Workforce planning refers to the strategic process of aligning an organization's current and future staffing needs with its business goals and objectives. It involves analyzing the composition of the workforce, identifying gaps in skills and talent, and developing strategies to ensure that the right people are in the right roles at the right time. This process aims to optimize human capital to achieve organizational success and competitiveness.

Example
When a growing technology company forecasts that it will need to expand its software development team over the next two years to meet the increasing demand for its products. To do this, the HR department assesses the current skillsets of existing employees, identifies areas where additional expertise is required, and then creates a hiring plan to recruit new software developers with the necessary skills. This proactive approach ensures that the company has the right talent in place to support its growth and remain competitive in the market.