What Is Workforce Planning? Steps & Examples
What is workforce planning? It is the process of working out how many people you need, with which skills, and when, then deciding whether to hire, train, borrow or reroster to meet that need. Done well, it stops last-minute hiring and costly gaps. This guide shows the steps, a simple skills gap analysis and how to mix permanent, casual and labour hire staff, and it supports our guide on how to hire employees.
- Workforce planning compares the people and skills you have now with the people and skills your work will need over the next 12 months.
- A skills gap analysis turns that comparison into a short list of actions: hire, train, redeploy or use labour hire.
- Casual conversion, the 38-hour week, award rates and payroll tax all affect what a headcount plan really costs.
- Plan for lead times, because tickets, white cards and police checks take time before a new starter can work.
What is workforce planning?
It is a repeatable way to match labour to work, refreshed when a contract is won or lost.
| Term | Meaning | Why it matters |
|---|---|---|
| Workforce planning | Forecasting the headcount and skills you need, then deciding how to supply them. | It cuts urgent hiring and overtime driven by poor forecasting. |
| Human resource planning | The same discipline viewed through HR: recruitment, development, retention and succession. | It links the plan to pay, awards and compliance. |
| Skills gap analysis | A comparison of the skills you have against the skills you need. | It shows where to train, hire or borrow staff. |
| Staff development | Training and career steps that build the skills you will need. | It is often cheaper than hiring and helps retention. |
| Contingent workforce | Casuals, labour hire workers and contractors used to flex capacity. | It covers peaks, but each type has different legal obligations. |
What is workforce planning used for?
Most employers use it to answer a few practical questions before they advertise anything.
| Question | Planning answer |
|---|---|
| How many people will we need by season? | A demand forecast by month, based on contracts, past rosters and known projects. |
| Which roles are hardest to fill? | A list of critical roles, with the lead time to recruit or upskill for each. |
| Should we hire permanent, casual or labour hire? | A mix based on how long the work lasts and how predictable it is. |
| What will it cost? | A budget using award rates, super, workers compensation and payroll tax, not wages alone. |
| Who might leave or retire? | A succession view for key roles, with development plans for likely replacements. |
Workforce planning steps
You can complete these steps in a short workshop with your site managers and payroll.
- List your current roles, employment types and headcount, including casuals and labour hire workers.
- Forecast demand for the next 12 months by month, using contracts, past rosters and known leave.
- Define the skills, tickets and licences each role needs, such as a white card for construction work.
- Run a skills gap analysis comparing current staff with the forecast demand.
- Choose how to close each gap: recruit, train, redeploy, convert a casual or use labour hire.
- Set owners and dates, review the plan each quarter and update it when work changes.
Skills gap analysis for your workforce plan
A skills gap analysis can be a simple table that a supervisor completes for each team.
| Skill or ticket | Have today | Needed | Action |
|---|---|---|---|
| White card | Check each worker | All site staff | Book training for anyone without one. See white card NSW. |
| High-risk work licence | Count licence holders | Per shift | Train existing staff or use labour hire for peaks. |
| Supervisory skills | Rate each lead | One per crew | Offer development or promote from within. |
| Digital and payroll skills | Review the team | As systems change | Provide short training before changes go live. |
Human resource planning: headcount, awards and cost
A headcount plan is incomplete until you price it against the real rules.
- Use the Fair Work Ombudsman pay guide for each award and classification, and update rates each 1 July.
- Remember that the national minimum wage is $26.44 per hour from the first full pay period on or after 1 July 2026, with at least $33.05 for award-free casuals.
- Build in super at 12% of ordinary time earnings, and workers compensation insurance with icare.
- Check NSW payroll tax if your NSW taxable wages are above the $1,200,000 annual threshold.
- Plan hours around the 38-hour week for full-time staff plus reasonable additional hours, not unpaid extras.
Staff development inside a workforce plan
Training is a planning tool that can close a gap faster than recruiting.
- Pair experienced workers with new starters on induction shifts so knowledge passes on.
- Offer pathways from labouring to plant operation or supervision, and set clear criteria.
- Record tickets and renewal dates in one register to avoid last-minute lapses.
- Review development at probation period reviews and annual conversations.
- Use the employee onboarding checklist to make the first week count.
Workforce planning with casual, permanent and labour hire staff
The mix you choose should follow how predictable the work is.
| Option | Best for | Watch out for |
|---|---|---|
| Permanent | Steady, ongoing work with a regular roster. | Leave, notice and redundancy obligations. Use an employment contract template as a starting point and get legal review. |
| Casual | Irregular or seasonal work. | The 25% loading and the right to ask to convert after 6 months, or 12 months with a small business employer. |
| Labour hire | Short peaks and urgent cover. | The provider is the employer, and licensing differs by state, with none in NSW. |
| Contractor | Genuine independent work. | An ABN does not decide the question, so test the real relationship. |
- Use lawful, non-discriminatory interview questions that relate to the inherent requirements of each role.
- Obtain the candidate's written consent before any police check NSW, and assess a record for relevance to the role.
Common workforce planning mistakes to avoid
- Planning only headcount and ignoring the skills and tickets behind each role.
- Forgetting lead times for training, checks and inductions before a start date.
- Using casual or contractor labels to avoid obligations when the work is regular.
- Pricing wages only, and leaving out super, insurance and payroll tax.
- Writing a plan once and never reviewing it when work changes.
- Leaving workers out of the conversation, when supervisors and crews often know where the gaps are first.
Workforce planning FAQ
What is workforce planning?
It is the process of forecasting the people and skills you need, comparing them with what you have and choosing how to close the gap. The options include hiring, training, redeploying staff, converting casuals or using labour hire for peaks.
What is a skills gap analysis?
It compares the skills, tickets and experience your team has now with what the work needs. The result is a short action list, such as booking a white card course, promoting a supervisor or engaging labour hire.
How is human resource planning different?
The two overlap. Human resource planning tends to focus on recruitment, retention, development and succession, while workforce planning ties those choices to demand, cost and the mix of permanent, casual and labour hire staff.
How often should you update a workforce plan?
Review it every quarter and whenever you win or lose a contract, change a roster pattern or lose a key person. Update award rates each 1 July, because pay costs change when the new rates apply.
Next step: turn your workforce plan into action
List your next three months of demand, mark the roles you cannot fill and decide where labour hire fits. At TQN Personnel, we place screened, inducted workers across Sydney and can help you cover your next peak. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation.