Workforce Planning ROI

Calculating the Return on Investment(ROI) for workforce planning justifies its value in financial terms. 

ROI is calculated by quantifying the benefits and subtracting the cost of the planning function, then dividing by the cost. 

Benefits can include: 

Cost Avoidance: Reduced overtime and agency fees from better planning. 

Productivity Gains: Higher output from better-skilled teams. 

Reduced Turnover Costs: Savings from retaining key talent (calculate cost per hire and lost productivity). 

Improved Revenue: From faster time-to-market enabled by having the right talent. 

A strong positive ROI demonstrates that workforce planning is not a cost center but a value-driving investment.