | 5 year workforce plan | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Total Number of Employees | 70 | 61 | 51 | 44 | 35 | 16 | Number of employees eligible to retire | 15 | 13 | 10 | 7 | 4 | 0 | Number of employees estimated to retire | 2 | 3 | 3 | 3 | 4 | 0 | Number of employees taking early retirement | 0 | 0 | 0 | 2 | 6 | 10 | Historical non-retirement turnover rate | 3% | 4% | 4% | 8% | 10% | 25% | Projected non-retirement turnover rate | 3% = 2 | 4% = 2 | 8% = 4 | 10% = 4 | 25% = 9 | 30% = 5 | Projected number of external recruitment | 0 | 0 | 0 | 0 | 0 | 0 | Projected number of internal transfers to Sector 3 | 3 | 3 | 0 | 0 | 0 | 0 | Projected number of job shares | 2 | 2 | 0 | 0 | 0 | 0 | Number of employees available | 61 | 51 | 44 | 35 | 16 | 1 | Number of employee needed (going into next year) | 70 | 56 | 42 | 28 | 14 | 0 | Anticipated Employees (Gaps or Surpluses) | -9 | -5 | 2 | 7 | 2 | 1 |

Sector 2 – Technology:

This sector currently has 40 employees (20 men and 20 women) whose skill set is high and in demand. The median age for this sector is 25 and there are currently no employees within range for retirement. This sector has a relatively high historical turnover rate of 12% in comparison to sector 1 at only 3%. This sector is generating healthy profits and is expected to continue to grow over the next 5 years eventually replacing sector 1 as the organizations core product line.

In order to achieve the projected growth in sales and production, this sector needs to increase it workforce by 100% each year for the next 2 years. With the frequent advancements in technology it will be necessary for this sector to develop opportunities for its current employees to receive on going skills training. Recruitment efforts will need to be aggressive to ensure qualified and experienced candidates are obtained from a pool of limited resource; women entering the workforce and mature candidates with experience and knowledge will be targeted. Providing a workplace culture, programs and incentives to make the organization more attractive to current employees, women and mature applicants will be essential to reduce the historical non-retirement turnover rate of 12% to 8% during the planning period.

Below is a table showing the planned workforce movement of the Technology Sector (2) over the 5 year planning period including:

* Decrease in non-retirement turnover rate to 8% by 2016 * Hiring of 170 employees by 2019 * Internal transfers from Sector 3 of 2 per year starting in 2015

Sector 2 – Technology | 5 year workforce plan | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Total Number of Employees | 40 | 40 | 58 | 100 | 144 | 159 | Number of employees eligible to retire | 0 | 0 | 0 | 0 | 0 | 0 | Number of employees estimated to retire | 0 | 0 | 0 | 0 | 0 | 0 | Historical non-retirement turnover rate | 12% | 12% | 10% | 8% | 8% | 8% | Projected non-retirement turnover rate | 12% = 5 | 10% = 4 | 8% = 5 | 8% = 8 | 8% = 12 | 8% = 13 | Projected number of external recruitment | 5 | 20 | 45 | 50 | 25 | 25 | Projected number of internal transfers from Sector 3 | 0 | 2 | 2 | 2 | 2 | 2 | Number of employees available | 40 | 58 | 100 | 144 | 159 | 173 | Number of employee needed (going into next year) | 40 | 80 | 160 | 160 | 160 | 160 | Anticipated Employees (Gaps or Surpluses) | 0 | -22 | -60 | -16 | -1 | 13 |

Sector 3 – Technology/Manufacturing:

This sector currently has 45 employees (30 men and 15 women) whose skill set is moderately high. The median age for this sector is 47.5 and there are currently no employees within range for retirement. Historical turnover rates have been at an acceptable 10% per year. This sector has been experiencing a regrowth due to advancements in technology with respect to manufacturing processes. The organization is concerned that this sector's ability to maintain its current growth trend will be jeopardized by its workforce’s inability to meet the projected skill requirements.

