Estimate Future HR Needs Factors to consider include evaluating current employee potential, determining training needs and putting succession plans in place. A primary question managers should consider is whether employees are working in positions that fully utilize their strengths, abilities and experience.

Forecasting human resource demand is the process of estimating the future human resource requirement of right quality and right number. As discussed earlier, potential human resource requirement is to be estimated keeping in view the organisation’s plans over a given period of time.

Human resource planning based on a calculative forecasting can improve operational efficiency and increase the profitability of a business. HR planning doesn’t include making staffing decisions on the fly or by any means be just a guestimate.

There are both quantitative and qualitative approaches for forecasting human resource demands….Human Resource Planning and Demand Forecasting Techniques

1. Managerial Judgement.
2. Work Study Technique.
3. Econometrics Models.
4. Delphi Technique.
5. Regression Analysis.

Supply and Demand Planning. Facilitating the planning process to identify the roles needed in order to meet the business objectives and financial forecasts to move the company forward. Supply and demand planning focuses on talent acquisitions, talent management, and workforce balancing to meet future needs.

Demand forecasting helps in determining the number and type of personnel/human resources required in future. The purpose of supply forecasting is to determine the size and quality of present and potential human resources available from within and outside the organisation to meet the future demand of human resources.

Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization’s most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.

Introduction Human Resource Forecasting  Process of projecting the organization future HR need (demand) and how it will meet those needs (supply) under a given set of assumptions about the organization policies and the environment conditions where it operate.

Internal supply of human resource available by way of transfers, promotions, retired employees & recall of laid- off employees, etc. Source of external supply of human resource is availability of Laboure force in the market and new recruitment.

The first step of human resource planning is to identify the company’s current human resources supply. In this step, the HR department studies the strength of the organization based on the number of employees, their skills, qualifications, positions, benefits, and performance levels.

Regression analysis is used to forecast demand for human resources at some point of time in future by using factors such as sales, production services provided etc. This method is used when independent and dependent variables are functionally related to each other.

Forecasting is a technique of predicting the future based on the results of previous data. It involves a detailed analysis of past and present trends or events to predict future events. It uses statistical tools and techniques. Forecasting begins with management’s experience and knowledge sharing.

Prediction is concerned with future certainty; forecasting looks at how hidden currents in the present signal possible changes in direction for companies, societies, or the world at large. Thus, the primary goal of forecasting is to identify the full range of possibilities, not a limited set of illusory certainties.

Top Four Types of Forecasting Methods