Optimizing Workforce Forecast Accuracy and Timing
Evaluating forecast accuracy is essential in workforce management to improve forecasting processes, especially for hiring and staffing, which requires aligning lead times and forecast horizons to specific goals while maintaining consistent accuracy tracking.
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Evaluating forecast accuracy is crucial for assessing the effectiveness of the workforce management (WFM) forecasting process and uncovering areas for improvement. WFM typically generates several types of forecasts, including a long-term budget forecast, a hiring and staffing forecast, a scheduling forecast, and the a most-up-to-date forecast for intraday tactical planning.
Among these, the hiring and staffing forecast is particularly important. It must be developed with enough lead time to accommodate the recruitment, training, and onboarding of new employees. This forecast must also account for the timeline of sourcing equipment, workspace, and approvals. That could mean creating a forecast 45 to 60 days ahead, while still expecting to achieve a +/- 5% accuracy.
Since each scenario is unique, ensure that the lead time and forecast horizon align with the specific forecast purpose and the processes involved in your situation. In all cases, make it a priority to consistently track forecast accuracy.