Effective workforce planning has never been more important. As organisations face increasing financial pressures, evolving service demands and rapid technological change, ensuring the right people, with the right skills, are in the right roles is critical to long-term success.
The National Audit Office’s (NAO) recent insight report, Government Workforce Planning – Lessons Learned, highlights the importance of strategic workforce planning across the public sector and provides valuable lessons that are equally relevant to organisations across education, housing, charities and the wider public and not-for-profit sectors.
Why Workforce Planning Matters
The public sector employs more than six million people across the UK, with workforce costs reaching approximately £260 billion during 2024-25. The NAO notes that workforce planning is fundamental because the delivery of public services depends heavily on having a capable, appropriately skilled workforce.
When workforce planning is undertaken effectively, it helps organisations:
- Deliver strategic objectives more efficiently.
- Improve service quality and performance.
- Manage financial resources effectively.
- Build resilience against future challenges.
- Adapt to changing skills and resource requirements.
Preparing for a Changing Workforce Landscape
The report highlights several factors that will influence workforce requirements in the coming years, including demographic changes and the growing adoption of digital technologies and artificial intelligence (AI). Public sector employment increased from 5.6 million in 2019 to 6.2 million by December 2025, demonstrating the scale and significance of workforce-related decisions.
As AI and digital solutions become increasingly embedded within organisations, many traditional roles are likely to evolve. Workforce planning therefore needs to look beyond current staffing requirements and anticipate the skills and capabilities that will be needed in the future.
Four Key Lessons from the NAO
The NAO identifies four areas where organisations should focus their workforce planning efforts.
- Supporting Productivity Through Digital Transformation
Digital technologies and AI have the potential to transform services and improve productivity. However, realising these benefits requires organisations to understand how technology will affect workforce requirements and to invest in the development of new skills.
A successful workforce strategy should consider not only technology implementation but also how roles, processes and organisational structures may need to evolve.
- Strengthening Organisational Resilience
Workforce planning plays a vital role in ensuring organisations remain resilient during periods of change and uncertainty. Identifying critical roles, succession risks and skills shortages enables organisations to respond more effectively to operational challenges and future disruptions.
- Improving Financial Management
People are often an organisation’s largest single cost. Effective workforce planning can support better financial management by aligning staffing resources with strategic priorities and ensuring investment decisions are supported by robust evidence.
This is particularly important at a time when many organisations face increasing budgetary constraints and demands for greater efficiency.
- Developing Capability and Coordination
The NAO highlights the importance of strengthening workforce planning capability and improving coordination across organisations and sectors. Effective workforce planning requires access to quality data, strong leadership and clear links between workforce decisions and organisational objectives.
What This Means for Organisations
While the report focuses on government, its findings have broad relevance. Organisations across all sectors are increasingly grappling with recruitment challenges, succession planning concerns, skills shortages and digital transformation programmes.
Boards and senior leaders should be asking:
- Do we understand our future workforce requirements?
- Are our workforce plans aligned to our strategic objectives?
- Do we have the data and information needed to make informed decisions?
- How will technological change affect our workforce over the next five to ten years?
- Are we investing sufficiently in workforce development and resilience?
Addressing these questions can help organisations better manage risk while positioning themselves to achieve their long-term goals.
How TIAA Can Help
At TIAA, we work with organisations across the public, education, housing and charitable sectors to strengthen governance, risk management and organisational resilience.
Effective workforce planning relies on robust assurance arrangements, reliable data and strong strategic oversight. Through our internal audit, governance and risk advisory services, we help organisations assess whether their workforce planning processes support effective decision-making, risk management and the delivery of strategic objectives.
Looking Ahead
The NAO’s report reinforces a clear message: workforce planning is no longer simply an HR activity. It is a strategic discipline that underpins organisational performance, resilience and financial sustainability. As digital transformation accelerates and workforce demands continue to evolve, organisations that take a proactive and evidence-based approach to workforce planning will be best placed to meet future challenges and deliver lasting value.
Source: National Audit Office, Government Workforce Planning – Lessons Learned, published 15 July 2026.