HR Forecasting or Human Resource Forecasting is the process of determining or forecasting a company's staffing requirements using existing data. Forecasting is used to assess the abilities and performance levels of the current staff in order to find gaps where recruitment or reorganizing is required. The HR department can predict future requirements by analyzing data and company statistics.
Human resource forecasting aims to ensure that a company has the right quantity and quality of personnel to achieve its strategic objectives. The HR department of any organization can analyze both short-term and long-term staffing demands based on anticipated sales, business growth, turnover, and other factors.
HR forecasting constitutes the heart of the HR planning process and can be defined as ascertaining the net requirement of personnel by determining the demand for and supply of human resources now and in the future.
Human resources forecasting attempts to predict the organization’s future demands for people and for jobs. Major factors to be examined are the company's objective (growth, contraction, status quo etc.) and the employment history of the company (retirements, resignations, terminations, promotions, deaths etc.). The combination of these two sources results in an initial forecast of personnel needs.
Use of this Term in Sentences
- HR forecasting can be conducted by using either qualitative or quantitative methodology.
- Data analysis is a great option when establishing an effective HR forecasting method for an organization.