10 best workforce planning tools for your business needs
Your employees are your most valuable asset. Whether you have 4 team members or 4,000, comprehensive employee management software—along with an effective workforce planning strategy—can help align your human resources with your business goals.
This article discusses the importance of effective workforce planning, highlights the top tools and technologies available, and gives advice on choosing the best software solution for your organization's unique needs.
What are workforce planning tools?
Workforce planning tools, also called staff planning tools, are solutions that help organizations manage their workforce by predicting staffing needs and aligning them with business goals. These tools analyze factors like employee headcount, projected business growth, skill gaps, turnover rates, and budget constraints to make better decisions about hiring, training, and resource allocation. Done well, effective workforce planning puts the right people on the right teams and projects to meet current and future business needs.
9-box grid
The 9-box grid is a tried-and-true workforce planning tool used to assess employee performance and potential. It’s a matrix that categorizes employees into nine groups based on their current performance levels and potential for growth within the company.
The 9-box grid helps HR professionals and managers identify high performers who may be suitable for promotions or leadership roles, as well as employees who may need additional training or development. By visualizing performance and potential, organizations can make more informed decisions about talent management and succession planning.
HR analytics
HR analytics is a data-driven approach to workforce planning. It helps organizations better manage their staff by analyzing data on recruitment, employee performance, retention, and more to identify patterns and forecast workforce needs. By using HR analytics software, companies can make decisions based on evidence, streamline their processes, and develop strategies that boost productivity, improve employee engagement, and reduce turnover.
Contingency planning
Contingency planning means preparing for the unexpected. Whether it’s an economic shift, sudden resignation, or a crisis that disrupts operations, staffing needs can shift quickly. You want to be prepared. By analyzing potential risks and developing strategies to mitigate workforce shortages, contingency planning ensures that businesses can adapt to changes with minimal disruption.
Compensation and benefits analytics
Compensation and benefits analytics help organizations evaluate how their pay structures and benefits offerings stack up to market standards and employee expectations. These tools analyze salary data, bonus structures, and benefit usage to create benefits packages that are both competitive and cost effective.
10 best workforce planning tools and software
Choosing the right tools can significantly impact your organization's ability to manage and plan its workforce effectively. Here are some of our top picks for workforce planning solutions:
1. Rippling
Rippling is a leading solution for workforce planning and human capital management. It offers tools to streamline headcount planning, automate administrative processes, and improve the employee experience. The platform integrates workforce forecasting, payroll management, and benefits administration, making it easy for HR teams to plan staffing based on current and future business needs. Rippling Headcount Planning allows businesses to model staffing scenarios and monitor employee roles, skills, and availability in real-time, facilitating well-informed decisions regarding hiring, promotions, and resource allocation.
2. Runn
Runn is a great option for workforce planning in project-based environments. It offers tools that allow teams to visualize resource allocation and capacity in real-time. It also helps organizations plan for upcoming projects by providing insights into employee availability and workload. By integrating with time-tracking tools, Runn ensures accurate forecasting of labor needs, allowing managers to allocate resources effectively and avoid project bottlenecks.
3. ClickUp
ClickUp allows teams to manage tasks, projects, and resources in a single platform. Managers can assign tasks based on employee skills and availability, simplifying resource allocation. ClickUp’s time tracking and reporting functions provide insights into employee productivity, allowing for more strategic workforce planning.
4. Workday Adaptive Planning
Workday Adaptive Planning gives organizations a comprehensive view of staffing needs in relation to financial forecasts and business objectives. Real-time analytics allow users to model various staffing and business scenarios to assess their impact on overall performance. By integrating with other Workday products, HR and finance teams can collaborate effectively on headcount planning.
5. Deel
Deel streamlines workforce planning by automating hiring, payroll, and local compliance worldwide. Deel can help organizations make informed staffing decisions by offering an HR platform that handles time off, expense reports, performance, and more.
6. Bamboo HR
BambooHR centralizes employee data, facilitating effective performance management and workforce analytics. It allows HR teams to track employee skills, performance reviews, and career development needs, which helps with career planning and finding gaps in the workforce.
7. Planday
Planday is a labor planning tool that works well for shift-based organizations, offering features like scheduling and attendance tracking. Managers can create and adjust employee schedules based on demand and availability, optimizing headcount allocation. Planday’s real-time updates ensure that employees are informed of schedule changes, improving attendance and operational efficiency.
8. Lightcast
Lightcast offers labor market analytics to guide organizations’ hiring and training strategies. It analyzes skill demand, wage trends, and talent availability, allowing companies to assess their workforce needs based on market conditions. This supports HR teams in making data-driven staffing and development decisions that align workforce capabilities with business goals.
9. Planful
Planful integrates financial planning with staffing. It offers budgeting and forecasting tools that factor in labor costs and headcount. By enabling organizations to model workforce scenarios and assess their financial effects, Planful aligns staffing strategies with financial goals, preparing businesses for future growth and challenges.
10. Paylocity
Paylocity combines HR and payroll functions with employee management features. With its strong reporting capabilities, Paylocity delivers insights into workforce trends and employee usage, empowering HR teams to make data-driven decisions about staffing and resource distribution.
