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
Analyze audit/survey results		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