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HR Forecasting Process Explained

The document discusses HR forecasting, which involves determining future demand and supply of human resources. There are three categories of forecasting: transaction based, event based, and process based. HR forecasting reduces costs, increases flexibility, and ensures alignment with business forecasts. Key areas to analyze include specialists, managers, and designated groups. The five stages of forecasting are identifying goals, determining demand, assessing internal supply, determining external needs, and developing plans. Factors that affect forecasting include mission, budgets, policies, structure, skills, markets, laws, technology, and more. Forecasts have different time horizons. Determining needs involves demand, supply, requirements, programs for deficits or surpluses.

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10 views9 pages

HR Forecasting Process Explained

The document discusses HR forecasting, which involves determining future demand and supply of human resources. There are three categories of forecasting: transaction based, event based, and process based. HR forecasting reduces costs, increases flexibility, and ensures alignment with business forecasts. Key areas to analyze include specialists, managers, and designated groups. The five stages of forecasting are identifying goals, determining demand, assessing internal supply, determining external needs, and developing plans. Factors that affect forecasting include mission, budgets, policies, structure, skills, markets, laws, technology, and more. Forecasts have different time horizons. Determining needs involves demand, supply, requirements, programs for deficits or surpluses.

Uploaded by

sonia_hun885443
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Chapter 6

The HR Forecasting Process


Strategic Human Resource Planning
HR Forecasting
An ascertaining the net requirement for personnel by
determining the demand for and supply of human
resources now and in the future
Forecasting Activities Categories

Transaction based forecasting

Event based forecasting

Process based forecasting


Benefits of HR Forecasting
Reduces HR Costs

Increases Organizational Flexibility

Ensures a close linkage to the Macro Business


Forecasting Process
Ensures that organizational requirements take
precedence over issues of resource constraint and
scarcity.
Key Personnel Analysis
Conducted by HR Forecasters

Specialist/Technical/Professional Personnel
Employment Equity-Designated Group
Membership
Managerial & executive personnel

Recruits
5 Stages of Forecasting Process
1. Identify organizational goals, objectives and plans
2. Determine overall demand requirements for
personnel
3. Assess in-house skills and other internal supply
characteristics
4. Determine in net demand requirements that must be
met from external, environment supply sources
5. Develop HR Plans and Programs to ensure that the
right people are in the right place
Environmental & Organizational Factors
affecting Hr forecasting

Internal/Organizational External/Environmental
 Corporate mission statement, strategic  Economic situation
goals
 Labor Markets & unions
 Operational goals, production budgets
 HR Policies(e.g. compensation,  Governmental Laws and
succession) regulations
 Organizational structure, restructuring  Industry and product life cycles
mergers, and so on  Technological changes
 Workers KSA’s/competencies and
 Competitor labor usage
expectations
 HRMs level of development  Global market for skilled labor
 Organizational culture, workforce  Demographic changes
climate, and satisfaction and internal
communications
 Job Analysis :workforce coverage,
current data
HR Forecasting Time horizons
Current forecast

Short - run forecast

Medium - run forecast

Long - run forecast

* The outcome of forecasts derived from these 4 time


horizons leads to predictions and projections(envelope)
* Set of alternative scenarios & contingency plans
Determining net HR Requirements
Determining HR demand
Ascertain HR Supply: Internal & External
Determine Net HR Requirements
External Supply requirements = replacement + change supply components
Change supply = hiring to increase(or decrease) the overall staffing level
Replacement Supply= hiring to replace all normal losses
External supply = current workforce size * replacement % per year + change
% per year.
Institute HR Programs: HR deficit and HR surplus
HR deficit= HR demand > HR internal supply
* Job Sharing, Attrition & Hiring freeze
Thank you…

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