Description
The headcount planning process is undertaken by companies to ensure that their employees and overall organizational structure fit into the overall company goals, specifically within the assigned budget limits. This process helps in ensuring that a company has the right number of people, at the right cost, and the right skills to execute the organization's strategy.
Example
Runn, Paymo, Quinyx, Planday, Workday
Why it matters
The headcount planning process is important as it allows the company's management to understand how much they are paying for labor since it is one of the major expense line items in company financials. Connecting headcount planning to the overall financial planning and analysis (FP&A) process allows companies to align talent management with business goals.