Demand Planning

The Demand Planning step is the stage in the workforce planning process where you start thinking about your future organization

For each of the role clusters you identified in your baseline, you can plan future demand using different planning methods

Components of demand planning

Initial demand is generated by the snapshot taken during the Build Baseline stage of workforce planning

This initial demand can be adjusted be use of the Override Demand

Future demand for each role cluster is then calculated by one of the 3 planning methods

FTE are then added or removed based on input from Project Based Demand, giving the total Demand value

Demand can be partially fulfilled firstly using an external workforce initiative (outsourcing or contingent workers)

The gap is then the remaining demand that needs to be fulfilled by the employees of the organization

Select Planning Methods

Demand planning can apply one of three planning methods to calculate future demand for a role cluster

• Manual Entry: This method allows the calculation for future demand based on manually entered FTE values for each planning interval
• Percentage Growth: This method allows the calculation for future demand based on assigning a growth percentage for each planning interval
• Volume Driver: This method allows the calculation for future demand to be linked to a volume driver e.g. sales or production forecasts

1. Each role cluster is listed
2. Select the planning method to be used
3. The Review tab will show the planned demand once demand assumptions have been entered for each role cluster

Enter Assumptions

Once planning methods have been selected for the role clusters, values should then be entered for each of the methods

Select open for the required planning method to enter the forecast of your workforce demand

Manual Entry

The manual entry screen contains:

1. Dimensions selected during the Build Baseline stage will be shown slicing the data with columns able to be sorted and filtered
2. The intervals selected during the Create a plan will be displayed in the header
3. The initial FTE value for each role cluster is shown
4. The forecast FTE for each role cluster and planning interval should be entered
5. The Toolbox options may be used to copy and paste table values
6. Select Save to retain entered values

Percentage Growth

The percentage growth screen contains:

1. Dimensions selected during the Build Baseline stage will be shown slicing the data with columns able to be sorted and filtered
2. The initial FTE value for each role cluster is shown
3. The forecast % growth assumption for each role cluster should be entered and this will be applied to every interval in plan to calculate its future demand
4. The Toolbox options may be used to copy and paste table values
5. Select Save to retain entered values

Volume Driver

Volume drivers help assess workforce requirements by analyzing factors such as customer inquiries, production orders, or service requests. For instance, in a call center, the number of incoming calls directly impacts the necessary customer service personnel. Calculating workforce demand using volume drivers involves considering two key components:

1. The volume of work to be handled (e.g., 500 widgets).
2. The productivity of the individuals performing the work (e.g., 50 widgets per full-time equivalent employee or FTE).

So that:

Demand = Volume / Productivity = 500 widgets / 50 widgets per FTE = 10 FTEs

• If Volume grows and Productivity remains equal, the demand for workforce grows.
• If Productivity grows and Volume remains equal, the demand for workforce decreases.
• If Volume and Productivity grow, the demand change will depend on which factor grows at a larger rate

The volume driver screen contains three tabs:

1. Manage Drivers
2. Link to workforce segments
3. Manage Productivity Initiatives

The Manage Drivers tab should be completed before the Link to workforce segments tab while the Manage Productivity Initiatives tab is an optional stage

Manage Drivers

The drivers tab allows you to create and enter values for multiple drivers such as sales or production to which future demand will be mapped

1. Each driver should be given a name to identify when mapping
2. Values for the driver should be entered for each interval of the plan. The increase in values will be used to forecast future demand (e.g. if a driver value increases by 10% from previous interval this will generate a workforce forecast demand of 10%)
3. Multiple drivers may be added using the + Create new driver button
4. New drivers will be added as untitled which should be edited as required
5. The Toolbox options may be used to copy and paste table values
6. Select Save to retain entered values

Link to workforce segments

This tab enables the selection of a driver for each role cluster

Here you can link volume drivers to workforce segments, view the initial productivity, and assess whether there's an ongoing initiative influencing productivity over time.

