Today, organizations operate in an environment defined by rising complexity and accelerated change. External forces such as geopolitical tensions, volatile markets, and supply chain disruptions are creating a climate of structural economic uncertainty. This uncertainty directly impacts the bottom line: costs become more volatile, financial buffers shrink, and the pressure to drive efficiency increases. Viewed through the lens of Chief Human Resource Officers (CHROs), the challenge is no longer merely to spend less but every people-related initiative must deliver measurable value, while directly supporting the organization’s strategic priorities. Under these conditions, even critical roles are evaluated for cost and impact, making the deployment of the right people in the right roles essential to delivering business value.
At the same time, the talent market is undergoing its own transformation. Digitalization, AI, and automation are redefining the skills organizations need, while demographic shifts, such as ageing populations and persistent labor shortages, are reducing the available talent pool. Skills are becoming redundant faster than ever, shortening the half-life of expertise, and intensifying the competition for scarce talent. The result is a growing mismatch between the skills organizations require and those that are available in the labor market. In this context, reactive hiring and ad-hoc workforce decisions become increasingly ineffective and costly.
To remain competitive, organizations must adopt a proactive, forward-looking people strategy that aligns future needs with a sustainable and economically sound talent approach.
Proactive people planning: a strategic imperative
For Boards and CHROs, this convergence of pressures elevates one central question: How can the organization meet its talent and capacity needs in a way that is sustainable, cost-efficient, and future-proof?
The answer lies in a proactive, forward-looking people strategy. This is where Strategic Workforce Planning (SWP) comes in: it provides the foundation for a sustainable and future-proof talent strategy, by enabling organizations to anticipate future talent needs, identify potential skill gaps, and design sustainable strategies to build, buy, borrow, or automate capabilities. By anticipating how internal and external dynamics influence both future workload demand and workforce supply, SWP bridges the gap between strategy and execution and ensures that workforce decisions are intentional, future-focused, and financially aligned. In essence, it enables organizations to have the right people, in the right place, at the right time, in the right size.
There are many triggers for SWP questions, such as:
- How might we invest capabilities across our value chain to drive growth?
- What skills, and how many staff, do we need to achieve our organizational strategy?
- How can I use my employees’ flexibly to remain agile in this ever-changing market?
- What are the opportunities for automation, and what impact will that have on the workforce?
By addressing these questions, SWP allows HR leaders and Boards to anticipate change, close skill gaps, and turn potential workforce risks into strategic opportunities.
Key areas of focus for board members and CHROs |
Key reflections |
Strategic workforce planning |
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Future-proof HR model
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Reskilling and upskilling |
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Technology and workforce data |
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Maximize the value of your strategic workforce planning by future-proofing your HR model
Board involvement is crucial to a successful strategic workforce plan, not only ensuring the link with the overall business strategy, but also in helping to take decisions, e.g., on containing labor costs while avoiding skill shortages, aligning strategic initiatives with talent needs and capacity, and shaping the long-term talent strategy.
A strategic workforce plan does more than anticipate future talent needs; it creates an opportunity to optimize the current workforce. To realize this potential, the HR model must be aligned with it and be future-proof. It requires support and input from the Board and business leaders, working alongside HR and finance.
While strategic workforce planning provides the blueprint for future talent requirements, an aligned HR function is critical to translate these insights into actionable people practices. In an environment of economic uncertainty and talent scarcity, a forward-looking HR function ensures employees are deployed strategically and key talent is retained under pressure. To achieve this, organizations must rethink traditional talent approaches. In today’s dynamic landscape, the scope of traditional talent management has become too narrow. Organizations should broaden their approach to talent enablement, ensuring their HR practices are agile, personalized, and directly linked with the strategic (workforce) plan of the organization. Employability becomes central: career paths must evolve from linear, hierarchical models to fluid, skills-based trajectories.
This need is underscored by broader workforce trends: the World Economic Forum estimates that, due to macrotrends such as digitalization and AI, 22% of jobs will change in the coming years, with new roles emerging and others becoming obsolete[1]. In this context, reskilling and upskilling are essential tools to bridge the gap between current capabilities and future needs. As the value of a skill increasingly depends on how well it complements other capabilities, organizations must focus not only on building new skills but also on fostering a growth mindset and agility. This allows employees to adjust to changing roles, apply their skills effectively, and maintain productivity, helping the organization remain resilient in turbulent times.
To turn strategic workforce plans into initiatives that deliver real impact, workforce data and digital tools are an essential lever. They allow HR, business leaders, and boards to make informed, data-driven decisions, track progress, and identify skill gaps across the organization. By leveraging scenario planning and forecasts, businesses can connect workforce initiatives with broader organizational priorities, ensuring that people strategies are not only proactive and fully integrated in the decision-making framework of the organization, but also contribute to agility and real-time responsiveness during business disruptions, as the necessary insights are immediately available. This digital HR approach strengthens the credibility and impact of all people-focused initiatives.
By combining strategic workforce planning with a future-proof HR function that emphasizes talent enablement, skills development, and data-driven workforce insights, Boards and CHROs can unlock the full potential of their people while meeting the challenges of a turbulent environment.
Boards should:
- Prepare for and respond to changing conditions both within and outside of the organization, such as workforce implications of AI, changing market conditions, and regulatory requirements;
- Integrate workforce planning with financial and business planning;
- Build succession plans for leadership roles; anticipate challenges to filling critical roles or retaining key talent; and
- Foster internal mobility via re- and upskilling.
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