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Recruitment & Selection
Performance Management Compensation & Benefts
Learning & Development
Employee Relations
Career Management
Talent Management & Succession Planning
manpower planning
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1
Tips on
Toolkit
To start, you can navigate around thecontent page to get to the respectivesection that you wish to access.
To go back to the content page, simplyclick on the home icon on the top
left-hand corner of every page.
You can also download the various tools
and templates directly.
* Kindly note that internet connection is required
2
3
4
Click on any italicized/ underlinedtext to go to the reference page.
DISCLAIMERBy registering and downloading the HR Capability Toolkit, you agree to the following:
The Information, forms and templates (Information) contained in this Toolkit are for
general information purposes only. Whilst we endeavour to keep the Information up-to-date and correct, we make no representations or warranties of any kind, expressed orimplied, regarding the completeness, accuracy, reliability, suitability of the Informationfor any purpose. Any reliance you place on the Information is therefore strictly at yourown risk. Further this Toolkit and the website is provided on an as available basis. Inno event will SNEF, SPRING or WDA will be liable for any loss or damage, including,without limitation, indirect or consequential loss or damage arising from, or in connectionwith the use of the Information or this Toolkit or any material contained on the website.
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01Manpower planningIntroduction
Purpose
Benefits
Framework
A1.1 Guidelines on manpower planning
A1.2 Alternative methods of manpower planning
Atlas Sound & Vision Pte Ltd
TME Systems Pte Ltd
APPENDICES
case stoRies
[ 02 ]
[ 02 ]
[ 03 ]
[ 04 ]
[ 16 ]
[ 23]
[ 29 ]
[ 31]
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Tools
And
Templatesclick to download
( internet connection required )
T1.1 MANPOWER REQUIREMENTS
T1.2 MANPOWER COST ANALYSIS (SAMPLE)
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsx8/13/2019 1 Manpower Planning
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manpower
planning
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02
IntroductionManpower planning is the process of assessing current
workforce capabilities, demographics and work processes;
determining future workforce requirements; identifying gaps
and implementing solutions to bridge the gaps.
PurposeThis policy establishes the guidelines to plan for the
appropriate type and number of employees, avoiding the
cost of overstafng or understafng.
MANPOWER PLANNING - INTRODUCTION & PURPOSE
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
For start-ups, the typical steps in a manpower planning process may
not apply. Such companies are advised to try alternative manpower
planning techniques.
Please refer toA1.2 Alternative methods of manpower planning.
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MANPOWER PLANNING - BENEFITS 03
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
The outcomes of this process will enable companies to better
recruit and select the right people. At the same time, companies will be able to
establish effective learning and development plansfor its staff. Last but not least,
a well thought through manpower plan will enable companies to better strategise
its career management plans to develop and groom employees to full their
manpower needs.
BENEFITS
Manpower planning is key to theimplementation of a companys business
strategy. It enables the company to recruit
and retain the right mix of people it requires
to support its business needs. At the same
time, it will serve to pre-empt problems of
manpower surplus and shortage. Manpower
costs may be lower because management
can anticipate imbalances before theybecome unmanageable and expensive.
A structured manpower planning process
allows a company to understand the effort
needed for the different activities in each
unit, section or department. It ensures that
a company has the right mix of skills and
the optimal number of people to do the
work, leading to more efcient utilisation of
workforce. Management can better explore
alternative stafng options other than
permanent staff, for example, employment
of part-timers and re-employment of older
employees.
Manpower planning also providesmanagement with a good perspective of
how anticipated changes in the business
will impact manpower requirements and
allows time to locate the right talent to ll
existing and forecasted gaps.
Manpowerplanningiskeytotheimplementationofacompanysbusinessstrategy.
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04
manpower
planning
frameworkThe manpower planning framework allows a companys Human Resource
Department to develop an action plan for the organisations present andfuture manpower requirements in response to business needs.
MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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05
[A]
FORECASTING
FUTURE
BUSINESS
REQUIREMENTS
[B]
DETERMINING
MANPOWER
REQUIREMENTS
FOR THE YEAR
[C]
DETERMINING
MANPOWER
COSTING
[D]
DEVELOPING
ACTION PLAN
TOOLS /
TEMPLATES
APPENDICES /
REFERENCES
STEPS IN
PROCESS MAP
[A1.1] Guidelines formanpower planning
Steps 4, 5[T1.1] Manpower
requirementstemplate
[A1.2] Alternativemethods of manpower
planning
[T1.1] Manpowerrequirements template
Steps 6, 7[T1.2] Manpowercost analysis
Budgets
Performance targetand standards
Guidelines on:
- Recruitment and selection- Learning and development- Career management- Compensation & benets- Performance management
Step 8
Business plan Steps 1, 2, 3
Figure 1-1: Manpower planning framework
MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/pdf/2_Recruitment_and_Selection.pdfhttp://www.hrcapability.sg/toolkit/pdf/5_Learning_and_Development.pdfhttp://www.hrcapability.sg/toolkit/pdf/6_Career_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/3-Comp_and_Ben.pdfhttp://www.hrcapability.sg/toolkit/pdf/4_Performance_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/4_Performance_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/3-Comp_and_Ben.pdfhttp://www.hrcapability.sg/toolkit/pdf/2_Recruitment_and_Selection.pdfhttp://www.hrcapability.sg/toolkit/pdf/6_Career_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/5_Learning_and_Development.pdfhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsx8/13/2019 1 Manpower Planning
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06
1 2 3 8
4
5 6 7
Determine manpowerand skill sets neededin order to meet
objectives
Forecastbusinessrequirements
Conduct manpoweranalysis; obtain gapinformation between currentand desired staff strength(T1.1 Manpower Requirement)
Dene strategicdirection of theorganisation
Submit plan formanagementapproval
ApproveManpower plan,hire if required
Cascade targetsto departmentlevel
Complete manpower costanalysis, include plan withskill sets required from staffto meet business objective(T1.2 Manpower Cost Analysis)
Figure 1-2: Manpower planning process map
MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
START END
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsx8/13/2019 1 Manpower Planning
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07MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
Process Owner:
This exercise is conducted on an annual basis
during the annual business planning and
budgeting exercise.
Management will determine the business
objectives and growth forecast for the year and
subsequent years, where applicable. Examples
of these objectives include:
Increase annual turnover from $X to $Y
Increase demand for product A by 20%by forming partnerships with overseas
distributors
Scale down retail operations to focus on
core competencies such as marketing and
distribution management
[A]
FORECASTING
FUTURE
BUSINESS
REQUIREMENTS
LeadingManagement
SupportingHeads of Department (HODs)
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
The following considerations should be noted during this process as thiswill impact future needs:
Sales and production forecasts
Seasonal variations
Manpower budget
Timeline for acquiring or developing human resources
Number of employees
Mix of casual, permanent and contract positions
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08MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
Based on the objectives set by management, the HODs, in conjunction
with the immediate supervisors will set targets for their respective
division, department and/or function. This forms the basis for determining
manpower requirements for the year.
An example of a target for an F&B company would be to
achieve a 10% increase in monthly sales for a particularrestaurant outlet.
EXAMPLE
Changes in the division/department structure (i.e. newly created
functions/sections/units and streamlined functions resulting in
consolidated, eliminated or expanded sections or units)
Employee productivity rates and use of technology or equipment
that enhances productivity/efciency resulting in reduced manpower
requirements
Changes in employment practices (i.e. use of subcontractors or agency
staff, substitution and simplifying tasks/work processes)
Changes in government policies (i.e. MOM quota on foreign workers
and investment incentives)
Short-, mid- and long-term requirements
Existing and required talent pools
Existing and required competencies
Succession planning
Job levels
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09
The HODs are responsible for determiningmanpower requirements for the year ahead to
achieve the target established. The HODs should
work with supervisors during this process.Process Owner:
Leading
Heads of Department(HODs)
Supporting
Human ResourceDepartment (HR)
[B]
DETERMINING
MANPOWER
REQUIREMENTS
FOR THE YEAR
The HR department is responsible for overseeing
and facilitating the annual manpower planning
process by providing the HODs with guidelines
and templates including payroll budget, salary
ranges, manpower requirements template.
Please refer toT1.1 Manpower Requirements,for a sample of a manpower
requirements template.
