Forecasting Future Human Resources Needs: Quantitative Approaches

Forecasting Future Human Resources Needs: Quantitative Approaches
December 27 10:11 2016 Print This Article

When it comes to the GWC Valves USA organization, they understand the need of forecasting future human resource needs by using several quantitative approaches. The reason for forecasting human resources is to have the staff in order to complete the tasks at hand and several factors should be considered along with this including:

  • Projected turnover as a result of resignations or terminations
  • Quality and nature of employees in relation to what management sees as the changing needs of the firm
  • Decisions to upgrade the quality of products or services or to enter into new markets
  • Planned technological and administrative changes aimed at increasing productivity and reducing employee head count
  • The financial resources available to each department

Since the GWC Valves USA is a large organization, when it comes to forecasting demand, this is primarily quantitative in nature therefore there are quantitative approaches used to determine the human resources requirements and these include trend analysis, ratio analysis, scatter plot analysis, and regression analysis. Trend analysis involves studying the firms employment levels over the last three to even five years in order to be able to predict the future employment needs. The ratio analysis involves making forecasts based on the ratio between some causal factor such as the sales volume and the number of employees that are needed to meet that demand such as salespeople. The scatter plot is used to determine whether two factors a measure of business activity and staffing levels are related therefore it is a graphical method used to identify the relationship between two variables. The regression analysis is a sophisticated statistical technique used to determine the line of best fit, which involves multiple variables. Regression analysis is a mathematical formula used to project the future human resource needs in a large or smaller organization.

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