Requirements Forecast

Optimizing workforce forecasting

Inaccurate requirement forecasts will incur errors in workforce management – resulting in over- or understaffing and inefficiencies. While overstaffing is associated with increased personnel costs, understaffing will have different consequences according to the given industry or sector. In retailing, for example, service levels will suffer, resulting in lower conversion rates and lost sales. In logistics, delivery bottlenecks typically occur, resulting in customer dissatisfaction, increased return rates and lost sales. Whereas in manufacturing, understaffing can lead to machine downtimes – and even to complete production halts as the worst-case scenario. Consequently, workforce forecasting to a high degree of forecasting accuracy is particularly crucial across all industries and sectors.

Better personnel requirements planning – including the inevitable fluctuations

In many instances, the workforce schedules and duty plans presuppose rigid, constant demand. In reality, however, personnel requirements fluctuate strongly – even on an annual, monthly and daily basis. This volatility impacts on companies of almost any size, in virtually all sectors and industries.

A manual forecast of actual demand is highly complex due to various and changing demand drivers. Without systematic IT support, this is only possible at great expense and input, and is therefore the exception rather than the rule in actual practice.

Improving forecasting quality – sustainably

In a complete re-determination of personnel requirements, it is of fundamental importance to identify the right parameters for the analysis. The better the selection of demand drivers, the more accurate the forecast of optimal personnel deployment will be. A software tool simplifies this process considerably. If your company already uses workforce forecasting software, the existing and already considered demand drivers as well as used performance indicators must be continuously checked and adjusted. In times of volatile markets, demand drivers also change regularly.

Better planning thanks to more accurate forecasts opens up greater scope in personnel management and planning, while reducing the time pressure to compensate for over- and understaffing. Moreover, employees can be informed about additional shifts and shift cancellations at an early stage – benefitting everyone involved: Greater employee satisfaction goes hand in hand with lower sickness rates and greater overall productivity.

High-precision workforce forecasting

Demand drivers, forecast periods, trend factors, reference days and adequate performance indicators all determine the quality of workforce forecasting. Only if all of them are chosen correctly, will optimal workforce scheduling be possible. This is precisely where the experts at ATOSS Consulting enter the picture in analyzing the forecast of your personnel requirements and adapting it precisely to your company. Experience gained to date shows that forecasting accuracy can be elevated by up to 30% – and with it productivity and profitability. Place your trust in over 30 years of extensive experience and the in-depth know-how that our consultants have amassed in around 8,000 projects.

 

Michael Knoblauch

Contact

Are you looking for expert consultation? I would be pleased to help.

Michael Knoblauch
Director ATOSS Consulting

T +49 89 42771345
E consulting@atoss.com