Forecasting the Future:
How Sri Lankan Companies Win with Smart Workforce Planning
From HR analysis perspective, have you ever known how organisations
determine how many employees they need for the upcoming years or how the
organisations get ready for their busy seasons? The solution is workforce
forecasting. It is an effective tool which helps for business planning. As the
economy of Sri Lanka experiences rapid transformation, effective workforce
planning is becoming more crucial than ever.
Let's see how this concept is being used and why it matters in today’s fast changing business world.
What is Workforce Forecasting?
Forecasting the workforce is estimating the number of
workers a business will require in the future, as well as the skills and
locations in which they will be required.
Dessler G. (2019) suggests that workforce forecasting improves organisations in
several ways:
- Avoid having excessive or not enough employees.
- Develop programs of training for employees.
- Budget for salary costs.
- Be prepared to face changes in the market.
Figure 1: Steps in Recruitment and Selection Process [Source: Dessler G.- Fundamentals of Human Resource Management (2019) PP.144]
See this YouTube video for more information.👇
Let's discuss three main approaches that companies take for
predicting their staff requirement.
This method makes estimates using calculations and numbers. Trend analysis is a common technique that predicts all future events to come by looking at past trends (Dessler G. (2019).
For example, on a hotel in colombo to estimate the number of workers they will require this year they might look at the number of guests they had each month the previous year.
Ratio Analysis
This method means estimating the employment needs based on historical
ratios.
For example, sales volume and the number of sales staff
ratio
The Scatter Plot
From this method we used charts on a graph to identify the
behaviour of two variables and based on that, we can decide the future potential
(Dessler, G. (2019).
Let's see the World employment and social outlook 2025
published by ILO. 👇
Other than that, we can use the below techniques too
(Lalithadeera K.2021).
- Econometrics model
- Regression analysis
- Focused group discussion
- Managerial judgment
- Workforce survey
- Job vacancy analysis
Workforce Forecasting in Sri Lanka: Current Practices
According to the research conducted by Jayalath, J. (2011) this is how labour market flows in developing countries.
Figure 2 : Source Human Resource Demand Forecasting -Sri
Lankan Experience by Jayalath,J (2011)
According to the analysis of TVEC 2023 here is the percentage distribution of job advertisement in the selected industries in Sri Lanka.
Figure 3: Source from LMI Bulletin December 2023- TVEC
Challenges in Sri Lankan Context
Businesses in Sri Lanka have particular difficulties when
predicting their workforce. These are some reasons that organisations face challenges
when they do an estimate.
- Recent economic challenges make predictions difficult.
- Finding workers with the right skills is a challenging one.
- Many skilled workers leave for jobs abroad.
- Technology is replacing some of the human work.
Conclusion
Organisations in Sri Lanka benefit from workforce
forecasting since it helps them anticipate future demands. Effective planning
is even more crucial in the increasingly uncertain economic world.
Organisations may take informed decisions regarding hiring, training, and
managing their workforce by utilising both data and professional perspectives.
Planning for your workers in advance will help them succeed, regardless of how
big or small they are.
References
Gary, D. (2020) Fundamentals of Human Resource Management
5th edition. Pearson Education Limited PP 147-155 [Online] Available at https://books.ms/main/3FB756A9C0EB9656D1C755FF686E09D1.
Accessed on 14th March 2025.
Jayalath, J. (2011) Human Resource Demand Forecasting -Sri
Lankan Experience. ResearchGate. [Online] Available at https://www.researchgate.net/publication/361732582.
Accessed on 14th March 2025.
Lehindu, A. and Wijesooriya, S. (2020) Future of the
Workforce in Sri Lanka - What lies ahead post COVID-19, ResearchGate[Online].
Available at https://www.researchgate.net/publication/359893454_Future_of_the_Workforce_in_Sri_Lanka_-_What_lies_ahead_post_COVID-19.
Accessed on 15th March 2025.
Lalithadeera, K.A. (2021) Direction for future-ready
workforce: Global and local, Dilay FT. [Online] Available at https://www.ft.lk/columns/Direction-for-future-ready-workforce-Global-and-local/4-712269.
Accessed on 15th March 2025.