With the phase out of Sector 1 during the planning period it is expected that this sector will require a small increase of employees by 2017 to facilitate the production that will be transferred here from Sector 1. Additionally, current and future employees will require on-going skills and knowledge development in order to support the continued advancements in technology projected for this sector. Employees will be recruited and developed internally to move into required vacancies within Sector 2. Like with Sector 2, recruitment efforts will be aimed at skilled workers (young and mature) and women. Programs and incentives will be developed to maintain the non-retirement turnover rate at 12%.

Below is a table showing the planned workforce movement of the Technology/Manufacturing Sector (3) over the 5 year planning period including:

* Maintaining non-retirement turnover rate at 12% * Train and develop 2 employees a year starting in 2015 for transfer to Sector 2 * Hire 10 new employees per year

Sector 3 – Technology/Manufacturing | 5 year workforce plan | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Total Number of Employees | 45 | 43 | 49 | 50 | 52 | 53 | Number of employees eligible to retire | 0 | 0 | 2 | 1 | 1 | 1 | Number of employees estimated to retire | 0 | 0 | 1 | 0 | 1 | 0 | Number of employees taking early retirement | 0 | 0 | 0 | 0 | 0 | 0 | Historical non-retirement turnover rate | 10% | 10% | 12% | 12% | 12% | 12% | Projected non-retirement turnover rate | 10% = 5 | 12% = 5 | 12% = 6 | 12% = 6 | 12% = 6 | 12% = 6 | Projected number of external recruitment | 0 | 10 | 10 | 10 | 10 | 10 | Projected number of internal transfers to Sector 2 | 0 | 2 | 2 | 2 | 2 | 2 | Projected number of internal transfers from Sector 3 | 3 | 3 | 0 | 0 | 0 | 0 | Number of employees available | 43 | 49 | 50 | 52 | 53 | 55 | Number of employee needed (going into next year) | 45 | 45 | 45 | 50 | 55 | 55 | Anticipated Employees (Gaps or Surpluses) | -2 | 4 | 5 | 2 | -2 | 0 |

The following matrix was designed to help determine what strategies will be needed to address the shortages and surpluses that have been identified through the gap analysis above.

Gap-Closing Strategy Questions | ASCGap-Analysis Shows: | Recruitment | Selection | EmployeeDevelopment | Succession Planning | Recognition | Retention | Employees do not have the right competencies | Are we recruiting the right employees? | Are we selecting the right candidates? | Are we offering the right development opportunities? Are we helping employees identify their developmental needs? | Are we looking for the skills now for future vacancies? | Are we making known our benefits and programs that would make us more attractive to prospective candidates? | Are we providing supportive programs and incentives to maintain existing employees? | High turnover is causing replacement of too many employees | Do people we recruit really understand their jobs? | Are we selecting the right employees? | Do employees feel they have the skills to do the job? Are they developed for the future? | Are the right candidates being identified and developed for the future vacancies? | Are we offering the right incentives? | Have we analyzed the cause of high turnover? | Large percentage of employees are eligible for retirement | Are we recruiting applicants for supervisor jobs who have the competencies we need? | Are we promoting employees with the critical supervisory skills or just those with the best “technical Skills”? | Do we offer appropriate training and development for supervisors to enhance their abilities? | What should we be doing to ensure our workers develop the competencies to step into supervisory roles? | Are we identifying senior employees who are an essential to operation? | Are we offering flexibility and benefits to encourage senior staff to work past retirement eligibility? | Difficulty attracting qualified applicants | Are our recruiting strategies effective? | Are we attracting the right candidates? | Do we have the reputation for not developing the people we hire? | Is our organization viewed as a long term career option? | Are we the kind of company people want to work for? | Are we the kind of company people want to work for? |

Strategies and Action:

ASC must be proactive in ensuring it has the right people at the right place at the right time to meet its organizational objectives. Historically proven, poor hiring choices have an adverse effect on an organization. From a capacity standpoint, employees who do not perform well in their roles within an organization need to be replaced more frequently, because they have been fired or have resigned from the position. Financially, it is more expensive to recruit, hire, and train multiple people for the same position due to turnover, than it is to maintain a single competent staff member over the long term. Organizations need to spend ample time defining the role and recruiting strong applicants in order to select the best candidates for each position. Additionally, employees who do not meet expectations are more dissatisfied and not as productive as employees who match job requirements, so it is a disservice to both the employee and the organization when the match isn’t right.

