Rolling Forecast in HR

Why precise planning of personnel capacities and costs is so important

The planning and control of future staffing levels and associated costs is of great importance. The introduction of a Rolling Forecast helps to get a realistic outlook on future developments and creates great advantages for the company.

Why should a Rolling Forecast be used in HR?

Personnel costs represent one of the largest cost blocks for many companies. It is therefore particularly important to always have a precise overview of the costs to be expected. The planning phase of staffing levels and the associated costs often extends up to half a year. Any assumptions made are then usually already outdated before the planning is completed. Changes in the market situation and the regulatory environment are often incorporated into the planning too late and this can lead to immense discrepancies between the planned and actual development of personnel costs. This can be counteracted by introducing a rolling forecast in the HR department, which gives the HR department a realistic outlook on future developments.

What added value does the Rolling Forecast offer to HR departments?

The rolling forecast methodology has great potential not only for sales. The rolling planning approach can also be applied to the HR department and becomes a dynamic forecasting process for personnel costs and inventory. By comparing planned and forecast developments on a quarterly basis, deviations can be identified at an early stage and transparency created so that appropriate countermeasures can be initiated in good time. The annual planning process should not be replaced, but rather expanded in an advantageous way. The personnel department thus becomes a strategic and innovative consultant for future-oriented personnel decisions.

What should be taken into account during the introduction?

In the beginning, it must be ensured that the methodology for preparing a rolling forecast is uniform and standardized throughout the company. This is the only way to create a centralized reporting system that provides a transparent overview of personnel and structural changes and their effects on personnel costs, and to perform appropriate scenario analyses. Rolling Forecast makes it clear what influence personnel decisions have on financial and cost planning in other departments and ensures closer cooperation.

How can a Rolling Forecase be successfully implemented?

For a successful implementation, it is important to think about an adequate IT tool at an early stage in order to avoid high IT costs and to carry out the implementation as cost-effectively as possible. In addition, such a project entails a high level of effort, so that implementation requires a structured and goal-oriented approach. This is the only way to ensure that the effort and the associated personnel costs are kept as low as possible. IT budgets and personnel costs for project management should always be kept in mind. Another important point is the readiness of the personnel department for a cultural change. The increased transparency in the personnel area in the future as a result of the Rolling Forecast must be wanted and accepted. In order to simplify the Rolling Forcast model for the users, the complexity through division structure and level of detail should be well thought out and known to all.

Our consulting services and how 4C can support you in the introduction of a rolling forecast?

We support you in the introduction of a rolling forecast in your personnel department from planning to implementation. We advise you on the right choice of an IT tool and ensure a targeted project management to keep the effort and costs for implementation as low as possible. The aim is to position the HR department as a business partner for headcount and cost planning with the help of a rolling forecast.

If you would like to know more about the successful introduction and implementation of a rolling forecast, please contact our expert

Our expert for Rolling Forecast in HR

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Dr. Heiko Mauterer

Senior Partner

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