Demand forecasting

Demand forecasting (in shift work): Predicting staffing needs based on expected workload.

Demand forecasting

Predicting staffing needs based on expected workload helps organizations optimize workforce allocation in order to smoothly balance service delivery with labor costs.

What is demand forecasting

Demand forecasting in the realm of shift planning is a vital tool that allows HR managers to accurately anticipate staffing needs. It involves analyzing historical data, market trends, and seasonal variations to predict how many employees will be required at any given time.

For example, a retail store might see a spike in customers during the holiday shopping season, requiring more staff during peak hours. But during off-peak times, fewer employees may be sufficient. Effective demand forecasting ensures that organizations have the right number of staff in place to meet customer needs. This will prevent both overstaffing and understaffing.

Overstaffing can lead to unnecessary labor costs, while understaffing risks customer dissatisfaction and employee burnout. However, relying solely on past trends without considering upcoming events or shifts in consumer behavior is a pitfall to avoid. Don’t just look at historical sales data. Tap into industry insights and be aware of local events that might influence customer footfall. Also communicating with team members about scheduling and potential changes in workload can enhance your forecasting accuracy.

Demand forecasting isn’t just about crunching numbers. It’s about connecting the dots in a way that makes sense for your specific workload and workforce. Remember, it’s a dynamic process, and being flexible to adjust forecasts as new information comes in will serve you well in maintaining an efficient and happy workforce.

Best practices

• Utilize historical data to identify trends over time; it gives a solid foundation for your predictions.
• Engage your team in discussions about upcoming events or changes that may influence customer demand; their insights can be invaluable.
• Regularly review and adjust your forecasts based on real-time data; flexibility will keep you responsive to shifts in workload.

Common pitfalls

• Neglecting to consider external factors can lead to inaccurate forecasts; always factor in local events or economic shifts.
• Relying solely on historical data without adapting for future circumstances can mislead staffing decisions; stay agile in your approach.
• Failing to communicate with your team about forecast changes can create confusion. Involve them in the planning process to ensure alignment and clarity.

How we can help

With so many options available, it’s essential to find a solution that matches your unique needs. We’re dedicated to building a very simple self-scheduling software, Zelos Team Management. It’s great for on-demand shift work, and leaves you with excellent data even with hectic schedule changes.

Sign up for a free account on our website and see whether our shift reports could be an easy data source for your demand forecast .

Shift work glossary