1. Dimensions selected during the Build Baseline stage will be shown slicing the data with columns able to be sorted and filtered
2. The initial FTE value for each role cluster is shown
3. Select the required driver from the dropdown list
4. Initial Driver Value is displayed
5. Initial productivity will be calculated using the formula initial productivity = initial driver value / initial FTE demand
6. Select Save to retain values

Manage productivity initiatives

This tab enables the creation and entry of productivity initiatives

You can then explore the influence of these changes in employee productivity, including transformation initiatives, process change, and digitalization efforts, on future workforce demand

Initially no changes to productivity will exist in your plan therefore any changes in demand will assume that the initial productivity calculated on the Link to workforce segments will remain constant and used to calculate required FTE

To create a Productivity Initiative:

1. Select the + Create a new productivity change initiative
2. This will open the Productivity Initiative screen
3. Enter a name for the initiative
4. Enter and optional description for the initiative
5. Select how you want to define productivity changes
   • Manual entry - Number of driver units per FTE.
     Example: Starting with an initial productivity of 100 units per FTE, your productivity will rise to 110 units next period.
   • Percentage input - % of productivity change compared to previous month
     Example: Starting with 100 incoming calls per customer service agent, your productivity will rise by 10% per agent over the next period.
6. Select Create productivity change initiative

The current release of Workforce planning only supports a single productivity initiative

Once the blank initiative has been created the productivity values should be entered by:

1. Selecting the initiative
2. This will open the Productivity initiative input table screen
3. Values should be entered into the table. In this percentage example improvements in productivity are entered as positive values
4. Reductions in productivity % are entered as negative values
5. 0.0% may also be entered for planning periods where no productivity % change occurs
6. The Toolbox options may be used to copy and paste table values
7. Select Save to save the input values

Project Based Demand

Additional demand from strategic projects can be added or deducted to the demand already calculated via one of the three Planning Methods

This enables short term project demand to be added to the base demand

Select Project-based demand from the Demand Planning screen

To open the Project based demand screen containing:

1. Any existing projects
2. Button to + Create new project

Create New Project

To create a new project, select the + Create new project

1. Enter Project name
2. Enter an optional description for project
3. Select Create Project

Once created, select the project to open the screen to enter demand

Demand is entered as additional FTE to the base demand

1. Enter any additional initial FTE
2. Enter any additional demand by planning period
3. Demand may also be entered as a negative value to reduce base demand if required
4. The Toolbox options may be used to copy and paste table values

External Workforce Initiatives

The use of the External Workforce Initiatives enables you to explore the impact of an External workforce (I.e., services outsourcing/insourcing, contingent workforce) on your future workforce capacity needs

Enter the workforce demand that will be impacted by the use of external workforce initiatives

To add an initiative select the External workforce initiatives button from the Demand planning screen

This will open the External workforce screen

1. Select + Create a new initiative
2. Enter a name for the initiative
3. Enter an optional description of the initiative to help other users
4. Select the input method FTE or Percentage
5. Select Create Initiative

Once the initiative has been created, the workforce FTE or percentage by planning period should then be entered

Any value entered as an external workforce initiative will be deducted from the overall demand leaving the remaining demand to be filled by internal supply

To enter external workforce values :

1. Selecting the newly created initiative button to open the input screen
2. Initial demand will be calculated from baseline and will not be editable
3. Initial External Workforce will be calculated from baseline and non editable if an External Workforce Property has been mapped otherwise it may be entered where required
4. Enter values for other planning periods in plan
5. The Toolbox options may be used to copy and paste table values
6. Select Save

Review Demand

Once planning methods and driver values have been entered for role clusters, along with any project based demand and external initiatives, it is then possible to simulate the forecast demand based on these assumptions

1. Select the Review tab
2. Select the Simulate button
3. A message will be displayed while the simulation is running

Once completed the Demand Planning Review screen will be shown containing:

1. A line graph showing the demand FTE by planning period
2. If an external workforce initiative has been added, a second line will be shown on the graph showing the internal demand FTE along with an external workforce line graph showing the external workforce FTE by planning period.
3. Dimensions selected during the Build Baseline stage will be shown slicing the data with columns able to be sorted and filtered
4. The planning method selected for each role cluster will be indicated by an icon
5. The initial FTE value for each role cluster is shown
6. The assumptions entered on the planning screen will be applied to the initial FTE and displayed as forecast FTE by planning interval
7. The Toolbox options may be used to copy and paste table values

If any amendments are required you can return to the Demand Planning screen and re Enter Assumptions to update the demand or even change the selected Planning Methods and enter new values and then repeat the Review Demand stage until you are happy with the forecast demand

Once complete you can use the Navigation Crumbtrail to navigate back to the Plan Stages screen and select Position Planning if you want to align your strategic demand to your detailed operational position plan; or select Supply Forecasting to continue building towards your gap analysis