Staffing: Forecasting Labour Supply and Workforce Planning

Running Head: STAFFING 0
Management

STAFFING 1
Answer 1: For forecasting the supply of labour, it is essential to understand the current as
well as future competency trends and skills in the labour market. It is because a firm has to
change in some aspect due to the changing demand and actual data of market.
Forecasting external labour market: It is true that all the organisations hire the labour market
on one point or another point (Bailey, Mankin, Kelliher & Garavan, 2018). It is because an
organization hires the new and experienced workers in order to meet the increasing demand,
as well as replacing the new workers with one who are retiring or leaving the organization.
Organization monitors the external labour market in two ways:
 By analysing the employment trend in the organisation. Employment trends can be
done by proper research of the market.
 By finding out the replacement need such as retirement, death, and termination.
As compare to the external labour forecasting, internal labour demand is forecasting in such a
way:
 Demand forecasting in the internal labour market involve the interpretation of specific
skills and expected changes that will occur in the future such as turnover, retirements, and
termination. In every organisation, internal labour demand occurs due to turnover of any
employee from the organisation.
Answer 2
Workforce planning is the process that enables the organization to predict as manage their
talent demand and supply. The main objective is to help the organization for achieving its
business strategy and gaols. Certain steps that are followed in workforce planning are as
follows:
 Identification of the firm business strategy: mission, vision, and strategy of the firm
affect the current as well as future needs of the staffing. It also tends to influence the types
and number of employees that are needed (Noe, Hollenbeck, Gerhart & Wright, 2017).
 Articulating the strategic staffing decisions and firm’s talent philosophy: several firms
have several commitments to things such as promoting workers, retailing workers, and hiring