Staffing function of management involves ensuring availability of right employees for the right jobs. Without employees, it is difficult to perform various business activities. Non performance of critical business activities in the absence of efficient employees may result in non achievement of key business objectives.

Automation of business processes can simplify the way of carrying out business operations, but automation cannot completely eliminate the need for human resources. Staffing function involves various key activities such as recruitment and selection, training of employees, etc. It is one of the most important functions of management.

Like any other function, staffing also involves planning. It is important for the management of an organization to ensure that qualified professionals are hired on critical job positions. It may be difficult to find candidates for positions requiring leadership skills. Similarly, a start up organization may prefer hiring temporary employees. Depending on the size and nature of business activities, demand for human resources may vary.

Meaning Of Human Resource Forecasting In Staffing Function Of A Business

Since staffing function is mainly concerned with management of human resources, staffing function involves ensuring that there is no shortage of employees in the organization. To ensure that there is no shortage of employees, it is important to estimate the attrition that may take place within the organization in the near future.

A comparison of current versus future state of affairs can give an idea on how many employees may be required in the near future. Depending on the period for which forecasts are made, requirements for employees may increase or decrease. In case a company is planning to launch a new product in next six months, requirements for sales and marketing executives may increase.

Similarly, in case a company is planning to shut down few of its branches, human resource forecasting may show a decline in requirement for employees. Human resource forecasting may involve study of current market trends, strategies used by rival firms to attract human talent, previous year’s employee attrition rate, employee satisfaction levels, company’s expansion, growth or diversification plans, etc.

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Purpose Of Human Resource Forecasting

Demand Versus Supply

Human resource forecasting helps in bridging the gap between the demand and supply of human resource at different time intervals. Even though it may be difficult to predict the actual human resource requirement with complete accuracy, human resource forecasting helps an organization in preparing for unforeseen emergencies that may arise on account of high attrition level.

Similarly, human resource forecasting may prevent  hiring of excess employees. Therefore, human resource forecasting also helps in saving costs that may result from improper human resource planning and existence of surplus employees within the organization.

Identification Of Training Needs

Human resource forecasting can also help in identifying the gaps that may exist between the current skills of employees and skills that may be required in the near future to handle complex tasks. Complexity of tasks may arise on account of promotion of employees, increase in job responsibilities of employees, job rotation of employees, etc.

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Further, deployment of a new technology in the organization may require employees to learn and apply new skills. All these training and development requirements can be identified during the process of human resource forecasting.