How to choose the right workforce planning tools
To make the best choice for workforce planning software, HR managers and business owners should evaluate software based on several essential features:
Workforce forecasting and demand planning
A key feature to look for is workforce forecasting and demand planning, which enables organizations to predict future staffing needs based on current workforce trends, project timelines, and business growth projections. This functionality helps HR teams plan for hiring surges, seasonal fluctuations, or market changes, ensuring that they have the right people in place when needed.
Talent acquisition integration
Effective workforce planning tools should integrate seamlessly with talent acquisition systems. This allows businesses to align their hiring efforts with their workforce strategy, ensuring they recruit employees with the right skills at the right time. Integrated talent acquisition features can streamline the recruitment process by pulling data from job postings, applicant tracking systems (ATS), and performance reviews, making it easier to identify and fill skill gaps.
Data analytics and reporting
Data analytics and reporting capabilities are essential for workforce planning as they provide insights into workforce trends, such as employee performance, turnover rates, and labor costs. With real-time reporting, HR teams can make data-driven decisions about staffing needs, allowing organizations to identify patterns that may impact workforce strategy and adjust plans accordingly.
Budgeting and cost control
Workforce planning tools should include robust budgeting and cost control features, allowing businesses to forecast labor expenses and align them with overall financial goals. This feature enables companies to track workforce costs, including salaries, benefits, and training, ensuring they stay within budget while planning for future staffing needs. It also helps managers make informed decisions when balancing headcount with financial constraints.
Why use workforce planning tools & software
Workforce planning tools offer a range of benefits that help organizations manage their employees more effectively and meet long-term business goals.
Improved resource allocation
One of the most significant advantages of using workforce planning tools is improved resource allocation. These tools allow managers to analyze current and future workforce needs, ensuring the right people are working on the right projects at the right time. This leads to increased efficiency, reduced operational bottlenecks, and better team performance.
Enhanced employee productivity
Workforce planning tools provide insights into employee workload and performance, helping managers identify areas where productivity can be improved. By ensuring that employees are not overburdened and are working in roles that align with their skills, these tools help enhance overall productivity and job satisfaction. This leads to higher output and better employee engagement.
Reduced employee turnover
Workforce planning tools can also help reduce employee turnover by helping businesses gauge employee satisfaction, workload balance, and career development opportunities. By identifying potential issues before they lead to dissatisfaction, HR teams can take proactive steps to improve retention, such as offering additional training or modifying workloads. This leads to a more engaged and loyal workforce.
Effective workforce planning with Rippling
Workforce planning has a wide-reaching and impactful impact on your business. If you’re looking for a comprehensive solution that can scale with your growing workforce, look no further than Rippling. As an industry-leading solution for workforce planning and human capital management (HCM), Rippling is an easy choice for all of your workforce planning needs.
Rippling offers a comprehensive suite of tools designed to streamline headcount planning, automate administrative processes, and build customizable reports out of employee data. Rippling integrates workforce forecasting, payroll management, and benefits administration into one unified platform, making it easy for HR teams to plan staffing needs based on current and future business requirements.
Rippling Headcount Planning allows businesses to model various staffing scenarios and track employee roles, skills, and availability in real time. This ensures that HR teams can make informed decisions about hiring, promotions, and resource allocation. Rippling integrates your HR, IT, Payroll, and Spend systems, allowing for seamless management of employee data, reducing administrative burden, and improving operational efficiency.
Explore Rippling Headcount Planning and learn more about its human capital management capabilities.
Workforce planning tools FAQs
What techniques are used in workforce planning?
Workforce planning involves various techniques to forecast staffing needs and align them with business objectives. These include:
- Trend analysis: Examines historical workforce data to predict future needs
- Gap analysis: Identifies skill gaps in the current workforce
- Scenario planning: Models different workforce strategies to prepare for various potential business outcomes
How do you create a workforce plan?
To create a workforce plan, follow these steps:
- Assess current workforce: Analyze the skills, performance, and capabilities of your existing employees.
- Forecast future needs: Use business goals and market conditions to estimate future staffing requirements.
- Identify gaps: Compare current capabilities with future needs to identify skill or headcount gaps.
- Develop strategies: Formulate action plans to address gaps, such as recruiting new talent, upskilling existing employees, or reassigning resources.
- Monitor and adjust: Continuously track workforce performance and update the plan to reflect changing business conditions.
What is a workforce planning model?
A workforce planning model is a structured approach to estimating future workforce needs. It typically includes elements like supply models (which assess current workforce capabilities), demand models (which forecast future staffing needs based on business growth), and gap analysis models (which compare supply and demand to identify workforce shortages or surpluses). These models help HR teams make informed staffing decisions that align with long-term business goals.
What are the key principles of workforce planning?
The key principles of effective workforce planning include:
- Alignment with business strategy: Ensure that the workforce plan supports overall organizational objectives.
- Data-driven decision-making: Use analytics and forecasting to inform staffing strategies.
- Flexibility: Adapt the plan as business conditions evolve
- Proactive management: Anticipate future staffing needs and develop strategies in advance
Why is workforce planning important?
Workforce planning is important because it ensures that organizations have the right talent to meet business goals. Workforce planning helps:
- Align staffing with objectives: Forecast future needs and manage talent to support growth and adapt to changes.
- Optimize resources: Prevent overstaffing or understaffing, improving efficiency and reducing costs
- Mitigate risks: Anticipate talent shortages or skill gaps, allowing proactive solutions
- Boost retention: Supports employee development and engagement, reducing turnover
This blog is based on information available to Rippling as of October 15, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
