Attracting and retaining top talent, as well as planning, forecasting, and budgeting for personnel, are significant challenges for many organizations. It’s especially difficult when the full scope of HR costs is unknown. The issue is further compounded by the need to adapt financial planning and analysis (FP&A) strategies to account for evolving market trends.
Rather than assessing data in spreadsheets—which come with their own set of challenges—organizations are increasingly turning to enterprise performance management (EPM) software, such as Workday Adaptive Planning. With more efficient software, organizations can plan on having the right people in the right positions at the right time, leading to improved productivity and overall performance.
This article will delve into how EPM software can be a game-changer in overcoming these challenges and driving business success.
What Is Enterprise Performance Management Software?
This software provides robust tools that offer a comprehensive view of HR costs and streamlines data entry and management, empowering organizations to create their own scenario analyses and make informed personnel decisions.
EPM software can help organizations answer questions such as:
- How much is a new hire going to cost me?
- Can I afford to promote this employee?
- How many employees will we need to hire to meet our business goals?
Challenges of Using Spreadsheets for Personnel Planning
Spreadsheets have long been a popular tool for personnel planning, but they’re increasingly being recognized as an inefficient, time consuming, and error-prone solution.
- Error-prone. Adding or updating personnel data increases the risk of errors like typos or incorrect formulas, potentially leading to inaccurate staffing assumptions, decreased productivity, increased costs, and missed opportunities.
- Difficulty to maintain. As an organization grows and more personnel data is added, managing spreadsheets can become challenging, leading to data silos, inconsistencies, and a lack of comprehensive view of personnel planning data.
- Time consuming. Managing spreadsheets can be labor-intensive and time-consuming, diverting resources from critical tasks like strategic planning and decision-making.
- Reporting. The lack of advanced analytics, reporting capabilities, and cross-departmental collaboration in spreadsheets can lead to inefficiencies and delays in reporting requirements.
- Security. Using spreadsheets for personnel planning can compromise data security due to their lack of built-in security features and potential for unauthorized access or data breaches, especially when shared through unsecured channels.
How Enterprise Performance Management Can Help
To address the problems associated with spreadsheet-based personnel planning, you could consider adopting more advanced solutions designed to streamline personnel planning processes and improve collaboration and data sharing.
- Forecasting. EPM software can help organizations forecast future personnel needs and develop contingency plans to address potential staffing shortages or surpluses.
- Budgeting. EPM software provides a centralized data management platform that streamlines budgeting, reduces error risk, provides access to accurate information for all stakeholders, aiding informed decision-making and budget improvement for better efficiency and effectiveness.
- Collaboration. EPM solutions foster collaboration and communication across departments by providing a centralized data management platform, promoting transparency, accountability, and alignment towards shared goals.
- Visibility. EPM software offers real-time visibility into personnel data, facilitating quick, informed decision-making, strategic alignment with financial goals, and identification of trends, patterns, and opportunities not evident in spreadsheets.
- Security. EPM software enhances personnel planning security through robust features, including role-based access controls, ensuring that personnel data is accessible only to authorized users.
How to Create a Scenario Analysis with Enterprise Performance Management
Scenario planning with a cloud-based EPM solution involves creating and testing multiple scenarios related to business performance by defining objectives and identifying variables that could impact them.
Here are some of the steps you could expect to go through.
- Multiple scenarios based on different combinations of variables are created to evaluate potential impacts.
- Assumptions are defined for each variable based on historical data, market research, or expert opinion.
- Results are analyzed using reporting and visualization tools, providing real-time visibility into key performance metrics.
- Organizations can take action to improve their business performance based on the results, such as adjusting their strategy, reallocating resources, or making changes to their operations.
We’re Here to Help
For more information on how EPM software can benefit your organization, contact your Moss Adams professional.