BPI Workforce Numbers and Cost – Examples
The following example demonstrates how to estimate the Workforce Numbers using the Human Resource Planning Model Technique. It was used to help a large public sector organization calculate the costs of delivering human resource management services according to the proposed 'To-Be' processes.
Process Costing Estimates
Working Assumptions
- The estimates provided in this document have been made for headquarters only. However, it is assumed that these estimates could be extrapolated to establish overall costs for HR management across the organization.
- The estimates have been made for the processes that were redesigned within the scope of this project only. These costs therefore do not represent the total costs for HR management. For an overall picture, costs associated with other processes (e.g., staff relations) should be factored in. As well, an additional 15% could be added to factor in administrative support as well as supervisory/management requirements.
- The estimates include management of both civilian and military personnel.
- The number of managers within this group involved in the HR processes have been estimated as follows:
- 1 Deputy
- 7 Senior Directors
- 41 Directors
- 220 Managers
- Estimates for volume of HR transactions are based on historical statistics but adjusted to reflect future environment (e.g., downsized Group). Estimates for level of effort required by HR service provider and line manager are based on "best guess" estimates of end-state taking into consideration technology and efficiency improvements of new processes.
- The costs are not presented in terms of dollars but in terms of full time equivalences (FTEs). A dollar estimation could be derived by applying an average salary amount to the FTE total. One FTE is considered to be equivalent to 190 days based on the following assumptions:
- Total work days: 260
- Sick leave: (5)
- Vacation: (15)
- Statutory holidays: (10)
- Net available days: 230
- Training: (5)
- Administration at 10% (23)
- Indirect time at 5% (12)
- Net productive days (190)
- 1 day is equivalent to 7.5 hours of work.
- Estimates have been based on an optimum level of service being provided to the manager (i.e., minimum input by managers and high-degree of reliance on support from HR service provider).
- No distinction has been made as to "who" will provide the HR services (i.e., compensation/benefits specialists or HR generalists reporting directly to the line organizations).See Roles and Responsibilities table for a further breakdown.
Costing summary
Redesigned process
|
Level of effort
| |||
HR service provider
|
Line Manager
| |||
Total days
|
FTE
|
Total days
|
FTE
| |
Plan Human Resources
|
241 days
|
1.5
|
606 days
|
3
|
Manage Vacancies
|
879 days
|
4.5
|
1417 days
|
7.5
|
Manage individual performance
|
105 days
|
0.5
|
33323 days
|
175
|
Train workforce
|
2860 days
|
15
|
1625 days
|
8.5
|
Create/Modify organization structure and classify positions
|
590 days
|
3
|
421 days
|
2
|
Total:
|
4675 days
|
24.5 FTE
|
37392 days
|
196 FTE
|
Note1: Comparison with the baseline costs are difficult to established since the team that looked at the As-is processes did not determine the specific costs of each HR process. Only an overall cost of HR service delivery was established. This cost was established at ~160 FTEs (April baseline). The cost included field units and excluded temporary project-dedicated resources.
Note 2: The baseline cost of line management involvement (for As-is HR process) was not established. While the projected estimate of 196 FTEs is high, it is felt that it is probably not higher than what is currently expended, since line managers currently spend a significant proportion of their time on HR management.
