Which step in human resource planning (HRP) would you use to develop a company staffing strategy for the next three years to address attrition?

• A. Forecasting
• B. Job analysis
• C. Compensation planning
• D. Succession planning

Answer: (A)

Forecasting in human resource planning is about predicting future staffing needs based on data like past attrition, business growth plans, and workload trends. When you’re developing a three-year staffing strategy to address attrition, you use forecasting to estimate how many employees you’ll need and when, considering how many people are expected to leave and what turnover you can expect. This creates a target headcount and timeline, which then informs recruiting, retention, and development actions to close the gaps.

Other activities serve different purposes: job analysis defines what each role requires; compensation planning focuses on pay structures to attract and retain staff; succession planning looks at identifying and preparing internal candidates for key roles. While valuable, they don’t directly project future headcount and timing to address attrition over several years, which is the core function of forecasting.