2.4 Analysing and Forecasting HR Supply and Demand

Overview

Previously
We learnt about evaluating external and internal environments.

In this section 
We learn about analysing and forecasting HR supply and demand.

At the end of this section, you will be able to:

  1. Understand analysing and forecasting HR supply and demand

Forecasting Methods and Periods

The subjective judgment forecasting method depends on the HR professionals and managers' expertise and experience.

Based on their experience and knowledge of consumer demand designs, the HR manager of a retail company anticipates that additional sales staff might be needed throughout the holiday season and modifies the personnel accordingly.

To make forecasts, mathematical model forecasting methods employ quantitative data as well as statistical approaches.

A large manufacturing company, for instance, uses past statistics on manufacturing rates, sales numbers, and employee productivity to develop a statistical framework that forecasts the required number of employees based on expected business growth.

In terms of planning periods, HR forecasting should span three timeframes:

Forecasting the Demand for Human Resources

Forecasting the Supply of Human Resources

Predicting the availability of human resources involves a variety of factors, ranging from simple to complex considerations.

Let us investigate the external and internal sources of human resources, as well as the factors that might influence them, along with some examples.

Click on the 'plus' signs on the images below to find out more about external sources of human capital.

Click on the 'plus' signs on the images below to find out more about internal human resource supply.

Click on the headers below to find out more about factors reducing human resource supply.

By comprehending and anticipating the supply of human resources, organisations can efficiently develop their talent acquisition strategies, discover potential voids, and implement the necessary measures to guarantee a balanced and competent workforce.

Formulate HR Strategies to Fill Vacancies or Deal with Surplus Employees

If the process of forecasting reveals that an organisation has more employees than it needs, this indicates an excess of human resources.

Click on the headers below to learn more about the measures that organisations can adopt to deal with these circumstances.

Develop HR Plans

These tasks comprise fundamental facets of human resource management.

Let's examine each task with specific examples by clicking on the 'plus' signs below.

For more information, please look into following source:

Source: Talks, T. [@TEDx]. (2013, November 13). Human capital & the age of change: Constantin Gurdgiev at TEDxDublin. Youtube. https://www.youtube.com/watch?v=y1sueM_jhSk