Workforce Planning is the process of analyzing, forecasting and aligning an organization’s current and future staffing needs with its strategic objectives. This includes activities such as determining the number of employees needed to do a job, the necessary skills and competencies for success, and the best recruiting sources. It also involves looking at crucial factors like budget constraints, technology developments and cultural dynamics.

Headcount Planning typically refers to the practice of managing the size of an organization’s workforce. This can involve both hiring new staff, and releasing existing employees when necessary. Headcount planning focuses on key metrics such as employee turnover rate, cost per hire, and average time-to-fill in order to plan for future changes in staff size. By doing so, organizations can better optimize their resources and ensure they have the right skillsets at the right times.