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
1
step
2
step
3
step
4
step
Dene current activities for each
department
Estimate the future staff and man-
hours required for Executives and Non-
Executives
Forecast possible loss of existing staff
during the year through retirement,
resignation and transfers
Determine number of people to recruit,
redeploy, train and promote during
the year
The typical steps in the manpower planning
process are:
MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsx8/13/2019 1 Manpower Planning
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10MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
The plan should remain exible and take into account both micro and
macroeconomic considerations. You may need to consider:
Factoring in sales and production forecasts, manpower budget and
timeline for training and developing employees.
Recruiting different types of workers, other than full-time and
permanent staff, to meet the varying demand pattern over time. For
a restaurant, this may include hiring part-time waiters to supplement
full-time crew during a busy weekend period.
Employing workers across more than one function. To increase
productivity, a waiter may also be assigned to help out with kitchen
preparation during off-peak hours. Factor in expected changes in
productivity when estimating future activity time.
Responding to labour supply conditions.
Responding to changes in government policies such as foreign
manpower policies and investment incentives.
Please refer toA1.1 Guidelines on Manpower Planningfor step-by-step instructions on determining manpower requirements and
T1.1 Manpower Requirementsfor a template.
For example, investment in automation will help
decrease certain activity time.
EXAMPLE
For example, when the unemployment rate is low,
competition in the labour market will intensify and
companies may experience higher employee turnover.
EXAMPLE
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsxhttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.1%20-%20Manpower%20requirements_091012.xlsx8/13/2019 1 Manpower Planning
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11MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
The departments projected manpower cost for the
year is determined by the calculation of current,
along with projected manpower costs. These
include existing employment costs, estimated
salary increments, and statutory payments for the
following year along with projected increases of
headcount by job level.
Process Owner:
LeadingHeads of Department(HODs)
Supporting
Human ResourceDepartment (HR)
[C]
DETERMINING
MANPOWER
COSTING
The HODs are responsible for determining the
cost implications of the forecasted manpower
requirement of his department.
Head count is the total number of permanent and
contract staff that the department is expected to hire
based on manpower requirements.
Total salary costrefers to gross salary inclusive of
overtime payment, allowances, annual bonus andincentive payments.
Total benets costrefers to employee benets such
as medical insurance, annual leave, holiday subsidy,
etc.
Total statutory payments include CPF, Skills
Development Levy and Foreign Worker Levy.
Total current employment costis the sum of total
salary cost, total benet cost and total statutory
payments paid by the company for the current year.
Average cost per employee is the calculation of
total employment cost divided by all employees
within each job category.
Projected cost increment refers to the percentage
increment for all current staff for the following year.
The aggregate sum of the total projected manpower
cost is derived from the following components:
1
2
3
4
5
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
6
7
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12MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
The HOD is responsible for justifying forecasted manpower requirements
and projected manpower cost when presenting to Management for
approval.
Net benet of the proposed manpower plan should be evident from the
increased productivity of employees and the consequent improved
performance of the department. You may consider some of the following
measures to determine the net benet:
Management will review the manpower
plan and evaluate the net benet it isexpected to bring to the company. If
the manpower plan is deemed to be
inefcient, Management may implement
supplementary measures such as process
redesign, train ing and automation to
improve productivity. The estimated future
man-hours required may decrease as a
result of increased productivity.
Employment cost per unit of output
Sales per employee
Amount of product handled per man hour
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
Projectedmanpowercostdependsonfactorslikeheadcount,totalsalaryco
st,andtotalstatutorypayments.
Projected average employment cost per employee for the following year
is the sum of the total current employment cost for all employees divided by
current head count.
Projected total head count refers to the increase (or decrease) in head
count based on business needs.
Projected total employment costis the multiplication of projected headcount
for the following year with the projected average expected employment cost
per employee.
8
9
10
Please refer toT1.2 Manpower Cost Analysisfor an example of manpower
costing computation.
http://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xlshttp://www.hrcapability.sg/toolkit/tools_n_templates/1/T1.2%20-%20Manpower%20cost%20analysis_091012.xls8/13/2019 1 Manpower Planning
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13MANPOWER PLANNING - MANPOWER PLANNING FRAMEWORK
Process Owner:
LeadingManagement
Supporting
Human ResourceDepartment (HR)Heads of Department(HODs)
[D]
DEVELOPING
THE ACTION
PLAN
After the manpower plan has been approved by
Management, the HOD will work with HR to full
the manpower requirements. Here are some
methods of doing so:
Recruitment and Selection
Identifying ways and channels to recruit new hires.
