What does forecasting in human resources aim to predict?

Forecasting in human resources primarily aims to predict areas of labor shortages or surpluses. This is essential for staffing decisions and workforce planning. Understanding the future demand for specific skills and the availability of qualified candidates allows organizations to proactively manage recruitment, training, and development efforts. It helps ensure that the right number of employees with the right skills are in place to meet organizational needs as they evolve.

Considering the other options, changes in company policy, while important, are typically driven by executive decisions rather than being the focus of HR forecasting. Future revenue growth is generally a financial forecast that falls more under the purview of financial planning than human resources. Similarly, while employee satisfaction rates are crucial for overall workforce well-being and productivity, they do not fall within the primary scope of HR forecasting focused on staffing and labor market dynamics. Thus, the emphasis on predicting labor shortages or surpluses aligns accurately with the core objectives of HR forecasting.