Workforce Planning and Development Toolkit for Small Businesses
This Workforce Planning and Development Toolkit is designed to help small business owners understand requirements, support planning and assist in addressing workforce needs to successfully start, run and grow their business and be an employer of choice in a competitive employment environment.
What is workforce planning?
It’s exactly what it sounds like. Workforce planning ensures ‘people strategy’ aligns with business needs to meet business goals. The goal is to have the right people with the right skills in the right roles at the right cost and at the right time – the ‘five Rs’.
Through workforce planning, you’ll also be able to pinpoint key workforce gaps, and risks specific to your business, and then develop strategies to find solutions.
Why do you need a workforce plan?
When running a small business, you often rely on the skills of a few specific staff. If any of these employees decide to resign or retire, it can leave a large knowledge gap. Workforce planning is also becoming increasingly important due to the need for flexibility amongst staff, and the need for operation cost reductions.
A large part of running a successful small business is staying one step ahead wherever possible – whether it be inventory, sales and promotions, or your workforce planning. A robust workforce plan will help your business respond more quickly to change, improve productivity, retain positive, motivated employees, and pre-empt risks and challenges.
Workforce planning is about being proactive; it’s safeguarding your employees, IP, and the business for the future – and it’s something you can start straight away.
What should a workforce plan look like?
Workforce plans will look different for every business. We’ve developed a template to get you started, but it’s important to adapt based on the unique needs of your business.
Knowing where to start workforce planning can be difficult, so we’ve separated the process into four phases. Each phase has specific focuses, but can and should be adjusted based on the nature and size of your business.
Phase One – Preparation
Phase One of workforce planning is about preparation. To set yourself up for success, you need to identify who should be involved in the activity. Your “workforce planning team” will be key to the success of the undertaking.
This should be based on the scope and scale of your business. If you have a small workforce, you’ll have a smaller workforce planning team – this is more than okay. This may simply include you as the business owner, and someone representing HR or finance to provide additional insights. If you have a slightly larger workforce, its good to include representatives from across the business, managers, supervisors as well as middle and junior employees. This variety will ensure a wide range of knowledge and viewpoints are incorporated. Regardless of the size, make sure you identify what everyone’s role is in the planning process, and how much time they can commit to the task.
Whether it’s just you as the business owner, or a larger team, those involved need to have a good understanding of each role in the business and the knowledge and skills required to do those roles. In most cases it is best to have a basic job description to articulate the role and what you are looking for.
It’s also important for your workforce plan to align with your business plan. These two plans should work together to meet your overarching business goals. Consider updating your business plan before you develop your workforce plan. Be clear about what you’re trying to achieve through your workforce plan. What information do you need to ensure there is a clear path for your business plan?
Use the Workforce Preparation Plan template to help you identify your workforce plan team.
After this phase, you should have:
- Updated your business plan, including key objectives.
- Identified your workforce plan team.
- Outlined clear goals for your workforce plan.
Phase Two – Auditing
The next phase of workforce planning involves collecting and analysing information about your employees and the business. We recommend conducting an audit of your current staff, even if it’s just you as the business owner. The goal is to understand how the five Rs are showing up in your business.
This phase is about sourcing information and identifying strengths, as well as gaps or areas for improvement. Asking the right questions is integral to collecting the data you need for effective workforce planning.
Use the Workforce Self-Assessment for suggested questions.
After this phase, you should have:
- Detailed data collected from your employees and other business sources e.g., pay slips or data from Xero/MYOB.
- An analysis of how your business and workforce operate.
Phase Three – Problems & Solutions
Now that you’ve sourced the data, it’s time to identify any problems and find the solutions. This phase is about doing the work now to pre-empt issues that could crop up in the future.
While running a business is unpredictable, there is work that can be done to set your company up for success. You need to determine your current workforce, what your business will need as a future workforce, and any gaps.
Use the Identifying Workforce Problems and Solutions template for suggested questions.
After this phase, you should have:
- Identified any major staffing or business problems, with solutions to mitigate.
- This could include recruitment strategies, upskilling opportunities, and cost efficiencies.
- Identified key milestones for your workforce and business objectives.
Phase Four – Action & Revision
Workforce planning should be an ongoing process – a continuous cycle of future focussed considerations and desire for improvement. To implement the initial steps, communicate with your workforce planning team (if you have one) and decide who is responsible for which areas.
Through the planning process, you should have developed an understanding of what the priorities are for risk mitigation in the business, so start there. It’s also a good idea to be open with your employees, should you have them, about the vision for the business and their part in it – sharing your aspirations and desires with your staff will give them a sense of drive and ambition, and ensure their motivations are aligned with yours. If you are a sole trader, this is still a helpful exercise. Write down your goals and vision for the business to keep yourself accountable.
As you embark on your workforce planning journey, remember to revisit the initial plan and the milestones you’ve set. It’s okay to adjust accordingly. It’s a fluid and agile process.
In Summary
Workforce planning is one of the most valuable tools for securing the future of your business and it doesn’t have to be complicated. By following these four phases - Preparation, Collecting & Analysing the Information, Identifying Problems & Solutions, and Action & Revision - you’ll create a roadmap to navigate workforce challenges, improve productivity, and align your team with your business goals.
Start small, adapt the process to your unique needs, and revisit your plan regularly to stay ahead.
Ready to begin? Download our templates and take the first step toward a stronger, more resilient workforce.