Workforce Forecasting: A Helpful Guide for Managers

Your business is anything but static, and managing employees when your company is changing and growing can be tricky. The best way to ensure you have the right people scheduled at any given time is with a workforce forecasting plan.

In this article, we’ll tell you what workforce forecasting is and how it benefits your company. Then we’ll walk you through how to implement your own workforce forecasting plan.

Table of Contents

• What is workforce forecasting?
• The benefits of workforce forecasting
• Essential elements of workforce forecasting
• Workforce forecasting techniques
• Steps to workforce forecasting implementation

What is Workforce Forecasting?

Staffing the right people in the right jobs is key to a successful business. Workforce forecasting helps businesses assess and align their employees with the company’s strategic goals. You're basically looking down the pipeline and determining the right number and type of employees needed to do the job.

The Benefits of Workforce Forecasting

Better Resource Planning

Workforce forecasting helps to quickly identify and fill any gaps in your team. For example, during peak seasons like holidays, forecasting allows you to look back at previous trends and adjust your current staffing to meet new business demands.

Easier Budgeting

Managing your budget becomes much easier when you have effectively forecasted your resource needs.

Less Overtime and Staff Shortages

With better alignment of resource supply and demand, unnecessary staffing costs are reduced, and you avoid revenue losses due to personnel shortages.

Strategic Employee Management

Workforce forecasting allows you to evaluate your current employees’ skill sets, helping you plan ahead for training or recruiting to meet future business needs.

Benefits for Restaurants

For restaurants, balancing labor costs with demand is crucial. Workforce forecasting can help manage your bottom line while ensuring excellent service to diners.

Essential Elements of Workforce Forecasting

Demand Planning

Anticipate the number of employees needed at any given time, considering factors like seasonality and business trends.

Historical Data Patterns

Review historical data to identify staffing patterns, skill gaps, and turnover rates, which can inform future needs.

Current Workforce Assessment

Evaluate your current workforce to establish a baseline. Consider headcount, demographics, roles, and skills.

Gap Analysis

Identify gaps between your current workforce and future needs to align with your strategic goals.

Workforce Forecasting Techniques

Quantitative Forecasting

Use mathematical and statistical models to predict future workforce needs based on historical trends.

Qualitative Forecasting

Gather expert opinions, run focus groups, and conduct market research for a more nuanced forecast.

Hybrid Forecasting

Combine quantitative and qualitative methods for a comprehensive forecasting model.

Steps to Workforce Forecasting Implementation

1. Define your business goals and capture the skills and costs required for your strategic plan.
2. Review your current workforce to establish a baseline.
3. Evaluate future needs in line with your strategic goals, including additional skills and costs.
4. Choose the appropriate workforce forecasting technique (quantitative, qualitative, or hybrid).
5. Build your forecasting model using the chosen technique.
6. Consider possible variables and identify any gaps.
7. Create a plan to close identified gaps.
8. Regularly review and adjust your forecast based on real-time data and outcomes.

Better Planning, Better Business

Workforce forecasting ensures a more confident approach to budgeting, cost-effective staffing, and greater employee satisfaction. Sling’s employee scheduling software is an essential tool for resource planning. It helps simplify time tracking and payroll while controlling labor costs, making employee management easier for today and tomorrow.

This content is for informational purposes and not intended as legal, tax, HR, or other professional advice. Please consult a professional for specific advice.