Labour Market Information Bulletin, BI-Annual publication of
TVEC, Volume 02/’23 December 2023 [Online]. Available at https://www.tvec.gov.lk/wpcontent/uploads/2024/12/LMI_Bulletin_2023_V3E.pdf.
Accessed on 15th March 2025.
ILO (2025) ILO Flagship Report, World Employment and Social
Outlook Trends 2025 [Online]. Available at https://www.ilo.org/sites/default/files/2025-01/WESO25_Trends_ExecSum_EN.pdf.
Accessed on 15th March 2025.
Sri Lankan companies need workforce planning as their main instrument to compete effectively within a.n evolving business environment.The growth of AI together with automation and remote work environments demand companies to establish data based strategies that forecast their skill gap needs and workforce requirements.
ReplyDeleteVery comprehensive article.Effective work force forecasting plays a vitol role in achieving organizational goals.This approach paves the path to mitigate the risk of employees shortages,non performing teams,knowledge gaps and frustration among existing workers.
ReplyDeleteWorkforce forecasting is indeed crucial for businesses in Sri Lanka, especially given the current economic uncertainties and talent migration. Organizations need to strike a balance between technology adoption and skill development to retain and attract the right talent. Leveraging data-driven insights along with expert perspectives can help businesses make informed decisions and stay resilient in this evolving landscape. Great insights on the challenges and importance of workforce planning!
ReplyDeleteWorkforce forecasting is becoming essential for businesses in Sri Lanka, especially as the economy and job market evolve. It’s insightful how data-driven methods like trend analysis and ratio analysis can help companies plan for future talent needs. However, challenges like skill shortages and the impact of technology on jobs must be considered in the planning process. This kind of strategic HR planning is crucial for staying ahead in a competitive and unpredictable environment.
ReplyDeleteYou've well explained smart workforce planning strategies in your blog post. As per my perspective workforce forecasting is crucial since it helps them anticipate future demands. I appreciate the detailed insights on this. Looking forward to more content like this!
ReplyDeleteIllustration of how candidate become employee in contexts of workforce forecasting makes sure that the right number of employees with the necessary skills are available, preventing overstaffing or shortages.
ReplyDeleteWorkforce forecasting is becoming more and more crucial for Sri Lankan businesses as they navigate a rapidly changing economy. By using smart methods to predict staffing needs, companies can avoid the pitfalls of being overstaffed or understaffed, while also controlling costs. However, challenges like economic instability, skill shortages, and tech replacing certain jobs make these predictions tricky. That said, companies that take a proactive, data-driven approach to workforce planning will be better equipped to adapt and stay ahead in a constantly evolving market.
ReplyDeleteThis is a great perspective on workforce forecasting in Sri Lanka. By leveraging data and expert insights, organizations can stay ahead of future challenges and ensure they have the right talent in place. Effective planning not only optimizes hiring and training strategies but also ensures workforce alignment with long-term goals. This approach can significantly enhance organizational resilience, adaptability, and overall success, especially in today's unpredictable economic environment.
ReplyDeleteGood article on how workforce forecasting is important for a company to maintain their HR pool according to the business needs. Among the techniques you have discussed here the manajerial judgement is the common one that most of the companies use for their HR forecastings.
ReplyDeleteGood insight. Workforce forecasting is crucial for Sri Lankan organisations to anticipate future demand. By leveraging data and expert advice, they can make better decisions on hiring, training, and workforce management.
ReplyDeleteWorkforce planning is no longer just a buzzword.it's a necessity in today's violatw bussinesa envirnment.companies in Sri Lanka and across the globe are recognizing that talent gaps.inefficient resource allocation,lack of future ready skills are no longer issues they can ignore.
ReplyDeleteForecasting helps Sri Lankan businesses plan better for future challenges and opportunities.
ReplyDeleteYour article provides a comprehensive analysis of workforce forecasting, highlighting its significance for Sri Lankan companies amid economic transformations. The discussion on quantitative methods, such as trend analysis and ratio analysis, effectively illustrates practical approaches to predicting staffing needs. Addressing challenges like economic instability and skilled labor migration adds depth to the discourse. Overall, your insights offer valuable guidance for organizations aiming to enhance strategic workforce planning.
ReplyDelete