Our fourth article in association with the CIPD, Future-focused HR, discusses workforce planning and forecasting, exploring why this is more important than ever. Here, we consider the legal risks when workforce planning goes awry.

Published: 12 August 2026
Authors: Antonia Blackwell

What is workforce planning?

Workforce planning is a critical tool for ensuring businesses have the right skills, in the right roles, at the right time, while minimising legal and employee relations risks. As organisations navigate technological advances, changing market demands and significant employment law reforms, workforce planning is critical to business success.

The consequences of failing to workforce plan

Where employers focus solely on filling current vacancies without considering the skills their organisation will need in the future, they increase the risk of recruiting individuals whose qualifications, experience or capabilities are not aligned with the evolving demands of both the business and the individual role.

If business requirements change and the employee lacks the skills needed to adapt, inevitably capability concerns will arise, leading employers into lengthy performance management processes. In some cases, these processes can successfully support an employee to improve. In others, they result in dismissal where the required standards cannot be achieved. Either outcome can be time-consuming and disruptive for both the organisation and the individual concerned.

Employees who are placed on performance improvement plans may experience increased stress and anxiety, particularly where they feel they were recruited into a role without adequate support or training. This, in turn, can give rise to an increase in grievances if an employee believes they are being treated unfairly or inconsistently. Over time, this can contribute to declining engagement, lower morale and increased employee challenges across the organisation.

The legal risks associated with these situations are likely to become more significant. From January 2027, employees will gain protection from unfair dismissal after only six months' service. This means employers will need to be able to demonstrate not only a potentially fair reason for dismissal, but also that a fair and reasonable process has been followed in respect of any dismissals once six months’ service is reached. With employees potentially obtaining unfair dismissal protection much earlier in their employment, employers may find themselves undertaking extensive and costly processes to address issues that could have been reduced or avoided through more effective workforce forecasting at the outset.

Why is workforce planning so important now?

At the same time, businesses are operating in an environment where workforce requirements continue to change at an unprecedented pace. New technology, shifting customer expectations and evolving business models mean that some roles are transforming rapidly, while others may become less relevant or disappear altogether.

Where roles are no longer required, employers may need to undertake redundancy exercises. Equally, where roles continue to exist, but their responsibilities evolve, changes to terms and conditions of employment, policies or working arrangements may become necessary. Both scenarios involve legal obligations and can present employee relations challenges if not approached carefully.

This is particularly relevant given the employment law reforms that employers will be navigating over the next few months. Changes due to come into force under the Employment Rights Act 2025 will significantly restrict the circumstances in which employers can rely on so-called "fire and rehire" practices where employees do not agree to contractual changes. As a result, organisations will need to engage in more meaningful consultation and explore alternatives well before workforce changes become urgent. Early planning provides employers with flexibility and time needed to identify potential issues and engage constructively with employees. The hope is that change can then be implemented with the agreement of all concerned.

Similarly, reforms expected in 2027 will broaden the circumstances in which collective consultation obligations arise during redundancy exercises. Employers proposing 20 or more redundancies either at one establishment or redundancies, at a level yet to be confirmed, across multiple sites, within a 90-day period may be required to undertake collective consultation with trade unions or employee representatives. This change will mean that collective consultation is likely to be triggered more frequently than under the current law. Employers who understand their future workforce requirements well in advance will be better positioned to identify when these obligations may arise and if so, ensure legal compliance.

What role can regular training and development play in workforce planning?

Effective workforce planning is also about investing in the workforce that already exists.

The growing use of artificial intelligence provides a clear example. Many organisations are introducing AI-driven tools to improve efficiency and support decision-making. Yet successful implementation requires more than simply deploying new technology. Employees need training to understand how these systems interact with their roles, how to use them effectively and how to recognise and manage associated risks. Businesses that proactively identify future capability requirements can develop training programmes that equip employees to adapt to technological change rather than be left behind by it.

Key recommendations

• identify future skills requirements and build these into current recruitment processes as well as training programmes
• ensure employees are supported and given regular feedback, particularly during the first few months of employment and address any concerns early on
• plan for any organisational design changes early and factor in changing legal requirements

Conclusion

By forecasting future capability requirements, businesses can make more informed decisions about recruitment, training, restructuring and organisational changes. This enables businesses to respond to changing circumstances in a strategic way, rather than reacting under pressure once problems have emerged.

For more insights from the CIPD’s Future focused thought leadership series supported by Shoosmiths, sign up here: Future-focused HR