In today’s data-driven business world, leveraging workforce analysis can provide valuable insights that help optimize operations and improve decision-making. By examining key data points like turnover rates, employee performance, and demographics, companies can gain a clearer understanding of their workforce and enhance their strategic planning. One area where workforce analysis can have a significant impact is in shaping effective employee training strategies.

A comprehensive analysis helps identify skill gaps within your team and uncovers opportunities for growth. For instance, if you’re looking to create reskilling or upskilling programs—training employees to fill more advanced roles—this kind of analysis offers a solid foundation for identifying who can be trained to meet these needs.

What Is Workforce Analysis?

Workforce analysis is the process of collecting and evaluating data about your employees. This can be done internally through surveys, interviews, or audits, or it can be outsourced to external firms. The analysis can focus on a particular department or be a companywide assessment.

The data collected helps assess whether your labor force is sufficient to meet your business needs. It can also identify areas where specific training may be required, such as ensuring employees are equipped to operate new machinery or technologies.

Why Workforce Analysis Matters

Every business aims to meet specific goals, and an analysis helps ensure those goals are achieved by providing data-driven insights. According to Forbes, the outcomes of a well-executed workforce analysis can have lasting effects on a company’s operations, especially when it comes to workforce development.

For example, an analysis might reveal a shortage of experienced technicians while identifying less experienced employees who are eager to learn. By focusing training resources on these individuals, companies can build an internal talent pipeline. Additionally, for long-term planning, a workforce analysis may uncover the need to hire skilled workers for new technologies before investing in automated machinery.

In today’s competitive labor market, where skilled workers are hard to find and retain, this analysis helps businesses make smarter decisions about recruitment and training.

How to Conduct a Workforce Analysis

Workforce analysis can be carried out by an organization’s HR or learning and development (L&D) teams or outsourced to third-party vendors. As an L&D leader, understanding how to conduct this analysis is essential for ensuring that your team is equipped with the necessary skills for future business needs. The process typically involves the following steps:

1. Supply Analysis
A supply analysis evaluates your current workforce, including the number of employees, demographics, skill sets, and promotions. It provides insight into how your workforce may evolve over time and helps you plan for future training and development needs.

2. Demand Analysis
A demand analysis forecasts the company’s future workforce needs based on factors like employee expectations, upcoming projects, market changes, and new technologies. This step helps anticipate potential increases in demand for specific skills and guides decisions on staffing and training.

3. Gap Analysis
A gap analysis compares the supply and demand of your workforce. It highlights any discrepancies, such as a shortage of key roles like HVAC technicians or an excess of workers in other areas. This data is crucial for shaping recruitment strategies and aligning your workforce with business goals.

Although conducting an analysis requires time and effort, the benefits it provides in terms of long-term workforce planning and training strategy optimization are invaluable. It helps learning leaders identify critical skills gaps and ensures that the workforce is prepared for both present and future challenges.