The 4-Step Framework to Build a Future-Ready Workforce

From navigating inflation to integrating AI, today’s business landscape demands strategic foresight. Organizations are grappling with evolving workforce needs, rising talent pressures, and accelerating technological change, according to the 2023-24 SHRM State of the Workplace Report. With rough seas ahead, workforce planning is no longer optional — it’s essential.

Sixty-one percent of board directors rate workforce planning as a “very” or “extremely” important talent issue, according to a 2023 survey by Fast Company. As a result, HR leaders — including CHROs — are under increasing pressure to meet stakeholder expectations while building strategies that align talent with long-term business needs. 

But what does effective planning actually entail? 

HR leaders can follow a four-step analytical process — outlined in The Case for Long-Term Workforce Planning in Competitive Markets eBook — to guide their strategy. 

SHRM Members-Only Toolkit: Practicing the Discipline of Workforce Planning

1. Supply Analysis: Current Talent

To begin the planning process, ask yourself and your team the following questions to assess the current state of your workforce:

• How many employees do we currently have, and in which roles?
• What stages of their careers are they in — early, mid, or late?
• What skills and capabilities does our current workforce bring to the table?
• Where are our strengths — and where are the gaps?
• Does this snapshot of talent align with where our organization is headed?

Understanding this makeup of the organization sets a base line for planning and helps direct resources to areas that need it most. 

2. Demand Analysis: Needs for Now — and Later

Once the current talent supply is understood, leaders should engage key stakeholders across the organization to gather insight. This input — combined with a review of the business strategy and industry trends — helps clarify how skill needs are likely to evolve.

3. Gap Analysis: Missing Pieces

With the findings from supply and demand evaluations, leaders can identify the missing pieces — people, roles, and skills — in the workforce. Considering where the company will be in five years, is the current workforce adequate, or will new skills and roles be required? 

4. Solution Analysis: A Pathway Forward

After identifying and understanding the gap, leaders can then explore solutions to ensure their workforce is ready for the future.  It’s important to understand that, in most cases, there won’t be just one solution. Instead, a combination of training, recruiting, targeted retention efforts, and other initiatives will be required to bridge the gap. 

The Workforce of the Future

The future favors the prepared. Effective workforce planning provides a buffer against economic, demographic, and technological uncertainty. Organizations that invest in thoughtful, ongoing workforce planning are better equipped to adapt, compete, and lead — even in the face of disruption. By turning insights into action and revisiting plans regularly, leaders can build a workforce that’s not only ready for what’s next but also designed to shape it.