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Oracle Strategic Workforce Planning

The SWP offering from Oracle is more geared towards the HR users. It acts as a collaborative platform between Finance, HR and Executive leadership team. There are two main modules within SWP offering — Head Count Planning and Labor Cost Planning. I will be focusing more on the Head Count Planning module of SWP in this article.

Labor cost planning is the same offering as what we have in Planning (Workforce Planning module).

Typical Workflow

Executive leadership team decides the long term goals. It could be net new expansion or developing a new product or entering a new market etc. Based on these goals the HR organization analyzes the current workforce from different angles:

  • Demand : What is the demand for critical jobs to meet our strategic goals
  • Supply : How does supply look like for the next few years
  • Skills : Do we have enough resources with the necessary skills to achieve the strategic goals

Once you look at the above data you can become more proactive and not reactive. You are ahead of the game.

Demand Planning

Demand planning is performed using Demand Drivers. You have the flexibility to define and configure the drivers that are relevant to your organization. There are out of the box calculations provided by Oracle. As always, you do have the option to configure custom calculations.

Based on the drivers you define, the system will calculate and project the demand for critical jobs for the defined time frame. You can include additional attributes like utilization rate or efficiency increase etc. You can read more about the various calculations here.

Supply Planning

The supply planning drivers allow you to forecast the supply of manpower. By default Oracle SWP offers two supply planning drivers

  • Attrition Rate
  • Retirement Age

Once you set the attrition rate values (by job or by age band) and the retirement age, the system will take into account the attritions and retirements in the near future while forecasting the supply.

This helps you to identify the Supply vs Demand variance.

Supply vs Demand Variance Analysis

Now that you have calculated/forecasted the supply and demand based on your critical jobs, what is the next step? Well it totally makes sense to look at the Supply vs Demand Variance.

Lets’ look at an example. Based on the strategic goal, your organization needs 20 app developers (demand) and based on the supply drivers you have 9 app developers (supply). The variance between supply and demand is 9–20, which is 11. So you are going to need 11 more app developers to meet your strategic goals.

Skill Gap Analysis

You do have the option of performing skill gap analysis. In the below spider graph you can notice that we have identified 5 key skills needed to achieve your strategic goals. We have mapped the target rating vs the current for each of the key skills. It is immediately visible that the organization lacks skills and experience in these categories.

Based on the analysis you may plan to:

  • Hire new Talent
  • Analyze your workforce at other locations and may transfer suitable resources from one location to another
  • Cross Train current resources
  • Invest in Learning initiatives

Workforce Planning

SWP also includes the Labor cost planning module. This helps you analyze the compensation and non compensation expenses associated with the workforce. You can also model out new hire requisitions to analyze how hiring new talent affects the compensation and non-compensation expenses.

Integration with HCM or HR Systems

Oracle SWP has the flexibility to integrate with any HCM / HR Systems. There is out of the box integration with Oracle HCM Cloud. The application has various tools to integrate with non-Oracle (on-premise and cloud) HCM / HR systems.

Conclusion

SWP is built on top of Oracle EPM’s robust functionality. The application allows HR team at an organization to model out different scenarios for headcount planning. They have the flexibility to analyze the compensation and non compensation expenses of the workforce. With new functionality being added every month, the application is just going to get better and better.

Let me know if you have questions on Oracle SWP. As always I welcome your feedback. Happy reading.

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Arun Raj

Arun Raj

Manager Strategic Cloud Services (Oracle Cloud ERP, EPM), Integration Specialist, Big Data, Data Science & Python Enthusiast)