Resource Planning: 13 Tricks and Tips for Using Workforce Benchmarks

Introduction

Effective resource planning is the backbone of any well-run organization. Without a clear understanding of your workforce needs, it can be challenging to allocate resources efficiently, meet demand, and drive productivity.

This is where workforce benchmarks come into play. By comparing your staffing levels, productivity, and costs with industry standards, you can make informed decisions that optimize your resource allocation.

Benchmarking your workforce? Get relevant metrics here

In this blog, we’ll explore 13 tricks and tips to help you make the most of workforce benchmarks for better resource planning. Let’s get started!

1. Identify Key Workforce Metrics

Start by identifying the key metrics that align with your organization’s goals. Common benchmarks include employee productivity, labor costs as a percentage of revenue, and turnover rates. By focusing on these core metrics, you’ll have a clearer picture of where your workforce stands compared to industry standards.

Employee productivity metrics can be cut in many ways, such as:

• Revenue per Function Employee ($M) – Use this for commercial type functions where revenue is a key driver of headcount, such as Sales, Marketing, and Customer Service. Higher revenue per a function employee indicates more efficient employees.
• Function as % of Total Employees – Use this for all other functions where there may be multiple drivers of headcount. This simple percentage will give you a feel for whether functional headcount is heavy or light – For example, a light function is either understaffed or efficient.

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2. Use Industry-Specific Benchmarks

Different industries have different standards, so it's essential to use benchmarks specific to your sector. For example, a benchmark for manufacturing labor costs is unlikely to be applicable for a technology firm. Use industry reports, surveys, or specialized benchmarking services to gather accurate and relevant data.

CompanySights has workforce benchmarking data for 50+ industries, so you can always get relevant data for your industry – Start your search here.

3. Segment Your Workforce for More Accurate Comparisons

Rather than benchmarking your entire workforce as a single unit, break it down into functions. For instance, compare your sales team against industry sales benchmarks, your IT department against technology benchmarks, and so on. This will give you more precise insights into specific areas of your business.

Get detailed employee benchmarks by function here

4. Leverage Benchmarking Tools and Software

To make the benchmarking process more efficient, use specialized software tools that gather, analyze, and report workforce benchmarks. Tools like SAP SuccessFactors, Oracle HCM Cloud, or Workday provide comprehensive workforce analytics that help you stay on top of your own internal data.

The next step is to source external workforce data to compare against your organization against. Consider using third-party data providers like CompanySights, who are specialist provider of workforce benchmarks – Learn more here.

5. Balance Quantitative and Qualitative Data

While quantitative benchmarks like revenue per function employee and turnover rates are important, don’t overlook qualitative data such as employee engagement and job satisfaction. This type of information and insights will provide a balanced perspective when it comes to workforce planning.

To gather qualitative data, we suggest that you engage with your HR team to prepare an employee survey to be circulated with the workforce. Also consider using focus groups, which can be a highly effective way to collate relevant qualitative data in a short period of time.

6. Monitor Labor Costs Relative to Revenue

One of the most critical benchmarks for resource planning is labor cost as a percentage of revenue. Monitoring this ratio helps ensure that you’re not overstaffing or understaffing in specific functions relative to your company’s income. Aim to align with industry standards to maintain profitability while meeting the operational needs of the business.

7. Track Employee Utilization Rates

Employee utilization measures how effectively your workforce is being used. For example, if employees spend only 70% of their time on productive tasks, there’s an opportunity to optimize workloads. Use benchmarks to identify ideal utilization rates for your industry and adjust resource allocation accordingly.

Keep in mind that utilization tracking is commonplace for some industries like Professional Services, but not so common for others. You will need to consider what data you have available and go from there.

8. Incorporate Benchmarks into Forecasting

Workforce benchmarks aren’t just for current state assessments; they can also inform future planning. We recommend incorporating benchmark data into your forecasting models to predict future staffing needs, helping you stay ahead of demand and avoid resource bottlenecks.

All that you need is a target annual revenue figure set by management. Then you can quantify the number of employees required to achieve this target using a relevant revenue per employee benchmark for your industry.

Did you know that you can get company-specific revenue per employee benchmarks for free with CompanySights? Start your search here.

9. Compare Full-Time vs. Part-Time Staffing

Benchmark your ratio of full-time to part-time employees against industry standards. If you’re relying too heavily on full-time staff in an industry where part-time workers are the norm, you may be missing opportunities to reduce labor costs or increase flexibility.

10. Regularly Review and Update Benchmarks

The business landscape is constantly evolving, so your workforce benchmarks should too. Regularly review and update your benchmarks to reflect the latest industry data. Not all external data providers update their workforce data, so it’s important to check this before you use any third-party benchmarks.

At CompanySights we refresh our data annually, so that you know you are always comparing the latest available workforce data. This will ensure that your resource planning remains relevant and effective.

11. Use Benchmarks to Identify Skills Gaps

Benchmarks can help you identify skills gaps within your workforce. Compare your employees' skill levels with industry benchmarks to see where additional training or new hires might be necessary. This will ensure that your team has the capabilities needed to stay competitive.

12. Align Benchmarking with Strategic Goals

Make sure that your benchmarking efforts are aligned with your organization’s broader strategic goals. If your company is focusing on innovation, for example, benchmark your R&D staffing levels against industry leaders to ensure you’re investing enough resources in this area.

13. Foster a Culture of Continuous Improvement

Finally, use workforce benchmarks to foster a culture of continuous improvement. Share benchmarking data with managers and employees to encourage ongoing progress and refinement. By regularly measuring performance against industry standards, your team will be motivated to strive for excellence.

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Conclusion

Workforce benchmarks are a powerful tool for resource planning, helping organizations optimize staffing levels, control costs, and ensure productivity. By leveraging industry-specific data, using the right tools, and aligning benchmarks with strategic goals, you can make smarter decisions that drive organizational success.

Keep in mind that benchmarking is not a one-time exercise. Regularly updating your benchmarks and fostering a culture of continuous improvement will keep your resource planning efforts agile and effective. By applying these 13 tricks and tips, you’ll be well on your way to creating a more efficient and competitive workforce.

Why not start your benchmarking journey with CompanySights today? Learn more about our workforce data here.