Often, a company’s most significant expenditure as indicated on its income statement is its workforce, warranting consistent vigilance from the business leaders. With the current scenario of a tight labor market, escalating inflation, and global economic ambiguity, the significance of workforce planning has amplified.
Workforce planning is the methodical process of aligning a business’s needs with the right personnel possessing the right skills, in appropriate roles, both presently and in the future. Implementing a thorough workforce planning approach allows businesses to be well-equipped for various scenarios, such as talent depletion owing to attrition or retirements, or labor scarcity, all of which can affect finances, product development schemes, and customer relationships.
However, workforce planning can pose challenges. It requires a comprehensive understanding of present staffing, experience, and salary benchmarks, along with the skills available in the job market, and the capability to accurately predict future organizational needs. To effectively realize this, businesses need to leverage HR and payroll systems for data on existing employees and their salaries. They need forecasting tools for data on predicted demand for new product lines or labor costs in unexplored territories, and access to financial and operational systems for the historical data needed to generate these forecasts.
Unfortunately, for most organizations, streamlined and successful workforce planning is an ongoing endeavor. They often grapple with cumbersome legacy systems, or have resigned to spreadsheet-based processes that fall short in coping with the rapidly evolving business and market conditions and are prone to errors. Dependence on spreadsheets and antiquated planning solutions may leave your business unprepared to adjust to its dynamic planning requirements, creating a workforce plan that’s discordant with finance and corporate plans.
NetSuite users have discovered the advantage of discarding spreadsheets and amalgamating HR and financial planning processes using a cohesive workforce planning solution. NetSuite Planning and Budgeting for Workforce Planning allows organizations to manage and forecast workforce costs effectively and offers crucial insights into the financial implications of strategic workforce plans. By closely aligning HR and finance, NetSuite Planning and Budgeting empowers companies to recruit the right skills and talent cost-effectively.
Streamline Workforce Planning and Forecasting with NetSuite
Finance and HR leaders need to transition from isolated, disjointed processes towards an integrated workforce planning solution that aligns workforce planning with corporate strategies, financial statements, departmental budgets, and forecasts. This shift aids HR teams in migrating from tactical headcount planning to strategic workforce planning that effectively and accurately positions the right personnel in the right roles.
NetSuite Planning and Budgeting features a dedicated workforce module that delivers timely data on workforce expenditures for your business. It simplifies the task of modeling future headcount and employee-related expenses with pre-built drivers, forms, and dashboards.
The comprehensive approach to workforce planning offers businesses several enhancements, such as:
- Advanced Workforce Planning: By integrating your financial and HR data from NetSuite SuitePeople or other Human Capital Management (HCM) source systems into NetSuite Planning and Budgeting, you can rapidly and automatically access data sources such as salary and benefits benchmarking data, which guide more precise workforce planning decisions like hiring, promotions, and headcount planning.
- Salary and Compensation Planning: The platform enables planning of salaries and total compensation, inclusive of bonuses, benefits, and other expenses for current and prospective employees. NetSuite users can utilize workforce assumptions preconfigured by administrators, such as pay schedule, annual rates for employee benefits, tax expenses, detailed benefits, and other workforce-related expenses that vary by work location.
- Accurate Employee Directory: The need to manually transfer employee data from your HR system into a spreadsheet or unrelated planning solution is eliminated, thereby saving time and preventing potential errors. NetSuite Planning and Budgeting enables automatic importing of your employee directory from SuitePeople or other HCM software to model workforce alterations like transfers and compensation changes. Review employee information by department, confirm salaries, modify employee statuses such as full-time or part-time, and update compensation assumptions such as overtime, bonuses, and merit increases.
- Bridging Workforce Deficiencies: Plan new hires directly in the tool by inputting hire date, job title, salary, department allocation, and other workforce-related specifics. View and manage employee status to identify active or former employees. The workforce planning module simplifies future organizational activity planning, such as an employee’s departure, leave of absence, or transfer between departments or subsidiaries. Planners can effortlessly configure demographics by headcount, gender, skill set, age, and education level to prepare for future activities and fill organizational voids.
- Enhanced Insights into Workforce Data: Utilize pre-built dashboards in the NetSuite Planning and Budgeting workforce planning module to see an overview of company expenses, departmental employee expenses, and department headcount. Examine your workforce data comprehensively or delve into specifics to better understand crucial information, such as a comparison of actual versus planned total headcount or compensation. Custom dashboards can also be created to visualize workforce data relevant to your company’s business processes.
By leveraging the workforce planning module in NetSuite Planning and Budgeting, planners get a holistic view of all employee data, synchronized with the company’s financial information. Automated calculations of existing compensation components free up their time to focus on ensuring the organization has the right people currently and in the future while preparing for growth.
In conclusion, navigating the complexities of workforce planning no longer needs to be a herculean task. NetSuite Planning and Budgeting offers an integrated, comprehensive solution that aligns your workforce planning with your financial strategies, empowering your organization to achieve optimal growth. By providing real-time access to critical data, simplifying future headcount and expense modeling, and offering an array of other essential features, this robust tool enhances your workforce management.
Holistic, well-strategized workforce planning not only aids in achieving immediate objectives but also in creating a blueprint for long-term organizational growth. And with the versatile capabilities of NetSuite’s solution, your company is well-equipped to tackle any workforce planning challenge that comes its way. Your organization is not just preparing for the future; it is shaping it.
In the ever-evolving business landscape, staying ahead requires adaptive tools and proactive strategies. With NetSuite Planning and Budgeting, you can enhance your workforce planning process, ensuring that you are not just reacting to change, but actively driving it. As you continue your journey, remember that the right tool can make all the difference. Harness the power of NetSuite Planning and Budgeting and let it guide you towards a more efficient, productive, and successful future.
So take the leap, transition from traditional workforce planning methods, and experience the transformative power of NetSuite Planning and Budgeting. The future of your workforce management awaits.