How to create an effective human resources allocation model (with examples and instructions)

What is a staff model? Why do you need one? And how do you create an effective staff template? Find out in our beginner’s guide.

A staffing model is a framework that ensures your organization has the right people to meet its operational needs.

It describes the roles, skills and staff ratios required to run your core business, as well as what you’ll do in the event of fluctuations in demand.

Think of it as the ingredients of a recipe. It provides clear indications of the type and number of people required, enabling you to ensure optimal allocation of your organization’s human resources.

Here’s what you need to know to integrate staff modeling into your strategic workforce planning.

What is a staffing model?

A staffing model answers the question “How are we going to staff the company to effectively achieve our strategic and operational objectives?”.

As part of a wider workforce planning process, the ultimate aim of a staffing model is to equip the company with the right people, at the right time and at the right cost.

Creating a staffing model involves examining historical data – and anticipating future needs – to understand the likely demand for staff. This strategic approach enables organizations to maximize the efficiency of their human resources allocation.

From there, you design an optimal personnel structure to guarantee high performance and added value for the company. For example:

• In a predictable business with constant demand, your staffing model might involve allocating a defined number of permanent staff to fixed positions.
• But in a more unstable sector, with seasonal fluctuations in demand, your recruitment model might be different. You might use freelancers or temporary workers at peak times.
• In a project-based organization, your staffing model might involve recruiting specialized experts on a project-by-project basis, enabling efficient allocation of the necessary resources.

You’ll find that the number and profile of candidates aren’t the only important factors: the budgetary aspect is also crucial. Different staffing models use different recruitment processes to recruit staff at the best cost to the company.

And it’s not just about salary. Staffing models also take into account the “hidden” costs of new hires, such as pension contributions, equipment and management fees.

What’s the difference between a staffing model and a staffing plan?

A staffing model and a staffing plan are both key elements of strategic workforce planning, but they are not the same thing.

A staffing model uses various resource forecasting techniques to determine the optimal staffing levels, skill requirements and recruitment preferences for the company: the number of positions required by each department and the best recruitment method. It provides a comprehensive view of the organization’s staffing requirements for success.

A staffing plan is much more detailed. Based on the staffing model, it details the specific activities required to staff the company: recruitment schedules, job descriptions, training, scheduling and rotation planning, succession planning, etc. A staffing plan describes the practicalities of implementing the staffing model through specific recruitment, training and deployment activities.

The importance of efficient resource allocation in companies

Effective personnel management is essential if companies are to achieve their objectives and remain competitive. It ensures a sufficient number of qualified employees to manage fluctuating workloads, deliver quality products and services, and provide excellent customer service.

Strategic personnel management also helps to control costs, minimize turnover and foster a positive working environment.

Benefits of creating a staffing model

The advantages of creating a staffing model are the same as those of workforce planning in general – the main advantage being that there are no nasty surprises that might surprise you.

You’ve taken every aspect of your operations into account, and your staff are planned and prepared for what lies ahead.

However, there are other benefits that contribute to your company’s success. Here are just a few examples of the improvements an effective staffing model can bring to your organization:

Aligning staff with strategy – A staffing model involves forecasting workforce requirements, ensuring that you have the right people, skills and knowledge for the direction you want to take.

Optimize resource allocation – You’re better able to match labor supply to demand, reducing under-utilization and the costs associated with overstaffing.

Managing staff costs – The right staffing model maximizes resource utilization and reduces waste, while saving expenses associated with the wider hiring process.

Improving performance – Having the right people in the right jobs helps you achieve your business objectives and delight your customers.

Retain employees – By taking into account workload, skills development, progression, flexible working, etc., you are more likely to retain your employees.

Adapting to change – An effective staffing model anticipates change and gives you the flexibility to adapt to market conditions according to your needs.

Evolve faster – Some staffing models help you access the specialized expertise and additional resources you need to evolve or propel your business forward.

Who is involved in creating a staffing model?

An effective staffing model relies on the contributions of various company players. It is both top-down, based on a strategy defined by general management, and bottom-up, taking into account the needs of managers and employees on the ground.

The HR department is generally in charge of the process and guides it. It also consults widely with the company to ensure a clear understanding of requirements and to encourage buy-in.

Stakeholders in the staffing model

Executive management – The executive management team defines the organizational objectives that the staffing model is intended to support. It oversees, promotes and guides the project. Their involvement ensures that the staffing model drives the company forward.

Human Resources Department – Your HR professionals develop and implement the staffing model. They coordinate the process and perform technical tasks such as workforce analysis and role definition. In this way, the plan is steered by experienced professionals with the requisite skills.

