Although forecasting is rarely exact, many still see it as a vital tool for organizations to utilize.  What suggestions would you make to improve forecasting if the results were way off?  What if forecasting led the organization to over staff by 20 people, now they are faced with lay-offs.  How could something like this be prevented?


Forecasting is a part of strategic staffing.  It involves evaluating current and future staffing needs.  There many factors that can affect a firm’s labor demand.  Being aware of these factors and how they affect the labor supply and demand can help an organization be prepared.  Employers should be mindful to forecast both their internal and external labor needs.  While forecasting is not exact, it can help organizations be prepared to meet their business goals.  Forecasting is a process that with details that will need to be revised from time-to-time. (Phillips & Gullly, 2015)
Without forecasting, employers would be left to their best guesses.  They would not have statics to backup their desires to hire new employees.  Employers may be shocked to find out that 20% of their workforce plans on retiring within three years.  There are different tools used that helps employers be aware of their staffing needs. (Phillips & Gullly, 2015)
Some companies have a high level of growth in as short amount of time.  The employer may not know if the growth is a temporary demand or if it will be sustained.  Because the employer wants to meet expectations, they may hire contingent employees.  These employees are temporary and could become regular employees if business needs them long term.  Employers often use contingent employees to avoid having to lay off employees at a later time.  Companies that have seasonal needs will often use contingent employees as well. (Phillips & Gullly, 2015)
Phillips, J. M., & Gully, S. M. (2015). Strategic staffing (3rd ed.). Upper Saddle River, NJ: Prentice Hall.

Forecasting is not exact, but the results are divided into three categories, depending on how likely they are to happen: low, probable and high estimates. Although not exact, the events that find themselves in the high estimates category are very likely to happen. Forecasting helps determine various patterns in staffing, needs that the employees have and more. It can also be used to determine various long-term needs of a company, especially when it comes to recruiting, training and promoting various employees. By better understanding the current needs and the future needs the company or the employees may have, blockages and an increase in the turnover rate can be avoided. Some of the factors that the company has to consider are internal ones (current staffing ratios, turnover rates) and external ones (the economy as a whole, the competitors and more).
Contingent workers can analyze the past and present of a company and provide estimates for the future. At the same time, contingent workers can be hired temporarily and fulfill the positions that are vacant. This helps the company avoid having to hire employees, train them only to let them go sometime later because they fulfilled their role within the company.


The income statement, statement of retained earnings, balance sheet and statement of cash flow are related because you cannot complete most of these statements without using one of the others. You cannot get an accurate read on a company if these statements do not all match up. They all feed into each other to make each statement complete. Without the income statement the statement of earings would not be accurate or able to be calculated because you need to know what kinds of profits and losses a company is having. The balance sheet is exactly as it sounds and without the income statement or the statement of earnings you cannot balance out the business account and then there is no way to figure out how to see an accurate picture of the cash flow in the company. For a complete overview of the financial health of a company you need to have all of these statements balance and match each other.

If I was an investor I would want to see the statement of earnings and the balance sheet. The balance sheet will show me what the company s doing in all areas and where they are successfull or unsuccessful. The statemet of earnings will allow me to see how the money is coming in for the company and if it is sustainable or not. They are all important however if you want to make an decision and invest your money into a particular company. No one wants to lose their money by making a poor decision because they did not take the time to look through these statements.

Each financial statement by themselves on reports parts of a business’s finances.  The financial statements combined together provide a complete report of the finances.  The financial statements identify a company’s strengths and weaknesses to assess whether the company is a good investment or credit risk.
As an investor, I would like to see that the company is able to pay debt and dividends.  As an investor I would look at the income statement that shows revenue and profit, then I would look at the cash flow statement which tells outlook of the company and have no risk of running out of cash. Last as an investor, I would look at the balance sheet which will show if the revenues are strong or weak.  I want to see that the company is making money and that the company has the ability to pay debts and still show a strong profit.