Business forecasting can be described as “a method to predict the future, where the future is narrowly defined by economic conditions. It combines information gathered from past circumstances with an accurate picture of the present economy to predict future conditions for a business” (“Project Managers”, 2019). Even though forecasting is rarely exact it’s important for organizations to have some idea, financially, what the future holds. A well completed forecast can inform an organization if the prices of materials, labor, or general expenses are going to go up, down, or remain the same. Additionally, a labor forecast can predict job trends. For instance, the Bureau of Labor Statistics indicates that although the job market is growing, it is growing slower than normal. Organizations can use this information now to revise their labor needs or, even over hire. However the organization chooses to handle it is up to them, the importance is that the organization knew about the possibility of an issue and has time to react. (“Bureau Of Labor Statistics”, 2019).
Project Managers(2019). Retrieved from https://www.projectmanager.com/blog/business-forecasting
Bureau of Labor Statistics(2019). Retrieved from https://www.bls.gov/opub/mlr/2015/article/labor-force-projections-to-2024.htm
Forecasting is a great asset when staff planning. A firm should bother doing it, to help know what they need futuristic-ally when hiring employees. Forecasting would help the firm make accurate decisions when hiring employees. For example, forecasting will enable a firm to understand current and future skill and competency trends in the labor market. In my opinion, the labor force trend would consist of quality, quantity, and skills; which will influence a firm’s staff planning when making decisions in hiring external and retraining internally. For instance, if the firm need a certain amount of staffing to fulfill the work that needs to done. Forecasting would enable the firm to know what quality and skill set needed. Forecasting is a great tool for any firm to use, it would help the firm stay in suit with their business strategy they have for their firm that would be in correlation to their staffing planning. In addition, forecasting should be set in the agenda of staffing planning. Their both essential to have when a firm have a mission, vision and business strategy to maintain. By utilizing both attributes this will give the firm a time frame, control and detail to what they for the future and present.