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.