At a more practical level, forecasting demand involves determining the numbers
and kinds of personnel that an organization will need at some point in the future. Most
managers consider several factors when forecasting future personnel needs. The demand
for the organization’s product or service is paramount. Thus, in a business, markets and
sales figures are projected first. Then, the personnel needed to serve the projected
capacity is estimated. Other factors typically considered when forecasting the demand
for personnel include budget constraints; turnover due to resignations, terminations,
transfers, and retirement; new technology in the field; decisions to upgrade the quality of
services provided; and minority hiring goals