A skilled and knowledgeable workforce positively impacts organizational performance; therefore, as employees gain experience and knowledge, it seems reasonable that there will be a corresponding correlation to ASC's success. By providing ongoing professional development, an organization ensures it has the skills and capabilities needed and that all employees are making the best contribution possible. In addition to increasing employee competency and effectiveness, organizations that invest in the development of their employees enjoy a more motivated and committed workforce that is evidenced by increased retention, higher job satisfaction and morale, and greater productivity.
It is just as important to keep employees as it is to attract them in the first place. Although the strategies involved in keeping them are considered retention approaches, some may actually convince potential employees to choose an organization as their “employer of choice” because of a work environment that is productive, flexible, and meaningful. Dealing with a younger, highly educated and affluent generation of Canadians with a stronger sense of "what's in it for me", places a premium on values-based retention efforts. Employees need to feel valued and appreciated, be given feedback, provided with growth opportunities, be given work-life balance options, and have trust and confidence in their leaders. All of these retention strategies are beneficial when an employer wants to keep employees within an organization and keep costs of turnover low.

ASC will implement new initiatives for recruitment, selection in order to attract the volume of employees it will need during this planning period and to secure qualified and skilled workers. As well, ASC will introduce incentive programs and opportunities in order to keep employees happy and part of this organization instead of looking for employment opportunities elsewhere. Although the initiatives and strategies described below will benefit the organization as a whole, the Sector(s) they apply to (specific to the 5 year workforce plan) are identified.

Applies to: Sector 2 & 3 * Developing a variety of recruitment strategies with area universities, community colleges and IT schools designed to encourage students to participate in work experience programs in the manufacturing industry to gain exposure and familiarize themselves with the nature of manufacturing/technology work (i.e. high school vocational training, post-secondary co-op placements, internships, high school work experience placements, etc.) so they consider careers in these sectors. By collaborating with training institutions ASC can increase its future pool of young qualified and skilled candidates. Through these types of programs students gain hands-on knowledge and skills under the guidance of a practising professional. They forge strong connections with colleagues and gain greater understanding of their strengths in the field. Statistics show that many students are hired directly through their practicum experience.

Applies to: Sector 2 & 3 * Actively support school initiatives that increase young women’s interest in obtaining a technical education. Women are critical to addressing the skills gap in manufacturing. Women represent manufacturing’s largest pool of untapped talent. Collectively, women earn more than half of the associate’s, bachelor’s, and master’s degrees in Canada. In addition to bridging the skills gap, hiring and advancing women is smart business. As consumers and influencers, their experiences and insights could contribute significantly to the industry’s competitiveness. In a competition for skills, workplaces that are welcoming of women significantly increase the size of the talent pool they can draw upon. ASC will create a supportive workplace culture that attracts women characterized by flexibility and practices that support work-life balance. These practices can financially benefit ASC as research has shown that costs of such programs can be more than offset by significant savings in turnover costs. ASC will experience more productivity in the workplace because employees will be less stressed, healthier, and thus, more productive. In addition, being known as an ‘employer of choice’ will improve ASC's ability to attract and retain the most capable workers from the labour pool.

Applies to: Sector 1, 2 & 3 * Older workers are a talented segment of the workforce that has historically been underutilized. Hiring members from this labour pool is an easy and cost-effective way to bring always needed expertise and leadership into ASC. Organizations invest countless man hours and financial resources into the screening, hiring and training of new employees, only to find that many employees leave for “greener pastures” after a few months as they ascend through their career path. Rehiring experienced retirees can significantly reduce a company’s training costs. Older workers years of experience in the workplace give them a superior understanding of how jobs can be done more efficiently, which saves companies money. ASC currently has a large volume of employees in Sector 1who are soon eligible for retirement. Offering soon to retire employees opportunity to participate in a job share, whereby two individuals share the work of one job thus allowing them better work-life balance, would decrease the number of positions while retaining experienced and skilled workers.

