This article explains how to propose, review, and approve a headcount plan via the Planning Cycles tab in the Planning area.
The Planning Cycles tab is one of the three main features in Personio's Workforce Planning journey, and it requires the subscription to Personio Core Pro.
Understand the approval chain
When setting up a planning cycle, you configure an approval chain. You need to add at least one reviewer and one final approver:
- Reviewers: one or more people who can review and approve submitted plans.
- Final approver: one person who gives the final approval of the plan.
Once a plan owner submits their headcount plan, all reviewers and the final approver receive an inbox notification to review or approve the proposed plan.
The reviewer list doesn't function as a strict approval sequence. Any reviewer can approve the plan at any time. When they do, all reviewers listed before them are skipped and can no longer review the plan.
For example, if reviewer 2 approves before reviewer 1, the system skips reviewer 1, and they can no longer review the plan. If reviewer 3 approves first, the system skips both reviewers 1 and 2.
Place people with more seniority higher in the list, as they have the authority to skip earlier reviewers. The final approver can only approve a plan once at least one reviewer has approved it first.
Propose a headcount plan
Once Administrators launch a planning cycle, you as a Supervisor, Director or Executive can access the plan and submit a proposal. To do so, follow these steps:
- Go to Planning > Planning Cycles and access the relevant planning cycle.
- Create new positions and update existing ones, such as removing a position or updating its target details.
- Fill in the following fields for each new position you create. The table below describes each field.
- Submit the headcount plan for review. Once you submit the plan, you cannot edit it. Reviewers receive an inbox notification when you submit your plan.
The table below lists all fields available when creating a new position.
| Field | Definition | |
| Mandatory | Position owner | The person responsible for overseeing a specific job position often makes decisions related to that role, such as managing the costs associated with it. |
| Employee | The employee assigned to this position. You can leave it blank and fill it in later if the employee is not yet known or hired. | |
| Request reason | The reason for requesting changes in the headcount plan. | |
| Effective date | The date when changes in the headcount plan, like starting, ending, or modifying a position, take effect. | |
| Optional | Target supervisor | The employee responsible for overseeing the future employee in this position. As soon as you add a supervisor, the open position shows up in the Org Chart. |
| Hiring manager | The employee responsible for the recruitment process for this position. | |
| Department | The company division where the relevant employee is placed. | |
| Team | The company group where the relevant employee is placed. | |
| Workplace | The workplace where the relevant employee is placed. | |
| Start date | The date when a position begins as specified in the headcount plan. | |
| Target FTE | It refers to the full-time equivalent (FTE) of that employee, calculated by comparing their weekly hours to a full-time schedule. You would enter a 1.00 for a full-time employee or 0.80 for a part-time employee. | |
| Cost center | A field used to assign and track expenses within a specific company area for budget management. | |
| Mandatory | Job name | The job from the job architecture and catalogue linked to the position. Select the Job name to auto-fill the remaining details. |
Note:
Effective date refers to when changes to employment terms, such as salary or position, take effect, while Start date refers to when an employee actually begins working in their new position.
Review the headcount plan
Once a Supervisor, Director or Executive has submitted their headcount plan proposals, you as a Senior Executive or Vice-president can access the plan to review it.
To do so, follow these steps:
- Navigate to Planning > Planning Cycles.
-
Click on the specific headcount plan proposal from the list to review it.
Note:
You need to go into every headcount plan proposal and review it individually. It's currently not possible to bulk-approve all the listed headcount plans proposals. - Once in the headcount plan proposal, click on the relevant position in the list To review the position details and the justification from the plan owner. Alternatively, click the Planned Positions tab to view all new positions in the headcount plan proposal.
- Update the position details as you see fit. If applicable, click Remove to decline the position entirely. Note that a removed position cannot be reactivated later on.
- Submit the headcount plan(s) for final approval. Final approvers will be notified.
Approve the headcount plan
Once a Senior Executive or Vice-president has reviewed the headcount plan, you as a Chief Executive can access the plan to give the final approval.
To do so, follow these steps:
- Navigate to Planning > Planning Cycles.
-
Click on the specific headcount plan proposal from the list to review it.
Note:
You need to go into every headcount plan proposal and review it individually. It's currently not possible to bulk-approve all the listed headcount plans proposals. - Once in the headcount plan proposal, click on the relevant position in the list to review the position details and the justification from the plan owner. Alternatively, click the Planned Positions tab to view all new positions in the headcount plan proposal.
- Update the position details as you see fit. If applicable, click Remove to decline the position entirely. Note that a removed position cannot be reactivated later on.
- Give the final approval for the headcount plan proposal(s). Final approvers will be notified.