Poor planning returns poor results. In a company where the workforce is unprepared to meet shifting business needs, organizational performance can drop by as much as 26 percentage points, Gartner found in 2024. Human resources is responsible for delivering a workforce fit to meet the firm’s goals–no matter how fickle–so when business leaders plan poorly, or plan alone, HR teams struggle.

John Bernatovicz is the founder of human capital management platform Willory and the author of HR Like a Boss: Your Guide to Amazingly Awesome HR. He believes the buck doesn’t stop with HR or talent acquisition; the business plan is a shared responsibility. “If you don’t feel like your company is effective in annual planning, look no further than your CEO, your board, or other key executives responsible for driving that critical business function,” he said during a From Day One webinar on how to become a strategic HR partner in your global annual business planning. Most executives have a vision for the future of the company, but many fail to consider how their workforce will get them there.

Just 32% of talent acquisition leaders feel like strategic partners to their organization, according to 2024 research from the Josh Bersin Co. Business leaders that consider workforce planning immaterial are an acute frustration for TA.

Human capital has always been a vital business asset, so why is now the time for HR to insist on having a place in annual planning? According to Sofia Moll, head of global talent management at HiBob, the effects of the pandemic continue to linger over working models, still influencing where and how talent is found. Employee expectations have also shifted, not just regarding compensation and benefits, but also career trajectories and skill development. Further, artificial intelligence is already coloring the skills employees are developing–and setting new standards for productivity.

Becoming a Strategic Partner in Annual Planning

Earning a place in annual planning requires human resources people to think like business people, panelists agreed. HR may not think in numbers or spreadsheets, but executives certainly do, Bernatovicz says. Unless talent acquisition learns to link workers to revenue and teach executives to do the same, they won’t prove their relevance. “I see oftentimes that companies look at the bottom of the P&L first, not realizing that profit is an outcome of a number of unique things that are going to happen and run effectively in a strategic manner.”

“They need that data to understand where you’re coming from,” said Lane McFarland, senior director of talent management at data intelligence company Flashpoint. “Maybe the finance team just needs to hear the cost savings initiatives or the vacancy savings during the hiring period. Maybe the CEO just needs to know how many [positions] you’ve fulfilled by department.”

Strategic thinkers ask good questions and answer them. Know the short-term and long-term business goals–and whether you have the workforce to achieve them, McFarland said. Inventory the skills of your team and find the gaps. If you don’t have what you need, can you develop those skills, or should you hire from the outside? Consider potential labor market shifts and how they might bump up against those plans. Could overall market swings change the business needs in the coming year? What are the consequences of hiring now versus later? What are the risks of over-hiring? What happens when you overload a manager and it pushes them out the door? If you hire in less expensive markets to save money, can you properly support those employees? What about regulatory requirements? Business leaders rely on their HR partners to inform them on the labor market and advise on how it will help or hinder achieving business goals.

It’s not enough to be only a dollars-and-cents business contributor: Trust and influence are ultimately won through relationships. Start with the business leaders you already know, said Moll. That might be the sales director or head of content marketing. “Just get on their calendar for 15 minutes or 20 minutes every other week or every month to talk about what they care about,” she said. “Start learning about their business: What are the metrics that they are looking at? What are the pain points they’re experiencing?”

Bernatovicz recommended starting with the finance team in particular. “Develop a relationship with [the finance practitioner] at whatever level you’re at, so if you’re the head of HR, then that’s the CFO. If you’re a manager, then find a manager. Get to know them as individuals, what makes them tick, why they’re working at the company, what they do outside of work.”

As you embed yourself with your business counterparts, track the impact of decisions made about the workforce and provide regular updates, Moll advised. Know your time to hire and turnover, the cost of recruiting versus training versus internal moves, the success rate of onboarding, and how long it takes. Then involve business teams in your work, inviting them to work alongside you in investigating turnover rates, pipeline problems, or onboarding results.

Be a helper and be a problem-solver, said McFarland. “Even if your team is split up between a people experience side and a talent side, talent acquisition specialists can be the ear for another team member, even if they just need someone to vent to or help them through difficulty or bounce an idea off of.”

“They have to first see you as a partner that they can trust,” Moll said. “That takes time, and that means building relationships a little bit at a time, and that means maybe not participating in workforce planning this year, but you’re building to be part of it the next one.” The good news, McFarland noted, is that the relationship between HR and business is already becoming more strategic, and the direction of travel is positive.

“Workforce planning is a tool, not a result. It’s not about having the perfect plan. That doesn’t exist,” Moll said. A plan is a guide. When you have a guide, you can adapt when things change. And things will always change.

Editor's note: From Day One thanks our partner, HiBob, for sponsoring this webinar. 

Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.