Applies to: Sector 2 & 3 * One of the more traditional selection methods is to make choices based on knowledge, skills and abilities (KSAs). This selection method begins with job analysis. ASC will analyzes each job and create a job description that lists all required knowledge, skills and abilities needed to perform the job. Having clear job specifications will allow ASC to determine the best way to assess each candidate to determine whether he possesses those KSAs. As interviews are expensive, we should only target those applicants who thoroughly meet the specified criteria and warrant further assessment via an interview or by completing relevant tests. A well designed, job specific application form will help to streamline the process as it provides the desired information in an efficient format.

Applies to: Sector 1, 2 & 3 * Due to advancements in technology and other factors impacting the nature of some jobs, ACS will need to keep employees up-to-date and prepare them for roles of increasing skill requirements, responsibility and leadership through opportunities for ongoing acquisition or refinement of skills and knowledge. Although hiring individuals with the requisite skills is one option ACS will use for meeting the challenges of those changed jobs, it is not an option that will fulfill the organizations need to preserve the knowledge amassed by current employees. Developing an effective initial and on-going Employee Development Program is vital to the long-term success of this business. A properly developed EDP is instrumental in providing clear understanding of policies, job functions, goals and company philosophy which leads to increased motivation, morale and productivity for employees, and higher profits for the organization. Increasing the competency and effectiveness of employees is usually the driving factor behind an employee development program but these programs can also boost morale by positioning participants to advance their careers through acquiring new skills. According to Forbes Magazine, “capable ambitious young employees want training, mentoring and coaching. They want to gain skills. They want to become more versatile and valuable to an organization.” Applies to: Sector 1, 2 & 3 * On-the-job training is a traditional and effective method of encouraging professional development at work. Once an employee masters the tasks required in her role, ASC will offer opportunities to learn skills of complementary positions. Cross-training engages employees and shows them you value their work enough to give them other opportunities. Developing employees to perform a variety of roles also makes good business sense, because it helps avoid hiring temporary staff to cover absences due to vacation or sick days. By recruiting and cross-training employees who are interested in learning positions in other areas there will be a pool of internal candidates to fill vacancies in other Sectors.

Applies to: Sectors 1, 2 & 3 * ASC will create a scholarship fund and offer tuition reimbursement to those employees who take part in professional development outside of the organization. ASC will define the top five degree and certificate programs required to stay competitive and manage workforce gaps and then encourage employees to obtain them. By offering assistance in growing professional knowledge, skills and abilities in areas that are hindered by a limited labour pools, ASC provides solutions to its workforce shortages. An education program that is popular with employees effectively helps the organization retain the best and brightest. Studies show that promoting from within your organization’s ranks saves money, increases retention and helps build a more loyal and reliable workforce. As well, an organization that values education fosters a culture that strives to constantly improve itself and grow. Not to be overlooked is the power an effective tuition reimbursement program has in recruiting the best new employees. Financial assistance is a win-win-win: employees get the help and encouragement they need while ASC attracts the best people and rewards them for their desire to improve.

Applies to: Sector 2 & 3 * A succession plan ensures that there are qualified and motivated employees (or a means of recruiting them) who are able to take over when key people are advanced or leave an organization. It also demonstrates that that the organization is committed to and able to provide excellent products and services at all times, including during times of transition. Whenever size and resources permit, a succession plan should involve nurturing and developing employees from within an organization. Employees at ASC who are perceived to have the skills, knowledge, qualities, experience and the desire will be groomed to move up to fill specific, key positions. In order to be successful with succession planning ASC will assess their current and future needs based on the organization’s strategic plan, goals and objectives and match these to the capabilities of the existing workforce. Identified candidates will be internally developed to step into gaps that will arise. Without a succession planning process, ASC may not have a means of ensuring that positions that are crucial to its operation are sustained beyond the tenure of the individual currently in them.

Conclusion:

“Workforce planning is about having the right talent with the right skills, at the right time and cost, to support the organization's strategy. Workforce planning is a strategic response to changes in workforce demographics, business models and economic conditions – and in today's environment it's more important than ever.” The outlined 5 year workforce analysis and plan was aimed at providing ACS with the tools it needed to ensure its was able to attract, retain, redeploy, and develop the talent it needs in order to meet the forecast quantity and quality of employees in the future. It is important to mention that in order for this plan to be successful it must be reviewed and evaluated to ensure that the strategies initiated are achieving the results they were intended to.