Learn the essential elements needed for an accurate supply analysis when conducting workforce planning. Employee movement data is crucial for identifying current staffing levels.
Table of Contents
Question
What is required for a supply analysis to be accurate?
Answer
Accounting for employee movement inside and outside of the organization. Supply analysis is used to identify the current number of employees in various positions and their competency levels. Having an accurate number requires knowing the movement of employees into, out of, and inside the organization.
Explanation
An accurate supply analysis, a key component of workforce planning, requires accounting for employee movement into, out of, and within the organization. A supply analysis aims to identify the current number of employees in various roles along with their competency levels. Without factoring in employee movement data, the analysis will fail to reflect the true current state of the workforce.
There are three main types of employee movement to track:
- Movement into the organization – new hires, rehires, acquisitions
- Movement out of the organization – voluntary turnover, involuntary turnover, retirements
- Internal movement – promotions, transfers, demotions
By gathering data on all these employee flows, HR can determine the net change in headcount and competencies over a given period. This shows the true supply of human capital to compare against projected workforce needs.
Additional data points to include for a robust supply analysis:
- Full-time vs part-time status
- Employee demographics (age, tenure, diversity dimensions)
- Performance ratings and potential
- Flight risk and succession candidate designation
In summary, an accurate supply analysis depends on accounting for the dynamic flow of talent into, out of and within a company. Capturing full employee lifecycle and talent management data provides HR the insights needed for effective workforce planning. Without this movement data, supply metrics will misrepresent actual current staffing levels and capabilities.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.