How far can a business grow without the right team? This is precisely why identifying human resources needs must be viewed as a strategy, not just an administrative step in recruitment.
In reality, many companies in Vietnam are struggling with a critical challenge: workforce planning that doesn’t align with actual business needs—resulting in either a shortage of key skills or an excess of unnecessary positions. A 2022 McKinsey report revealed that companies with structured recruitment demand analysis are 25% more likely to achieve higher business performance compared to those that hire reactively.
In a fiercely competitive environment for talent, an effective human resources planning strategy not only helps reduce costs but also ensures the company stays ahead of competitors. This article offers a comprehensive guide along with modern tools like Hire Central, an AI-powered ATS platform that helps Vietnamese businesses take a more proactive approach to workforce forecasting and talent management.
Importance of Determining Human Resources Needs
In today’s market, accurately identifying workforce needs is a key factor in the success of Vietnamese businesses.
The Importance of Identifying Workforce Needs
Impact on Business Performance and Growth
In today’s dynamic business landscape, identifying workforce needs is not just an HR function — it’s a core component of strategic workforce planning. According to Deloitte (2024) and Petro Times (the Journal of the Vietnam Oil and Gas Association), businesses with well-structured workforce planning strategies achieve profit growth up to 25% faster than their competitors.
Accurate forecasting ensures that the right teams are in place to support business objectives — from market expansion and new product launches to enhancing customer experience.
Challenges of Poor Workforce Planning
On the other hand, without proper workforce planning, businesses often face:
- A surplus of staff in low-impact areas but shortages in critical roles.
- Rising recruitment costs due to rushed or mismatched hiring.
- Difficulty retaining talent because of unclear career development paths.
A survey by VnExpress revealed that 62% of Vietnamese businesses struggle with workforce forecasting, resulting in inefficient recruitment and wasted budgets.
Learn more:
- Recruitment Process Flowchart, Detailed Guide and Template
- The trend in Using AI in Human Resource Recruitment for Businesses
Effective Methods for Workforce Demand Analysis
To accurately determine workforce needs, businesses should adopt a systematic approach — starting from assessing the current situation, forecasting future demands, and identifying the gaps that need to be filled.
Effective Workforce Demand Analysis Methods
Assessing Current Workforce Status
Businesses should begin by conducting a comprehensive analysis of their existing workforce structure:
- How many employees are currently working in key departments, and is the distribution reasonable?
- What is the retention rate over the past 12 months? Are there departments with unusually high turnover rates?
- Which skills are oversupplied, and which are in shortage? For example, a company may have plenty of administrative staff but face a critical lack of IT personnel for digital transformation.
This is the “mirror stage,” helping businesses understand where they currently stand. According to the Báo Lao động (the Labor Newspaper) , 45% of Vietnamese companies have never conducted periodic workforce structure analysis, meaning most workforce planning still relies on intuition rather than data.
Forecasting Future Workforce Demand
Next, businesses need to align their workforce planning with their business goals for the next 2–5 years:
- If revenue is expected to grow by 30% in two years, how many additional salespeople are needed to meet the target?
- When expanding with three new branches, how many operations managers, accountants, or HR staff are required?
- Which new skill sets will become essential due to industry trends such as automation, digital transformation, or AI adoption?
Many multinational corporations use demand forecasting — predicting workforce needs based on business growth data and industry trends — to build precise HR strategies for the next 3–5 years. Vietnamese businesses, from SMEs to large enterprises, can also apply this model at a suitable scale.
Gap Analysis and Identifying Workforce Gaps
Gap Analysis is the process of assessing the difference between the organization’s current state and its future goals. In HR, it helps identify:
- The current capabilities of the workforce
- The skills and competencies needed to achieve future business objectives
When these two factors don’t align, a “gap” appears — and it’s the manager’s role to close that gap through targeted recruitment, reskilling, or restructuring.
Example:
A Vietnamese finance company forecasts a need for 50 data analysts in the next three years but currently has only 10. The 40-person gap must be addressed early through a combined recruitment and training plan.
This is also where platforms like Hire Central become essential. The AI-powered ATS not only collects and analyzes candidate data but also generates clear funnel reports, helping businesses forecast talent supply and adjust their hiring strategy in time.
Learn more:
Tools and Frameworks for Workforce Planning
To move beyond manual Excel-based planning, many forward-thinking companies are now adopting advanced workforce planning tools and analytical frameworks. Some of the most widely used include:
- SWP (Strategic Workforce Planning) Model – Aligns business strategy with organizational structure and workforce needs.
- 9 Box Grid – Supports succession planning and leadership development.
- HR Analytics Dashboard – Provides real-time insights into time-to-fill, cost-per-hire, and quality of hire.
In Vietnam, Hire Central has emerged as a standout solution. More than just an ATS (Applicant Tracking System), it integrates AI-powered analytics to:
- Automatically analyze candidate profiles and build Talent Pools based on skill sets.
- Generate real-time recruitment funnel reports, helping companies identify process bottlenecks.
- Forecast workforce demand using market data and turnover rates.
Implementing and Monitoring Workforce Plans
A plan only works when paired with consistent execution and measurement. Businesses should:
- Set clear KPIs – e.g., “Reduce time-to-hire by 20% within six months” or “Increase retention of key employees by 15%.”
- Leverage AI technology: According to Gartner (2024), 70% of global organizations now use AI in HR to forecast workforce needs and optimize costs.
- Conduct regular evaluations: Quarterly or annual reviews help ensure that workforce plans stay aligned with overall business strategies.
Implementing and Monitoring Workforce Plans
Hire Central enables HR teams to track multi-level reports — by department, branch, or across the entire organization — providing reliable, data-driven insights for strategic decision-making.
See more:
- Comparing ATS recruitment tools: Which is the best choice?
- Evaluating ATS Systems in Recruitment Process
- AI-Powered ATS Optimization: Transforming Recruitment in Vietnam
Conclusion
In Vietnam’s highly competitive labor market, workforce planning is no longer just an HR task — it’s a survival strategy for the entire organization.
Companies that plan effectively can cut costs, strengthen competitiveness, and stay ahead of market shifts. In contrast, those without a clear plan often find themselves reacting instead of leading.
With its AI-powered recruitment platform, Hire Central is helping hundreds of Vietnamese businesses — from manufacturing and retail to technology and finance — transform their recruitment and workforce planning into a strategic advantage. Book a strategy consultation with Hire Central today.
