'''Workforce modeling''' is the process of aligning the [[demand ]] for skilled labor with the availability and preferences of [[skilled workers ]] ([[Supply and demand|supply]]). It usesutilizes mathematical models to supportperform tasks such as [[sensitivity analysis ]] , scheduling, and workload forecasting. ▼{{Use mdy dates|date=October 2024}}{{peacock|date=January 2014}}
This approach iscan commonlybe appliedused in industries with complex labor regulations, certified workersprofessionals, and varyingfluctuating levelsdemand of— demand,such includingas healthcare, public safety, and retail. Workforce modeling solutionstools oftencan include software tools that helphelps determine staffing needs based on workload volumevariations across different periods, such as times of day, days of the week, or seasonal cycles. ▼▲'''Workforce modeling''' is the process of aligning the [[demand]] for skilled labor with the availability and preferences of [[skilled workers]] ([[Supply and demand|supply]]). It uses mathematical models to support tasks such as [[sensitivity analysis]] , scheduling, and workload forecasting.
▲This approach is commonly applied in industries with complex labor regulations, certified workers, and varying levels of demand, including healthcare, public safety, and retail. Workforce modeling solutions often include software tools that help determine staffing needs based on workload volume across different periods, such as times of day, days of the week, or seasonal cycles.
==Definition==
The term can be differentiated from traditional staff [[Schedule (workplace)|scheduling]].<ref>{{Cite journal |last=Ernst |first=A. T |last2=Jiang |first2=H |last3=Krishnamoorthy |first3=M |last4=Sier |first4=D |date=2004-02-16 |title=Staff scheduling and rostering: A review of applications, methods and models |url=https://www.sciencedirect.com/science/article/pii/S037722170300095X |journal=European Journal of Operational Research |series=Timetabling and Rostering |volume=153 |issue=1 |pages=3–27 |doi=10.1016/S0377-2217(03)00095-X |issn=0377-2217|url-access=subscription }}</ref> Research indicates that traditional static planning models result in 60% of operating hours being either understaffed, or overstaffed, while modern workforce modeling implementations have achieved substantial cost reductions.<ref name=":1">{{Cite web |title=AI workforce planning for travel and logistics {{!}} McKinsey |url=https://www.mckinsey.com/industries/travel/our-insights/ai-can-transform-workforce-planning-for-travel-and-logistics-companies |access-date=2025-06-24 |website=www.mckinsey.com}}</ref> Staff scheduling is rooted in [[time management]].<ref>{{Cite journal |last=Pinedo |first=Michael L. |date=2022 |title=Scheduling |url=https://link.springer.com/book/10.1007/978-3-031-05921-6 |journal=SpringerLink |language=en |doi=10.1007/978-3-031-05921-6|url-access=subscription }}</ref> Besides demand orientation, workforce modeling also incorporates the forecast of the workload and the required staff, the integration of workers into the scheduling process through interactivity, and analysis of the entire process.<ref>{{Cite journal |last=Algethami |first=Haneen |last2=Martínez-Gavara |first2=Anna |last3=Landa-Silva |first3=Dario |date=2019-10-01 |title=Adaptive multiple crossover genetic algorithm to solve workforce scheduling and routing problem |url=https://doi.org/10.1007/s10732-018-9385-x |journal=Journal of Heuristics |language=en |volume=25 |issue=4 |pages=753–792 |doi=10.1007/s10732-018-9385-x |issn=1572-9397}}</ref> The evolution from traditional scheduling to workforce modeling demonstrated quantitative benefits and reflects broader technological advancement in organizational management.<ref name=":1" />
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The term can be differentiated from traditional staff [[Schedule (workplace)|scheduling]]. Staff scheduling is rooted in [[time management]]. Besides demand orientation, workforce modeling also incorporates the forecast of the workload and the required staff, the integration of workers into the scheduling process through interactivity, and analysis of the entire process.
