Today, I am more than happy to share with you the latest and greatest about our updated second version of this SAP Best Practices. As for all SAP Best Practices, you find the published assets such as process details, guides, test scripts and package presentation on the Best Practices Explorer. And since this is built with SAP Analytics Cloud, you can easily deploy the pre-built content package as part of the Business Content for SAP Analytics Cloud.
Now, let’s quickly cover the new scope of this SAP Best Practices in the strategic as well as the operational planning area. The greatly enhanced Strategic Workforce Planning scope item has been designed for business strategists in the Human Resources line of business and ensures the contribution of the HR strategy to the business’s success and strategic objectives. It is a planning solution that helps to predict the future development of workforce demand, supply and gap and define risk responses to close the gap. The new Operational Headcount Planning scope item has been designed for HR Business Partners and Managers as a planning solution that supports the yearly planning of headcount or full-time equivalents (on job classification level) for hires, terminations and transfers and their salaries and merit increases.
We will now explore these two scope items in a bit more detail.
Strategic Workforce Planning
Strategic Workforce Planning is the process of determining future workforce demand and supply, identifying the gap between supply and demand and defining risk responses to close workforce gaps.
The planning process starts with creating the demand plan based on strategic output targets, such as revenue for specific strategic planning scenarios. Then the supply plan is created, taking into account planned hires, terminations and retirements. These two plans result in the gap plan indicating shortages and surplus per planning dimension, such as organizational unit, location, and job classification. After identifying demand, supply and gap risks, planners define risk responses as part of the HR interventions strategy to close predicted workforce gaps.
Some of the key enhancements in this new version are e.g. the availability of hires and hire rates in the supply plan or the new risk management component for risk identification and risk response planning through HR strategies such as hiring, contracting, transferring or retaining.
The solution is designed with planning administrator and planner roles in mind with role-specific launchpads. Here what the planner launchpad looks like including live data tiles:
Comprehensive pre-built analytics stories support the strategic planning activities:
Operational Headcount Planning
Operational Headcount Planning is the process of planning the headcount or full-time equivalents for a twelve months planning horizon.
The planning is performed on a job classification level per organizational unit and allows for planning of hires, terminations and transfers-in and transfers-out. In a second step the salary and merit increase per job classification is planned. New positions (i.e. job classifications) together with annual salary can be created in specific locations for planning of new headcount and full-time equivalents.
As well in Operational Headcount Planning, the solution is designed with planning administrator and planner roles in mind with role-specific launchpads:
Three types of comprehensive pre-built analytics stories support the planning activities. Firstly, the analysis of the Plan with e.g. net change and salary-related charts. Secondly, Actual & Plan analysis presenting key measures including break-downs by period. Thirdly, Actual vs. Plan analysis providing e.g. the calculation of variances.