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HR Forecasting

HR forecasting and labor requirements planning are at the core of our ability to analyze future employment needs for our organizations. Through the process of forecasting future labor requirements, we make determinations—based on both quantitative and qualitative information—of what types of jobs and how many of each type we will need to fill over a particular period of time. If we fail to get it right, we won’t get the right people in place at the right time when they are needed and will always be chasing the organizational losses created by voluntary and involuntary turnover, which causes lower organizational productivity. HR forecasting identifies the estimated supply and demand for the different types of human resources in the organization over some future period, based on analysis of past and present demand. Reliability identifies how consistent a particular measure is. In other words, does the measure give a similar result every time it is used or when it is used by more than one person? Validity refers to whether or not we measured what we thought we measured. What we are measuring seems obvious to us, but we sometimes make mistakes. We look at both forecasting methods and identify whether we expect to have a surplus or a shortage of people in the organization over the next few years. More likely, we will find that we will have a surplus of some types of people and a shortage of others. Regardless of the situation, once we know what to expect, we can set up procedures to correct the expected problem.