Which statement describes a supply forecast in workforce planning?

Which statement describes a supply forecast in workforce planning?

• A. A supply forecast estimates the number of employees available internally and externally to meet demand, accounting for retirements and resignations.
• B. A demand forecast predicts the number and types of employees needed to achieve organizational goals.
• C. An internal forecast uses external labor market trends and hires.
• D. A balanced workforce plan is not connected to business strategy.

Answer: (A)

In workforce planning, a supply forecast estimates the talent you will have available to meet future demand. It looks at both internal sources (current employees, expected promotions, transfers, retirements, resignations) and external sources (the labor market) to project how many people will be usable and when. This helps determine whether you’ll have enough people to meet organizational goals and informs recruiting and retention efforts to fill gaps. The other statements mix up concepts: predicting how many and what kinds of employees are needed to achieve goals describes the demand forecast, not supply. Saying an internal forecast uses external labor market trends and hires confuses internal availability with external factors. And a balanced workforce plan is indeed connected to business strategy, not separate from it.

In workforce planning, a supply forecast estimates the talent you will have available to meet future demand. It looks at both internal sources (current employees, expected promotions, transfers, retirements, resignations) and external sources (the labor market) to project how many people will be usable and when. This helps determine whether you’ll have enough people to meet organizational goals and informs recruiting and retention efforts to fill gaps.

The other statements mix up concepts: predicting how many and what kinds of employees are needed to achieve goals describes the demand forecast, not supply. Saying an internal forecast uses external labor market trends and hires confuses internal availability with external factors. And a balanced workforce plan is indeed connected to business strategy, not separate from it.