Detailed costing estimates
Redesigned process
|
Transaction volume / year
|
Level of effort
| ||||
HR service provider
|
Line manager
| |||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| |||
1.0 Plan Human Resources
| ||||||
1.1 Interpret/establish strategic direction
- AOM & DILP
- DMPol & Mgnt
- Other direct reports to AOM
|
Once a year
|
80% of line mgnt effort
|
4.5
|
0.5 day each
0.5 day each
0.5 day each
|
1
.5
3
| |
1.2 Analyze strategic/operational requirements and translate into HR requirements
- AOM & DILP
- DMPol & Mgnt
- Other direct reports to ADM
|
100% of line effort
|
9
|
.25 day each
2 days each
1 day each
|
0.5
2
6
| ||
1.3 Analyze gap
- AOM
- each Senior Director and Directors
- each Manager
|
33% of line mgnt effort
|
31
|
1day
1 day each
1.5 hour each
|
1
48
44
| ||
1.4 Review external environment
- DMPol & Mgnt
- Other direct reports to AOM
|
100% of line mgnt effort
|
11
|
4 days in total
1 day each
|
4
7
| ||
1.5 Generate, evaluate & select strategies
- AOM
- each Senior Director and Director
- each Manager
|
33.3% of line mgnt effort
|
78
|
3 days
3 days each
3 hours each
|
3
144
88
| ||
1.6 Develop HR plan and incorporate in BP
- AOM
- each Senior Director and Director
- each Manager
|
33.3% of line mgnt effort
|
78
|
3 days
3 days each
3 hours each
|
3
144
88
| ||
1.7 Monitor and report on process performance
- Conduct audits/surveys
- Analyze audit/survey results
- Recommend corrective options
- Implement changes
- Respond to queries
- Produce reports
|
1 audit/ survey
|
5 days
5 days
5 days
5 days
10 days
5 days
|
5
5
5
10
5
|
1 hour each (10% of mgrs surveyed)
n/a
n/a
minimal
n/a
n/a
|
6
n/a
n/a
min
n/a
n/a
| |
Total days days 593 days
Total FTEs 1.5 FTE 3.0 FTEs
| ||||||
Detailed costing estimates
Redesigned process
|
Transaction volume per year
|
Level of effort
| |||
HR service provider
|
Line manager
| ||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| ||
2.0 Manage vacancies
| |||||
2.1 Review options determine course of action
|
760 staffing transactions
|
80% of line mgnt effort
|
20
|
15 min (on average)
|
25
|
2.2a Select staff through deployment
- Notify staff
- Identify potential candidates
- Determineassessment criteria
- Assess candidates
- Do reference checks
|
200 deployments
|
30% of line mgnt effort
|
48
|
15 min
0.5 hour
2 hours
3 hours
15 min
|
7
13
53
80
7
160
|
2.2b Select staff without competition(including priority appointments)
- Determine assessment criteria
- Obtain referrals
- Assess candidates
- Document rationale
- Obtain clearance
|
120 staffing without competitions
|
50% of line mgnt effort
|
114
|
4 hours
0.5 hour
1day
2 hours
15 min
|
64
8
120
32
4
228
|
2.2c Select staff through competition
- Obtain priority clearance
|
100 staffing through competition
|
50% of line mgnt effort
|
400
|
15 min
|
3
|
- Search for interested candidates/advertize
|
1 day
|
100
| |||
- Prepare assessment criteria/selection tools
|
1 day
|
100
| |||
- Review applications
|
1 day
|
100
| |||
- Administer tests
- Interview canditates and priorize
- Conduct reference checks
|
1 day
3 days
1 day
|
100
300
100
800
| |||
2.2d Select staff to meet short-term reqts
- Obtain list of candidates
- Create assessment criteria
- Evaluate candidates
|
340
|
20% of line mgnt effort
|
14
|
0.5 hour
0.5 hour
0.5 hour
|
23
23
23
|
Detailed costing estimates
Redesigned process
|
Transaction volume per year
