Questions and answers on the subject of workforce planning in the skilled trades sector

What is the definition of workforce planning in the skilled trades?

By definition, workforce planning in the skilled trades involves determining the anticipated need for employees for the business for a specified period of time.

What is the difference between qualitative and quantitative workforce planning?

While quantitative workforce planning focuses on the number of employees required, qualitative workforce planning is concerned with the qualifications of the employees.

Why should operations managers calculate staffing requirements?

In the skilled trades, there are several reasons why staffing needs should be calculated. These include:

  • Change in the financial situation (for example, more or fewer Jobs than usual)
  • Seasonal effects (for example, strong seasonal fluctuations in the Job situation)
  • Change in operational orientation (for example, expansion of the service portfolio)

How do you calculate staffing requirements?

To calculate the net staffing requirement, the headcount is subtracted from the gross staffing requirement. The number that results from the calculation shows how many additional employees you need or have too many.

Due to the shortage of skilled workers, many plant managers complain that they will no longer be able to fulfill Jobs in the future. There is a shortage of personnel. Some companies, however, seem to be getting through this crisis well. This is due, among other things, to a skilful personnel strategy - including well thought-out personnel requirements planning. But what does this term actually mean?

One key to success as a craft business is strategic workforce planning!
One key to success as a craft business is strategic workforce planning!

Definition of workforce planning in the skilled trades sector

In Job to understand what workforce planning means, it is important to first define the term workforce requirement. Personnel requirements are the number of employees that a craft business needs to fulfill all Jobs as well as other operational tasks that arise. Planning personnel requirements ensures that sufficient employees are available to the business on a continuous basis. This means that plant managers must regularly compare staffing levels with the Job situation. 

Under these circumstances, the personnel requirements change

In principle, personnel requirements always change when the Job situation improves significantly or deteriorates. If the assignments exceed the available work hours of the employees or if individual employees go on maternity leave or retire, the personnel requirement increases. This means that new skilled workers should be sought. However, if Jobs fall sharply, the need for personnel decreases. Employees may have to be put on short-time working or even laid off in Job not to jeopardize the continued existence of the business. Plant managers cannot, of course, be clairvoyant about their staffing needs. However, there are methods for calculating personnel requirements. 

Tip: The targeted Dispatching of the workforce is also important for the success of the company. This is easily achieved with the Meisterwerk app!

With this method you calculate your personnel requirements

Before you start entering numbers into the calculator, you should determine for what time period you want to determine your staffing needs. This can be one year, for example, but also three or five years. 

Note: As always when it comes to forecasts, a smaller time span means a more accurate result.

You calculate the gross requirement in three steps: 1. gross personnel requirement 2. headcount 3. net personnel requirement
You calculate the gross requirement in three steps: 1. gross personnel requirement 2. headcount 3. net personnel requirement

Once you've set the time period, you're ready to get started, calculating your gross staffing requirements.

How to calculate your gross staffing requirements

The gross personnel requirement tells you how many employees you need in total. However, terminations, retirements, maternity leave and other departures are not (yet) taken into account here. 

Using a simple formula, you can easily determine gross staffing requirements: 

Gross staffing requirements = input requirements + reserve requirements.

Shift requirements are the total labor requirements of the operation divided by the hours worked per employee.
Example calculation of Dispatching requirements: 1275 hours / 150 hours per employee = 8.5 employees

The reserve requirement is the calculated shift requirement multiplied by the so-called distribution time factor. The distribution time factor corresponds to the absences per employee divided by the number of real working days multiplied by 100.

Example calculation of distribution time factor: 6 sick days + 30 vacation days + 10 holidays = 46 days. 256 working days - 46 = 210 real working days. 46 / 210 * 100 = 21.90 % = distribution time factor.

Example calculation of reserve requirement:8.5 * 21.90 % = 1.86 reserve requirement.

Example calculation gross personnel requirement: 8.5 + 1.86 = 10.36, i.e. 10 full-time employees plus one part-time person.

To calculate your projected headcount

How many Tradesmen and craftswomen will work in the period for which you are planning, calculate with the following formula: Headcount (current) + New additions - Departures.

Example calculation of headcount: 5 current employees + 1 new employee - 0 departures = 6 employees

How to calculate your net staffing requirements

After you have calculated your gross staffing requirements and the headcount, determining the net staffing requirements is quickly done. To do this, simply subtract the forecast headcount from the gross headcount requirement. 

Example calculation of net staffing requirements: 10.36 - 6 = 4.36. In Job to cover your staffing requirements, you would need to hire four full-time employees and one part-time person in this example

Note: Your net staffing requirement can be positive or negative. If the calculated number is positive, it means you need more employees. If it is negative, you have staff "too many".

Regardless of how your bill turns out, one thing is certain: not only does good workforce planning impact the success of your operation, but so does smart scheduling!

Deploy staff efficiently with the Meisterwerk app

Thanks to the Meisterwerk app, you can plan operations quickly and efficiently.
Thanks to the Meisterwerk app, you can plan operations quickly and efficiently.

Scheduling takes a lot of time? It can be done better: in the Meisterwerk app, you create Jobs and select your employees or teams for individual projects and appointments with just a few clicks. When, where and with whom your staff is scheduled can be seen directly in the craftsman app. Changes are also applied in real-time and can be communicated via direct message.

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