SUMMARY OF DEMAN AND SUPPLY FORECASTING

This topic is about predicting the future staffing needs of an organization.

• Demand Forecasting determines how many people and what skills the organization will need (the gap between current and future state). Techniques range from Ratio Analysis (using business factors like sales) to Managerial Judgment.

• Supply Forecasting determines how many people will be available, looking both internally (using tools like Succession Planning and Markov Analysis to track employee movement) and externally (assessing the labor market).

• The final goal is to identify and address the difference: a shortage requires recruitment and training, while a surplus requires measures like hiring freezes or layoffs.