|
Level of effort
| |||
HR service provider
|
Line manager
| ||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| ||
2.0 Manage vacancies (cont'd)
| |||||
2.3 Appoint and/or finalize action
- Request security and/or medical clearance
|
570 (75% of total actions)
|
1 hour (80% of actions)
|
60
|
1 hour (20% of actions)
|
15
|
- Request second language evaluation
|
same
|
same
|
60
|
same
|
15
|
- .Publish results/debrief
| |||||
- Prepare appeal/complaint notice
|
400
|
15 min (20% of notices)
|
3
|
15 min
(80%of notices)
|
11
|
- Defend appeal/deal with complaint
|
20 appeals
|
5 days
|
100
|
3 days
|
60
|
- Do letter of agreement / appointment
|
760 actions
|
15 min
|
25
|
15 min
|
25
|
2.4 Monitor and report on process performance
- Conduct audits/surveys
|
1 audit
|
5 days
|
5
|
a hour (10 of mgrs surveyed)
|
6
|
|
5 days
|
5
|
n/a
|
n/a
| |
- Recommend corrective options
- Implement changes
- Respond to queries
- Produce reports
|
5 days
5 days
10 days
5 days
|
5
5
10
5
|
n/a
minimal
n/a
n/a
|
n/a
min
n/a
n/a
| |
Total days 879 days 1417days
Total FTEs 4.5 FTEs 7.5FTEs
| |||||
Detailed costing estimates
Redesigned process
|
Transaction volume per year
|
Level of effort
| ||||
HR service provider
|
Line manager
| |||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| |||
3.1Determine individual performance expectations
-Determine expectation
-Determine measurement criteria
|
1677
|
n/a
n/a
|
n/a
n/a
|
1 day each
1 day each
|
1677
1677
| |
3.2 Monitor performance and provide feedback periodically
- Making adjustments in expectations in response to changes in business plan
|
1677
|
n/a
n/a
|
n/a
n/a
|
2 hours per week
0.5 hour per wk
|
23254
5813.6
| |
3.3 Recognize accomplishments & celebrate achievements
|
84
(5% of employees)
|
1 hour
|
12
|
2 hours
|
22.4
| |
3.4 Counsel & implement corrective action
- Identify deficiencies & evaluate options
- Counsel and take corrective action
|
34 (2% of employees)
|
1 day
n/a
|
34
n/a
|
4 hours
1 day
|
18
34
| |
3.5 Document performance evaluation
- Identify training & dev't recommendations
- Senior Mgnt Board reviews
- Junior Mgnt Board review
|
1677
|
1 hr (on10%)
n/a
n/a
n/a
|
24
n/a
n/a
n/a
|
2 hours
1 hour
1.5 days
3 days
|
447
224
12
144
| |
3.6 Monitor and report on process performance
- Conduct audits/surveys
- Analyze audit/survey results
Recommend corrective options
Implement changes
- Respond to queries
- Produce reports
|
1 survey
(10% of employees)
|
5 days
5 days
5 days
5 days
10 days
5 days
|
5
5
5
5
10
5
|
n/a
n/a
minimal
minimal
n/a
n/a
|
n/a
n/a
min.
min.
n/a
n/a
| |
Total days 105 days 33323d
Total FTEs 0.5 FTE 175 FTE
| ||||||
Detailed costing estimates
Redesigned process
|
Transaction volume per year
|
Level of effort
| |||
HR service provider
|
Line manager
| ||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| ||
4.0 Train workforce
| |||||
4.1 Determine training objectives
- 1st yr: (50% of employees)
- 2nd yr: (25%)
- 3rd yr: (20%)
- 4th yr: (10%)
- 5th yr: (4%)
|
Yr 1: 839
Yr 2: 419
Yr 3: 335
Yr 4: 168
Yr 5: 67
Total: 1828 objectives
|
0.5 hr (on 20% of transactions)
|
24
|
\1 hour
|
261
|
4.2 Develop draft training plan
- Select option and cost
- Review/prioritize plan (49 managers)
|
1828
1 plan
|
0.5 hr (on 50% of transactions)
n/a
|
61
n/a
|
1 hour
4 hours
|
244
28
|
4.3 Develop implementation strategy
- Develop implementation plan