Career ManagementLook within the organisation to nd suitable
candidates and deploy them to work in new areas.
Job Redesign
This refers to enhancing the scope of an employees
job to provide an opportunity for the individual to
offer more value add in his scope of work. This
could include the provision of end-to-end services.
1
2
3
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
Refer to Recruitment and Selection Module for
more details.
Refer to Career Management Module for
more details.
In the Hotel industry, it is
increasingly common for the guest
relations ofcer to double up as a
concierge or to assist in the Food
and Beverage department.
EXAMPLE
http://www.hrcapability.sg/toolkit/pdf/2_Recruitment_and_Selection.pdfhttp://www.hrcapability.sg/toolkit/pdf/2_Recruitment_and_Selection.pdfhttp://www.hrcapability.sg/toolkit/pdf/6_Career_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/6_Career_Management.pdfhttp://www.hrcapability.sg/toolkit/pdf/2_Recruitment_and_Selection.pdf8/13/2019 1 Manpower Planning
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7
6
Learning and Development
Prepare existing employees for new responsibilities by offering on the job orother internal/external trainings. Collaboration with similar organisations may
also be considered to reduce the cost incurred for specialised training.
Restructuring
This is a long-term strategy that involves the reorganising of work units to
leverage on synergies. There may be a need to reduce workforce over time by
redeployment or attrition.
OutsourceNon-strategic and non-core competencies can be outsourced to external
organisations (e.g. cleaning, security services, IT, payroll, warehousing).
Other options
Company can choose to tap on contract staff and/or interns from tertiary
institutions to meet temporary or short-term needs for increased manpower.
A permanent role for an employee on a part-time basis (
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Appendices
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16MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
A 1.1GUIDELINES
on manpower
PLANNINGStep 1:Dene current activities for each departmentStep 2: Determine the current annual man-hours
required for Executives and Non-Executives
Step 3:Dene future activities for each department
Step 4:Estimate the future man-hours required
Step 5:Forecast losses of existing staff during the year
Step 6: Determine number of people to recruit andpromote during the year
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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17MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
Develop a complete list of current activities for the department. These activities
may be categorized into transaction-type activities (i.e. very repetitive,
standard procedures and duration) and non-transaction-type activities (i.e.
less repetitive and non-standard).
Figure 1-3: Manpower requirements sample (Step 1)
STEP 1:
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
Manpower requirements -
Department:
Transactiovolume
yeaExecutiv
and Non-Executive
abov Non-Transaction type1No. of invoices2No. of payments to local3Issuing debit4No. of petty cash5No. of credit note6No. of journal vouchers
Non-transaction type
7Sales interface8Management9Cash position
1 Others (Project Total
Gap/surplu
Man-hours required perActivity time
Future headcount
Current
Final
Loss through resignation
Loss through transfer
Loss through retirement
For each division/ department/ function and job level,all activities and categorise into transaction or
transaction
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18MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
For transaction-type activities, record the following:
For non-transaction type activities, man-hours required in a year may
be calculated in the same way, if activity time is quite standard and the
transaction volume may be estimated accurately. In some cases (e.g. one-off
projects), allocate a reasonably estimated man-hour number for the activity.
Figure 1-4: Manpower requirements sample (Step 2)
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
The estimated transaction volume/frequency in the current year
The activity time (in hours) of Executives and Non-Executives required
for each transaction
Multiply the transaction volume and activity time to get the total numberof man-hours required in a year.
STEP 2:
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19MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
In the same way, develop a complete list of activities for each department.
Newly planned activities are included in the list.
Figure 1-5: Manpower requirements sample (Step 3)
STEP 3:
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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20MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
Like current man-hours, the future man-hours required for both Executives
and Non-Executives are determined by multiplying the transaction volume and
activity time for transaction-type activities and by allocation of a reasonably
estimated man-hour number for non-transaction type activities.
Any changes in productivity level should be reected in the estimation (e.g.
change to activity time or transaction volume).
Figure 1-2: Manpower requirements sample (Step 1)
STEP 4:
Figure 1-6: Manpower requirements sample (Step 4)
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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21MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
Existing Executives and Non-Executives may be lost due to resignation,
retirement or transfers to other departments.
The resignation rate, retirement rate and transfer rate during the year isestimated. Multiply them with the current headcount to get an estimated loss
of staff during the year.