Department managers – Department managers provide insight into the needs of their teams. They help HR understand operational realities, functions, demand trends, and the key skills and positions required. This effective method ensures that the staffing plan equips teams with the people and skills they need to succeed.

Finance team – Your financial professionals ensure that the staffing model is in line with the organization’s overall financial objectives, and provide budget and cost information to guide the plan. This ensures that staffing decisions are optimized for the organization’s financial reality.

Employees – Each member of staff contributes to staff modelling by providing insight into the employee experience, such as workload and work-life balance, staff sentiment, skills needs, and so on. This helps create a plan that supports staff retention and satisfaction objectives.

As with most business activities, consultation and collaboration produce the best results. Taking into account a wide range of professional opinions, from the board of directors to the production team, ensures that your workforce management model matches current needs and future ambitions.

Seven examples of common staffing models

The precise details of your staffing model will depend on the nature of your business, your ambitions and the constraints you face. However, there are different types of staffing models. Here’s a brief overview.

(Note that it’s unlikely that you’ll choose one of these immediately and use it exclusively. Most staffing plans are a hybrid of these approaches, reflecting the complexity and ambitions of the business at the time).

1. Fixed staffing model

With this approach, the number of employees is constant throughout the year. There may be losses or gains due to natural turnover. However, no major changes reflect fluctuations in workload, such as seasonal variations in demand.

Advantages – It’s predictable, making it ideal for companies with constant demand.

Disadvantages – You risk over- or under-utilization if the workload fluctuates.

2. Variable staffing model

In this staffing model, the size of your workforce varies according to demand. When demand is higher, you recruit more. This may be due to known seasonal fluctuations or a market upturn.

Advantages – Allows you to match your workforce to the work available, avoiding under-utilization and wastage

Disadvantages – Using additional temporary workers on a short-term basis can lead to higher costs.

3. Hybrid staffing model

As you can imagine, this model combines elements of fixed and variable staffing. You have a core team to cover the standard workload, but also a team of contractors you can rely on at peak times. This offers a balance between stability and agility.

Benefits: Enables scalability during peak periods without the need for full-time staff, thus helping to manage costs.

Disadvantages – Requires careful management and can lead to a lack of cohesion within teams.

4. Lean staffing model

A lean staffing model aims to maximize workforce efficiency and minimize overcapacity. You work with a minimal number of employees, but optimize their flexibility and utilization rates through cross-training and active resource management, allowing staff to take on multiple roles and moving them between them as needed.

Benefits – A cost-effective way to cover your core business operations

Disadvantages – Requires careful workforce planning and resource allocation to ensure appropriate workloads

5. Outsourced or external staffing model

In this staffing model, you retain a core internal workforce, but supplement it with specialist expertise from external providers. For example, an organization can outsource certain specialized tasks to service providers capable of handling the work efficiently.

Advantages – Access to specialized expertise and flexibility to meet changing demand

Disadvantages – Sourcing, integrating and retaining external suppliers adds a layer of complexity

6. Project-based staffing model

This approach involves recruiting employees or external service providers on a project-by-project basis. It enables companies to respond precisely to demand for labor, but entails risks associated with planning and estimating. Project managers play a crucial role in managing this approach.

Advantages – You have exactly the number of employees you need to complete the available work, thus reducing waste.

Disadvantages – Requires strong project planning, resource forecasting and management skills to maintain project and employee alignment.

7. Staff increase or contingent staffing model

The staffing model consists of supplementing the permanent workforce with temporary hires, made for a specific assignment. This is often done through agencies (which handle sourcing, administration, etc.) or freelancers.

Advantages – You can quickly increase or reduce your workforce according to demand.

Disadvantages – Temporary staff can take time to integrate and get up to speed.

How to create a strategic staffing model in 8 easy steps

Below are the essential steps you need to follow to create a staffing template for your company.

Several qualitative and quantitative techniques are required, and your HR team needs to have the analytical skills and experience required.

1. Involve stakeholders and define business needs

Contact your key stakeholders to start gathering information about your staffing model and to begin the process of getting their buy-in.

In consultation with your management team, get a clear understanding of your organization’s short- and long-term objectives, especially any changes in the coming year, such as mergers and acquisitions or growth targets.

Talk to department managers to understand day-to-day operational needs, including any staff or skills shortages. Think about the workforce planning indicators you need to track and analyze.

2. Look back and analyze historical data

Examine historical data on staffing levels, workload, business cycles/seasonality and performance to identify patterns and trends.

This analysis will help you understand staffing requirements during peak and off-peak periods, as well as areas of inefficiency or overstaffing. This practical approach will help you improve the efficiency of your processes.

3. Anticipate future workloads

Building on what you’ve learned in steps 1 and 2, start forecasting future staffing requirements. Possible techniques include time-series analysis, statistical regression analysis, trend analysis and fixed-ratio planning. Your HR department needs to master these basic principles.

