workforce analysis

What Is a Workforce Analysis?

A workforce analysis is a systematic process organizations use to assess their workforce’s current composition and capabilities and determine what changes are needed to align it more closely with their strategic objectives. This analysis typically examines various aspects of the workforce, including the number of employees, their skills, age distribution, diversity characteristics, and other demographic data. It also considers factors like employee turnover, recruitment rates, and future workforce needs based on business growth and strategic goals.

The purpose of conducting a workforce analysis is to identify gaps between the current state of the workforce and the human resources needed to achieve business goals effectively. This allows organizations to plan for training, hiring, and development initiatives that close these gaps. Additionally, workforce analysis helps ensure compliance with legal and regulatory requirements related to employment and diversity.

What Are the 6 Stages of a Workforce Analysis?

The six stages of a workforce analysis typically include:

  1. Identifying Objectives: Clearly define the purpose and goals of the analysis.
  2. Gathering Data: Collect relevant workforce data, including demographics, skills, and performance metrics.
  3. Analyzing Data: Review and analyze the collected data to identify trends, gaps, and areas for improvement.
  4. Developing Solutions: Based on the analysis, propose strategies and solutions to address identified needs and challenges.
  5. Implementing Solutions: Put the proposed solutions into action, which may involve training, recruitment, or restructuring.
  6. Monitoring and Evaluating: Continuously monitor and evaluate the effectiveness of the implemented solutions, making adjustments as needed to ensure alignment with organizational objectives.

How Can You Use a Workforce Analysis?

Workforce analysis provides valuable insights to inform strategic decision-making and optimize workforce management practices. Here’s how you can use a workforce analysis:

  • Identifying Skill Gaps: Analyze current workforce skills against future business needs to identify areas where additional training or recruitment may be necessary.
  • Optimizing Recruitment and Hiring: Use workforce analysis to tailor recruitment efforts to attract candidates with the skills and qualifications needed to fill identified gaps.
  • Improving Employee Retention: Identify factors contributing to turnover and implement strategies to improve retention, such as addressing workplace culture issues or offering career development opportunities.
  • Enhancing Performance Management: Use workforce data to establish performance benchmarks, track progress and provide targeted feedback and support to employees.

Informing Succession Planning: Identify potential future leaders and develop succession plans to ensure continuity in critical roles.

Latest Updates

How to Influence Change in the Workplace
How to Influence Change in the Workplace

Influencing change is an essential skill in today’s evolving workplaces. Whether you want to introduce new ideas, improve processes, or shift company culture, knowing how to gain support and navigate obstacles can make all the difference. This article explores why...

Peak Performance Masterclass Awarded Gold Globee®
Peak Performance Masterclass Awarded Gold Globee®

INTOO is proud to announce that it has been named a winner of a Gold Award at the 10th Annual Globee® Awards for Achievement, a distinguished program honoring outstanding achievements in business by companies based in the United States. The Peak Performance...

How to Utilize Career Mapping Effectively 
How to Utilize Career Mapping Effectively 

Career mapping is gaining traction for a reason—it’s a powerful strategy for building an agile, motivated, and future-ready workforce. By providing employees with clearly defined paths for advancement and skill development, organizations can foster a culture of...

How to Achieve Organizational Goals in 2025
How to Achieve Organizational Goals in 2025

Reaching company goals takes more than just writing them down. It requires a thoughtful, strategic approach that connects these goals to every part of the business—operations, culture, and leadership. It’s not just about what you want to achieve, but why it matters...