What is identified by comparing demand and supply forecasts in human resource planning?

Comparing demand and supply forecasts in human resource planning is crucial for identifying net human resource requirements or manpower gaps. This process involves assessing the number of employees needed to meet an organization's strategic goals against the number currently available or projected to be available in the workforce. When there is a discrepancy between these two figures, it indicates a manpower gap. This gap can inform HR strategies, such as recruitment plans or training and development programs, to align the workforce with the organization's needs.

By understanding these gaps, HR professionals can implement effective workforce planning to ensure that the right number of employees with the appropriate skills are in place to meet future demands. This approach also helps organizations anticipate potential challenges related to staffing and develop proactive strategies to address them, ensuring operational efficiency and effectiveness.