Forecasting

Meaning & Definition

Forecasting in HR means to predict what will occur in terms of your current and future workforce needs, costs, or trends in your business. This generally means using historical data, analytics and insight from the business to determine future resource needs, which enables HR and management to plan for things such as hiring, budgets and the overall resource allocation process. 

Important aspects of Forecasting 

• By projecting future workforce needs ahead of time, it assists with labour planning.
• Making it easier to budget and plan salaries accurately for HR and payroll.
• Helping in recruiting by allowing for the future growth of the business.
• Giving data-driven information for better decision-making for future growth and change.
• Reducing exposure to talent risk from being understaffed and from excessive hiring.

Compliance & Policy Considerations 

There is no direct statutory regulation surrounding forecasting. Still, organizations can utilise the information derived from forecasting when planning strategically for their HR, managing their finances, and developing internal workforce policies.