- Draft on the job training program
- Anticipate future training needs
- Design/contract course dev't
- Negotiate/manage bulk contracts-Yr 1
- Draft nominations for PTC/DMA
request seats
develop substantiations
submit nominations
|
Once per yr
84 (10% of cases)
25 courses
25 contracts
10
10
10
|
10 days
1 day each
30 days total
95 days each
5 days each 0.2 hour
4 hours
0.1 hour
|
10
84
30 2390
125
minimal
5 days minimal
|
n/a
5 day
n/a
n/a
5 days
n/a
4 hrs
n/a
|
500
420
n/a
n/a
125
n/a
5days
n/a
|
Detailed costing estimates (continued)
Redesigned process
|
Transaction volume per year
|
Level of effort
| |||
HR service provider
|
Line manager
| ||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| ||
4.0 Train workforce (cont'd)
| |||||
4.4 Schedule training activity
- Register employees on courses
- Provide course loading info to employees
|
839 courses
839 course
|
0.2 hour
0.1hour
|
22
11
|
n/a
n/a
|
n/a
n/a
|
4.5 Attend courses and complete on the job training program
- Initiate payment for courses
|
839 courses
|
0.1 hour
|
10
|
n/a
|
n/a
|
4.6 Evaluate training activities (level of effort of HR provided on internally designed courses only)
|
50 internal courses
|
n/a
|
n/a
| ||
4.7 Validate training activities
- Complete validations
- Review validations (level of effort of HR provided on internally designed courses only)
|
629 courses (75%)
50 internal courses
|
n/a
1
|
n/a
50
|
0.5 hour
n/a
|
42
n/a
|
4.8 Monitor and report on process performance
- Compare plan to actual
- Conduct audits/surveys
- Analyze audit/survey results
- Recommend corrective options
- Implement changes
- Respond to queries
- Produce reports
|
12 times/yr
1 survey
(10% of employees)
|
2 hours
5 days
5 days
5 days
5 days
10 days
5 days
|
3
5
5
5
5
10
5
|
n/a
n/a
n/a
minimal
minimal
n/a
n/a
|
n/a
n/a
n/a
minimal
minimal
n/a
n/a
|
Total days 2860 days 1625d
Total FTEs 15 FTE 8.5 FTE
| |||||
Detailed costing estimates
Redesigned Process
|
Transaction volume per year
|
Level of effort
| |||
HR service provider
|
Line manager
| ||||
Unit of measure
|
Total days
|
Unit of measure
|
Total days
| ||
5.0 Create/modify org structure and classify positions
| |||||
5.1 Develop organization model
|
20 new org models
|
10 days each
|
200
|
2 days each
|
40
|
5.2 Search for organizational offsets
|
250 search
|
0.5 hour
|
125
| ||
5.3 Develop new work descriptions
|
100 new WD
|
2 days each
|
200
|
2 days
|
200
|
5.4 Determine level, rank/MOC
|
100 new WD
|
1.5 days each
|
150
|
n/a (with current class. system)
|
n/a
|
5.5 Select generic work description
|
150 generic WD
|
15 min
|
5
|
1hour
|
20
|
5.6 Determine cost of modified org structure
|
20 new org models
|
n/a
|
n/a
|
1 hour
|
20
|
5.7 Obtain adjustment to resource allocation
|
TBD
|
n/a
|
n/a
|
TBD
|
TBD
|
5.8 Finalize org design/record class. decision
- Determine linguistic profile of new pos.
|
250 pos
|
minimal
|
min.
|
0.5 hour
|
10
|
5.9 Monitor and report on process performance
- Conduct audits/surveys
- Analyze audit/survey results
- Recommend corrective options
- Implement changes
- Respond to queries
- Produce reports
|
1survey per yr
1survey per yr
(10% of employees)
|
5 days
5 days
5 days
5 days
10 days
5 days
|
5
5
5
5
10
5
|
1 hour
n/a
minimal
minimal
n/a
n/a
|
6
n/a
min.
min
n/a
n/a
|
Total days 590 days 421 days
Total FTEs 3 FTEs 2 FTEs
| |||||
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