The HR Forecasting Process (Chapter 4)

1. Supply

1.1. The source of human capital to meet demand requirements, obtained either internally (current members of the organization’s workforce) or from external agencies

2. Human capital forecasting at the Macro-level

2.1. The ultimate objective is to identify jobs where potential labour market imbalances are expected to occur over the decade

2.2. Firm-specific human capital

2.2.1. The competencies, knowledge, skills, and abilities that employees possess based on their tacit knowledge, and learned from experience and through mentorship in the organization

3. General human capital

3.1. The knowledge, skills, and abilities that are held by employees and that are useful to the firm

4. Demand

4.1. The organization’s projected requirement for human capital

5. Long-run forecast

5.1. Strategically plans for 5+ years in the future; extremely flexible

6. Labour shortages

7. HR gaps

7.1. A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirement

8. HR surpluses

8.1. A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirement

9. Human capital stock

9.1. The amount of any specific form of human capital that is available to the firm at any given time

9.2. The human resources concept regarding a gap in which there are not enough qualified employees to fill demand of the workplace

10. Human capital flow

10.1. The change in the stock of human capital over time. Factors that affect the flow of human capital include terminations, promotions, lateral movements, and demotions