These forecasting techniques will allow your CHRO to better understand the needs of your company now and in the future.
Being able to properly implement the best forecasting techniques is essential for CHROs to do to know the future needs of the company.
The importance of human resource forecasting is to not only be able to correctly forecast the needs of the company but also the best techniques to use to ensure all their bases are covered. It is essential that chief human resource officers understand the best techniques to properly assess the future needs of their company.
Human Resource Forecasting Techniques
A job analysis is an excellent forecasting technique for CHROs to use. A good human resources planner needs to focus on the kinds of jobs the company will need to fill in the future whether it’s replacing employees who leave the company or fill positions that will one day exist. Job analysis helps CHROs know the skills, qualifications and personal traits successful employees must exhibit to fill these positions.
Macroeconomic modeling programs help CHROs predict the future needs of their company’s workforce. These types of programs use various economic indicators to determine how a workforce must grow or shrink to respond the best way to labor market changes. Some of these programs do not include analysis of past trends so it is best to choose a program that includes this analysis to better predict market changes.
A great way for CHROs to understand the needs of their current workforce is to study industry reports and conduct employee surveys. There are many associations like the U.S. Bureau of Labor Statistics that CHROs can use to study prepared forecasts made for specific industries. It is also beneficial for companies to compare their predictions to those of other employers through employer surveys that ask employers to predict multiple future needs of their company.
Other techniques of human resource planning available for CHROs is the labor-output ratio and labor surveys. The labor-output formula includes data gained from the number of past employees in different categories and output. CHROs can also analyze labor turnover surveys to better understand major labor trends that are happening in the labor market. Creating an overview of the company to determine the level the company is currently at is the best way to start any forecasting procedures. A few steps that will help CHROs compile effective forecasting data include:
- Analyze the Current Job Market
- Evaluate the Needs of the Organization
- Anticipate Possible Employee Turnover
- Estimate Future Needs of the HR Department
- Conduct Trend and Ratio Analysis
- Conduct a Detailed Job Analysis
- Establish Past Behavior Indicators
- Conduct a Workload Analysis
- Administer Online Surveys to All Employees
- Use Society of Human Resource Calculators
- Read Department of Commerce Reports
- Follow Documented Forecasting Processes
When it comes to establishing the most effective forecasting methods for your company, analyzing all the data that is available to you is important. Data helps CHROs predict the future needs of their company with more accuracy than ever before. When companies use all the data that’s at their disposal, they will more accurately be able to forecast all future needs of their company to ensure company success.
What kind of forecasting techniques does your company use to guarantee they’re ahead of the curve?