STEP 5:
Figure 1-7: Manpower requirements sample (Step 5)
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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22MANPOWER PLANNING - GUIDELINES ON MANPOWER PLANNING
Establish the effective hours in a man-day (excluding meal hours and breaks).
Establish the number of working days in the year by deducting the number
of days of public holidays, rest days and non-working days, annual leave,
estimated sick leave, other applicable types of leave and training days. Multiplythe result with the effective hours per day to get the effective working hours in
a year.
Divide the future man-hours required by the effective hours in a year to get a
future headcount needed.
Deduct the current headcount against future required headcount. Add the
forecasted losses during the year. The resulting number is the nal gap (i.e. the
headcount that has to be recruited or promoted/transferred in during the year).
STEP 6:
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
Figure 1-8: Manpower requirements sample (Step 6)
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23MANPOWER PLANNING - ALTERNATIVE METHODS OF MANPOWER PLANNING
A1.2
Alternative
Methods of ManpowerPLANNING
The usual manpower planning process may not apply to start-ups or
companies with limited number of employees. Such companies may refer
to benchmarks used within their industry to estimate their manpowerrequirements.
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
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TREND ANALYSISThis approach involves studying the variation of employees over the
last few years in each department (e.g. Sales, Projects, Finance, IT,
Marketing). The company may wish to look at the number of employees
in each department over the past 3-5 years, or the number of employees
in each subgroup at the end of each year over a 3-5 year period. This is
done to identify trends that may continue into the future.
1
24
Elements such as sales volume changes and productivity
enhancements may also affect stafng gures.
NOTE
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
MANPOWER PLANNING - ALTERNATIVE METHODS OF MANPOWER PLANNING
Thereareseveral
methodsof
determiningmanpower
requirementsavailable.
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25
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
MANPOWER PLANNING - ALTERNATIVE METHODS OF MANPOWER PLANNING
3 BUSINESS UNIT FORECASTINGThis approach is done by HR meeting up with supervisors and managers
to come up with an estimate for the manpower requirements of the
company for the upcoming year. This may involve managers using unit
or trend forecasting to derive the estimates.
RATIO ANALYSIS
This approach is done by making forecasts based on the ratio between
a causal factor (e.g. sales volume) and manpower required for the work
to be done (e.g. number of sales staff).
Example:
If it takes 20,000 man hours to complete a specic project, completing thisproject within 6 months (or 180 days), will require a minimum of 14 staff to beon this project for an average of 8 hours per day. In this scenario, historical
values are used as a sample to plot estimated manpower requirements.
REQUIRED TO COMPLETE 20,000 MAN HOURS IN 180 DAYS
NO. OF HOURS PER DAY = 8 HRS
MIN. NUMBER OF STAFF = 14(188)
20,000
2
Factors such as sick leave, rest days, non-working days, public
holidays and training days have to be taken into consideration.
This approach does not take into consideration enhancements
in productivity and extra hours put in by employees.
NOTE
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FUNCTION KPI GUIDELINE
HR*
HR full-time equivalent
employees (FTEs) toemployee ratio
SALES
ALL
Sales per person
Ratio of full time staff topart-time staff, temporarystaff, interns
Fewer than 100 3.03
100 to 249 1.36
250 to 499 1.01
500 to 999 0.98
1,000 to 2,499 0.87
If the company wants to achieve asales target of $1 million and salesrevenue per person is estimatedto be $0.25 million, then number ofsales people required is 4.
For companies that have seasonalvariations in manpower requirement,temporary staff and interns may beused during peak periods.
Here are some widely accepted ratios for a selection of functions that may be considered
when planning for manpower requirements:
*Source: SHRM Human Capital Benchmarking Study 2009
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
MANPOWER PLANNING - ALTERNATIVE METHODS OF MANPOWER PLANNING
If a company has a total
staff of 823, the number of
HR personnel would be
(100)
823 x 0.98 8
NOTE
To use as a guide
especially if
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INDUSTRY KPI POSSIBLE CONSIDERATIONS
ProfessionalServices, Sales,
Real Estate,Manufacturing
Revenue per employee
Retail
Food andBeverages
Number of customersto serve
Number of tables perwait staff
If the target revenue is $5 millionand on an average an employeegenerates $1 million revenue peryear, then number of employeesrequired will be 5.