==Complexity of the model==
Many applications providing a workforce modeling solutionsolutions might use the [[linear programming]] approach to create the Workforce Model. Linear methods of achieving a schedule are generally based on assumptionsassume that demand is based on a series of independent events, each with a consistent, predictable outcome. However, modelingModeling the uncertainty and dependability of thesesuch events is a well-researched area.<ref name="Clancy, Thomas R. 2008">Clancy, Thomas R. ''Managing Organizational Complexity in Healthcare Operations.'' [[The Journal of Nursing Administration 38.9 (2008): 367–370. Print.]]</ref> Modeling approaches such as [[system dynamics]] have also been employed in workforce modeling to address interdependencies and feedback loops within large organizations, such as [[NASA]].<ref name=":0">{{Cite journal |last=Marin |first=Mario |last2=Zhu |first2=Yanshen |last3=Meade |first3=Phillip |last4=Sargent |first4=Melissa |last5=Warren |first5=Jullie |date=2007 |title=Workforce Enterprise Modeling |url=https://www.jstor.org/stable/44719519 |journal=SAE Transactions |volume=116 |pages=873–876 |issn=0096-736X}}</ref> [[Heuristic|Heuristics]] have also been applied to the problem, and [[metaheuristics]] have been identified as effective methods for generating complex scheduling solutions.<ref name="Clancy, Thomas R. 2008" /><ref>{{Cite journal |last1=Burke |first1=Edmund |last2=Causmaecker |first2=Patrick De |last3=Berghe |first3=Greet Vanden |last4=Landeghem |first4=Hendrik Van |date=2004 |title=The State of the Art of Nurse Rostering |url=https://lirias.kuleuven.be/bitstream/123456789/123829/1/JOS_ |url-status=dead |journal=Journal of Scheduling |volume=7 |issue=441–499 |pages=441–499 |doi=10.1023/B:JOSH.0000046076.75950.0b |archive-url=https://web.archive.org/web/20160304113501/https://lirias.kuleuven.be/bitstream/123456789/123829/1/JOS_ |archive-date=March 4, 2016|url-access=subscription }}</ref>
Workforce modeling solutions can be created using a [[software]] solution for demand-oriented workforce management.
==== Incorporation of AI and Machine Learning ====
===== AI's Impact on Employment: =====
Anthropic CEO Dario Amodei warned that AI could eliminate up to 50% of entry-level white-collar jobs and raise unemployment to 10–20% within five years. This highlights the significant impact AI could have on workforce dynamics. [https://www.axios.com/2025/05/30/ai-jobs-replace-humans-ceos-amodei <nowiki>[Source]</nowiki>]
==== Workforce Management Software Market Growth ====
The workforce management software market is projected to grow by USD 3.67 billion between 2025 and 2029, driven by regulatory compliance and AI-powered market evolution. [https://www.prnewswire.com/news-releases/workforce-management-software-market-to-grow-by-usd-3-67-billion-2025-2029-boosted-by-regulatory-compliance-market-evolution-powered-by-ai---technavio-302370194.html <nowiki>[Source]</nowiki>]
== Integration with Financial Planning and Strategic Objectives ==
==== Michigan's AI Workforce Plan: ====
Michigan's Department of Labor and Economic Opportunity released an AI and Workforce Plan aiming to create up to 130,000 good-paying jobs and gain up to $70 billion in economic impact over the next 5 to 10 years. The plan focuses on integrating AI into workforce planning and economic strategies. [https://www.michigan.gov/leo/news/2025/05/29/ai-and-the-workforce-plan-will-create-jobs-invest-in-workforce-and-enhance-economic-growth <nowiki>[Source]</nowiki>]
== Real-World Applications and Case Studies ==
==== Media Industry: ====
Business Insider laid off approximately 21% of its workforce, aiming to restructure the company towards a more AI-driven future. CEO Barbara Peng stated that over 70% of employees already use Enterprise ChatGPT, with a goal of 100% adoption. [https://www.sfgate.com/bayarea/article/business-insider-ai-laying-off-staff-20353086.php <nowiki>[Source]</nowiki>]
==NotesReferences==
{{reflist}}
<references/>
==Further reading==
[[Category:Management systems]]
[[Category:Human resource management]]
[[Category:Health]]
[[Category:Organization]]
[[Category:Workforce]]
[[Category:Modeling]]
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