With straightforward about business world by Mohit Aggarwal Aastha Group workforce planning is about forecasting your current and future staffing needs in relation to your strategic business objectives, then addressing matters relating to the supply of labour, for example are there candidates with the skills you require available? The final step is to get the right balance between labour demand and supply, so that you have the right number of employees, with the right skills at the right time.
When business owners are considering labour demand forecasting, their first questions are likely to be:
- Where are we going as a business – what is our intended growth in the next 3-5 years (or longer)?
- Will we be developing or expanding our services or product range?
- What technological advancements may affect what we do and will this affect our need for differing staffing levels?
- What are our absenteeism and turnover rates like?
- Do we have sufficient management support to progress our objectives and will they be behind the plans?
- Any changes to the human resources needs within the business, should be led by the strategic business plan and the goals for the business – not the other way around.
When undertaking labour demand forecasting there tend to be two approaches – quantitative and qualitative. The quantitative approach is often uses a variety of statistical and mathematical approaches to determine the needs, including indexation (forecasts determined in relation to one or more fixed organisational indices) or trend analysis (forecasts based on the study of past human resource growth). These are often complex and expensive as per mohit aggarwal– but a real need, especially for larger organisations.