Depends on whether the
retail environment is a high-touch or low-touch one, toconsider the following options:
- Ratio of number of servicestaff to customer (e.g. HighTouch 1:1, Low Touch 1:5)
OR
- Number of service staff
responsible per square feetof retail space (e.g. High Touch 1 staff per 300 square feet, LowTouch 1 staff per 1000 square feet)
Depending on the quality of serviceprovided and type of cuisineoffered, an employer may chooseto have a ratio of wait staff to tablesin a restaurant.
Minimum
1 server per 3 tables
Optimum
1 server per 2 tables
Premium
2 to 3 servers per 3
tables
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
MANPOWER PLANNING - ALTERNATIVE METHODS OF MANPOWER PLANNING
EXAMPLE
For a sit-down dinner
for 10 people:
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case
stories
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ATLAS SOUND & VISION PTE LTDFast Facts:
Year of Incorporation: 1963
Staff Strength: 100
Industry Focus: Retail
Sales Turnover: S$20-S$50 Million
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30MANPOWER PLANNING - CASE STORIES
Copyright 2012 SPRING Singapore and Singapore National Employers Federation. All rights reserved.
After attending the manpower planning
training workshop, Atlas used the
manpower requirement template for
manpower planning on its retail and projectteams to ascertain the effectiveness of
the Toolkit. Through experience, Atlas has
found the manpower planning template
more applicable for jobs that are more
transactional and predictable in nature.
Benets of using the HR Toolkit
The use of this template has helped themanagement of Atlas better understand
the job activities of each individual.
This knowledge has helped Atlas to
improve the recruitment and selection,
and performance management for new
employees. With a better understanding
of how to use the template, Atlas will now
use it to evaluate the work done by its
Finance team and to see how technology
can be used to reduce the workload of
some of its executives.
Background of company
Atlas Sound & Vision is a reseller and
distributor of premium audio and visual
products within Singapore, and has a staffstrength of 95 in Singapore, 30 in Malaysia
and 5 in Australia. Incorporated in 1962,
they have seen rapid growth in both their
revenue turnover and headcount over the
past decade with a combination of strong
leadership and the foresight to capitalise
on business opportunities.
Self-implementing the manpower
planning framework
Prior to the implementation of the
HR Capability Toolkit, Atlas, like
most companies in its initial phase of
development, did not have a clearly dened
approach to manpower planning. Its
organisation structure was unstructured,
and existed to serve the business needs
of the company. Manpower planning was
based on industry and competitor norms
and supplemented with each business
units manpower requirements.
Atlas Sound &
Vision Pte Ltd
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TME Systems Pte LtdFast Facts:
Year of Incorporation: 1986
Staff Strength: 20 (At HQ Level)
Industry Focus: IT Engineering
Sales Turnover: S$5-S$20 Million
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32MANPOWER PLANNING - CASE STORIES
TME Systems Pte Ltd
During a deep-dive study of TMEs
manpower needs, the company realised
that they were facing challenges due to
a lack of HR resources. The absence of
business forecasting for each division
also revealed the reason for challenges in
ascertaining its manpower requirements.
A manpower audit also revealed their
shortage of senior positions critical
to leading its day-to-day operations.
TME took up the recommendations made
by the consultant and customised the
templates in the HR Capability Toolkit to
meet their specialised business needs.This helps each division to better plan for its
resources needs. The better management
of workload for its employees has resulted
in a lower attrition rate compared to
previous years, and has given the company
the condence to come up with an
improved set of recruitment and selection
procedures to improve the suitability andquality of new employees to TME.
Background of company
TME Systems Pte Ltd Singapore was
established in 1986 and specialises in
automation testing and measurement
solutions for high tech products. Its
core capabilities are in the distribution
of world-class cutting edge technology
products, industrial automation
solutions, education trainer solutions
and test and measurement solutions.
Issues faced by company
Manpower has always been a key
concern for TME as its employees
have to go through rigorous training tospecialise in the niche areas that the
company operates in. Due to the heavy
investment in training, it has been a costly
endeavor whenever an employee leaves
the organisation as TME would have
to devote resources in training a new
employee. This problem is exacerbated
by a lack of dedicated HR resources toaddress the attrition issues.
Better manpower planning through
the HR Toolkit
TME worked with SNEF Consultants
to better ascertain its manpower gaps
and to better plan its manpower needs.