Unit of competency details

BSBHRM504A - Manage workforce planning (Release 1)


Usage recommendation:
Is superseded by BSBHRM513A - Manage workforce planningRevised and updated unit description. Amended wording of element 1. Added new performance criteria at elements 2 and 3. Rewritten and clarified performance criteria. Expanded and updated required skills and knowledge sections. Expanded and updated range statement. Updated and clarified critical aspects for assessment and evidence in the Evidence Guide. 17/Mar/2013

ReleaseRelease date
1 1 (this release) 10/Mar/2009

Training packages that include this unit


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080303 Human Resource Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080303 Human Resource Management  25/Jul/2008 
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Modification History

Not applicable.

Unit Descriptor

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to plan workforce strategies to achieve organisational goals and objectives.

It includes aligning workforce objectives with business plans, analysing labour market trends and predictions, and designing strategies and succession plans to ensure a competent and appropriately diverse workforce is available to meet anticipated changes.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the Unit

Application of the unit 

This unit applies to human resources managers or staff who take a role in a policy or planning unit with a focus on workforce planning. Typically this work would occur in larger organisations where supply of skilled labour needs special attention.

The unit covers the research associated with labour markets and the requirement to match organisational needs with employee skill and commitment.

Licensing/Regulatory Information

Not applicable.


Prerequisite units 

Employability Skills Information

Employability skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria



1. Assess supply and demand

1.1. Review business plans  to determine predicted areas of organisational growth and downsizing and associated labour requirements

1.2. Analyse existing workforce to determine areas where there are excesses or shortages

1.3. Review organisational requirements for diversity  in the workforce

1.4. Analyse current workforce's capacity to meet current and predicted demands for business goods and services

1.5. Consider existing organisational structure and its strengths and shortcomings in relation to foreseeable changes

1.6. Research and review current and predicted external labour supply data , and demographic and economic data, to forecast human resources supply

1.7. Review staffing budgets to predict cost of workforce changes

2. Develop workforce objectives and strategies

2.1. Establish objectives  for the modification to or retention of the workforce

2.2. Define objectives to address areas with unacceptably high staff turnover

2.3. Define objectives to retain required skilled labour

2.4. Define strategies to source skilled labour

2.5. Communicate objectives and rationale to relevant stakeholders

2.6. Obtain agreement and endorsement for objectives and establish targets

2.7. Develop contingency plans to cope with extreme situations

3. Implement initiatives to support workforce planning objectives

3.1. Implement action to support agreed objectives for recruitment, training, redeployment and redundancy

3.2. Develop and implement strategies to assist workforce to deal with organisational change

3.3. Implement succession planning  system to ensure desirable workers are developed and retained

3.4. Implement programs to ensure workplace is an employer of choice

4. Monitor and evaluate workforce trends

4.1. Review workforce plan against patterns in exiting employee and workforce changes

4.2. Monitor labour supply trends for areas of over- or under-supply in the external environment

4.3. Monitor effects of labour trends on demand for labour

4.4. Survey organisational climate  to gauge worker satisfaction

4.5. Refine objectives and strategies in response to internal and external changes and make recommendations in response to global trends or incidents

4.6. Regularly review government policy on labour demand and supply

4.7. Evaluate effectiveness of change processes against agreed objectives

Required Skills and Knowledge


This section describes the skills and knowledge required for this unit.

Required skills 

  • communication and leadership skills to explain the need for change and to gain support for change
  • literacy skills to read and write reports and succinct workforce plans
  • mathematical skills to work with data and predictions about labour supply information
  • analytical skills to review data according to the needs of the organisation.

Required knowledge 

  • current information about labour supply that is relevant to the specific industry or skill requirements for the organisation
  • industrial relations relevant to the specific industry
  • labour force analysis and forecasting techniques.

Evidence Guide


The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

  • development of a workforce plan which includes relevant research and specific strategies to ensure access to a skilled workforce
  • knowledge of labour demand and supply relevant to the specific industry or skill requirements for the organisation.

Context of and specific resources for assessment 

Assessment must ensure:

  • access to appropriate documentation and resources normally used in the workplace.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

  • assessment of written reports on labour supply trends and strategies to access and retain labour with required skills
  • direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
  • review of documentation outlining agreed objectivesfor the modification to or retention of the workforce and how these objectives were communicated to senior management
  • review of strategies implemented to assist the workforce to deal with organisational change
  • evaluation of implementation of succession planning system
  • review of the results of the organisational climate survey
  • oral or written questioning to assess knowledge of industrial relations relevant to the specific industry.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

  • other units from the Diploma of Human Resource Management.

Range Statement


The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Business plans  may also include:

  • strategic or operational plans

Diversity  may include all kinds of differences the workforce, including:

  • age
  • cultural or linguistic background
  • gender
  • race
  • religious beliefs
  • sexuality

Data  may include:

  • ABS statistics
  • data on numbers of graduates or places in universities or the vocational education and training system
  • information from industry journals or professional associations
  • research reports

Objectives  may include:

  • becoming an employer of choice
  • specific objectives for the organisation on recruitment, training, redeployment and redundancy
  • triple bottom line

Succession planning  refers to:

  • processes that ensure that preferred staff will stay with the organisation

Organisational climate  surveys may include:

  • employee opinion surveys
  • employee satisfaction surveys
  • systems for checking how staff perceive the organisation and its functioning

Unit Sector(s)

Unit sector 

Competency field

Competency field 

Workforce Development - Human Resource Management

Co-requisite units

Co-requisite units