Take into account factors such as anticipated changes in customer demand, new projects or initiatives, and market trends. This method enables organizations to make strategic decisions based on reliable data.

4. Define resource allocation ratios

Determine the ideal staffing ratios for each department or function, based on your workload forecasts and performance targets. This step enables you to allocate available resources efficiently. For example, you may need a certain number of :

• Customer service representatives to respond to customer requests
• Production workers per production unit in the manufacturing industry
• Project managers per project team
• Technical specialists for several simultaneous projects

5. Developing different scenarios

Based on your workload forecasts and staffing ratios, develop different staffing scenarios to determine optimal staffing levels and skill mix.

Consider different scenarios for different business conditions, such as fluctuating workloads, the integration of new projects and how you’ll manage staff.

This can include cross-training employees to make them more flexible, hiring temporary staff or using overtime. This approach helps streamline processes and focus efforts on strategic priorities.

6. Assess your current workforce

Assess your current workforce against your new model and determine whether you have the number, type or roles and mix of skills required to meet your future needs. Identify gaps or redundancies in your workforce.

If there are gaps, you’ll need to adopt a strategy to fill them. For example, hire new staff, develop existing staff, retrain people in redundant (under-utilized) positions, contact former candidates when vacancies arise, etc.

This assessment helps to optimize the use of resources and ensure the effective distribution of talent within the organization.

7. Think risk and retention

Your staffing model can’t assume that positions will be easy to fill or that you’ll always retain key personnel.

Take into account risks that could have an impact on staff, such as staff turnover, economic fluctuations or changes in industry regulations. Develop contingency plans to mitigate these risks and ensure business continuity.

You should also think about making your workplace attractive to your employees, to encourage their loyalty. Retaining staff is less costly and less disruptive than turnover and recruitment. Focus on employee retention to control costs and guarantee project success.

8. Implement, monitor and adjust

Implement your new staffing model, monitor its performance and make any necessary adjustments.

Remember the historical data you consulted earlier. Review the statistics after implementing your new staffing model. Has it had a positive impact?

Regularly review your staffing levels, workload forecasts and performance indicators to ensure that your staffing plan remains aligned with your business objectives. This ongoing monitoring helps optimize efficiency and ensure optimal resource allocation.

How technology can help you create a better staffing model

Technology is extremely valuable in creating a staffing model: from data analysis and AI-assisted forecasting to scenario planning and resource planning. Here are three workforce planning tools to consider when planning your staffing model and managing your resources in general.

Data and analysis tools

Analysis tools enable you to analyze large volumes of data and obtain actionable information. For workforce planning, these tools can be useful for :

• Analyze historical data to identify patterns, trends and seasonality
• Use AI and predictive modeling to forecast future demand based on project pipeline, customer demand and market trends
• Visualize staffing data via dashboards and reports, facilitating communication with stakeholders and securing much-needed buy-in

Companies can use sophisticated algorithms to optimize resource allocation decisions and improve overall organizational efficiency.

Resource management software

Resource management software centralizes your workforce data and helps managers to easily identify and allocate resources within the company. For workforce planning, this software can :

• Provide historical personnel, team and project performance data (e.g. skills, resource capacity and utilization) to assess whether the current workforce has the right people in the right place
• Provide a rapid visualization of capacity, based on your project pipeline, to help you forecast future resource demand
• Support scenario planning and scenario analysis, for data-driven decision-making and agility in response to changing circumstances
• Enable managers to plan resources and see the impact on capacity and utilization in real time

HR software

HR software fulfills many functions within a company. They can be used to create an efficient personnel management model:

• Track employee performance indicators and provide information on individual and collective productivity. This enables you to assess the effectiveness of your current staffing approach.
• Provide information on staff numbers, skills, qualifications, etc., which is essential when assessing your current workforce.
• Support downstream processes if and when you need to recruit and integrate new employees

Using one of these tools can make your personnel model more accurate and efficient, providing data for your analysis and decision-making process.

Create your best staffing model with Teambook

Teambook is a resource management software trusted by hundreds of professional services and project companies worldwide.

Marketing agencies, consulting firms, construction companies and many others use Teambook to analyze their resource requirements, design staffing models and allocate resources efficiently.

Teambook enables organizations to maximize the use of their available resources, reduce waste and optimize the efficiency of their human resource allocation. Thanks to its advanced functionalities, companies can make strategic decisions based on concrete data, and significantly improve their operational performance.

If you’d rather get hands-on, explore Teambook free for 30 days and discover how this solution can transform your approach to resource management.

No credit card or commitment required. Simply register with your e-mail address and start optimizing your staffing model today.