(Solution) CIPD 5HR02 (AC2.2) Evaluate the techniques used to support the process of workforce planning

Solution

Tool 1: Workforce Supply and Demand Forecasting

Predicting future staffing needs (demand) and how much internal and external labour one can expect to have available (supply) is known as workforce supply and demand forecasting. (Public Service Commission, 2023). It enables to see where there may or may not be shortages or surpluses in jobs or skills within the organisation.

This technique proves to be very efficient for operational planning and the long term strategy. It enables Important Parcel and other organisations to make educated guesses about where more people will be needed and where some retraining and redeployment could obviate redundancies.

Advantages:  By predicting, things can be decided better, personnel costs can be lower, and a company can be more prepared for anything that could alter its direction (Towe, 2025). It supports recruitment, succession planning, and targeted training.

 Limitations: Forecasting relies heavily on accurate data. Poor performances from predictions can occur due to inaccurate or incomplete information, thereby causing under or over staffning.

Evaluation: For ImportantParcel, this method could prove very helpful as they can have this method provide them high demand periods like holidays so they can be prepared sufficiently. But its success relies on having access to up to date historical data and close cooperation between departments.

Tool 2: Skills Gap Analysis Skills gap analysis is the analysis

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