- within Law Department Performance, Insolvency/Bankruptcy/Re-Structuring and Criminal Law topic(s)
A NEW ERA OF WORKFORCE PLANNING
The workforce is no longer solely human—so planning for it can't be either.
For decades, workforce planning focused on aligning people with business strategy under relatively stable conditions: predictable demand, established job structures, and incremental change. But that model is becoming increasingly obsolete in an era when AI and automation are redefining work environments and market volatility has become a constant.
At the same time, the workforce itself has expanded. Generative and agentic AI mean that digital workers— intelligent systems, virtual agents, and autonomous processes—now operate alongside human employees in a workforce that is measured not by headcount, but by the balance between human and machine capacity.
In this landscape, the static, structured workforce planning tools we previously relied on are no longer fit for purpose. Instead, the most advanced organizations have started treating workforce planning as a dynamic living system that constantly senses change, models scenarios, and orchestrates human and digital talent in real time.
AI is the key to this shift. Paradoxically, it is both the force that's disrupting work and also the technology that makes adaptive planning possible. AI can simulate multiple futures, rebalance capacity, and build regenerative workforces that adapt and grow through disruption, rather than reacting to it. After all, when deployed constructively, AI frees up human employees to focus on more creative and skilled tasks in new areas.
In this model, workforce planning evolves into the central nervous system of organizational reinvention. Dynamic, data-rich, and AI-enabled, it continuously coordinates strategy, talent, and automation investments, making sure the different parts of the organization are working in harmony to fuel growth. In this era, adaptability is the ultimate advantage—and organizations that fail to adapt die. The question is not whether to change, but how.
In this model, workforce planning evolves into the central nervous system of organizational reinvention.
THE WORKFORCE PLANNING MATURITY CURVE
For years, workforce planning was treated as a back-office chore—tracking headcount, managing labor costs, and filing compliance reports. But the ground has shifted. With more volatile markets, skills in short supply, and AI reshaping how work gets done, workforce planning must take center stage as a lever for growth and resilience.
At Alvarez & Marsal, we conceptualize the journey via various tools, including our Workforce Planning Maturity Curve. The more business value you unlock.
Workforce Planning Strategic Maturity Curve
img
Early stages (1–2) deliver compliance and cost control, though data is inconsistent, collaboration remains tentative, and planning is administrative rather than strategic. Meanwhile, the middle stages (3–4) elevate workforce planning into a strategic enabler, aligning talent and skill sets with priorities, reducing execution risk, and starting to look to the future rather than just focusing on the present. The final stage (5) then leverages AI, automation potential, and real-time sensing in a fully integrated ecosystem—ultimately cultivating a regenerative workforce.
A regenerative workforce means:
- Continuously sensing and responding to change.
- Fluidly rebalancing human and digital capacity.
- Anticipating disruption and using it as a catalyst for reinvention.
- Aligning human potential, AI capabilities, and business goals in real time.
This results in a business that is more innovative, more resilient, and more competitive.
SELF-ASSESSMENT: BUILDING A ROADMAP
Our curve isn't just a diagnostic tool; it's a roadmap. Leaders can identify where they are today and take practical steps across people, processes, data, and technology to climb toward greater agility, resilience, and strategic impact.
These questions will help you assess your organization's current maturity level and identify the next set of priorities to advance workforce planning as a strategic capability.
img
If you answer "mostly yes" at a given stage, you should focus on the following priorities:
- Stage 1–2: Integrate data, program standards, and governance.
- Stage 2–3: Advance skills-based planning and redeployment.
- Stage 4–5: Scale predictive modeling, scenario planning, and automation insights.
- Stage 5: Operate as a regenerative system, embedding AI and continuous sensing to drive growth.
It's crucial to dig into these questions and assess where you need to go. If you're stuck at Stage 2, you must evolve toward a more intelligent, dynamic, and integrated system, which will create space for growth in the long term— otherwise, you'll be at serious risk of falling behind.
The future of workforce planning lies in getting all your assets to work in tandem, driving growth skyward.
Having outlined how to transition from reactive to regenerative workforce planning, it's important to step back and examine the forces driving the need for this change. A series of meta-shifts provide this context, highlighting the technological developments, strategic pressures, and business imperatives that make transitioning to a new workforce planning model not just beneficial, but essential. In other words, these underlying shifts reveal why organizations must evolve their approach to workforce planning to stay competitive, agile, and future-ready. Let's dive into them below.
To view the full article click here.
Originally published 8 December 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
