If a later assessment of the releva

If a later assessment of the relevant factors suggests that the assumptions need to be changed, the forecast can be altered and made more sophisticated. Although a simple five-year forecast may be slightly inaccurate, it can help an organization plan for the future. The major benefit of such a forecast is realized when the information regarding human resource needs becomes translated into action plans influencing other areas of the organization.Turnover AnalysisThe accuracy of employment forecasts depends heavily on the accuracy of turnover forecasts.Knowing how many employees are expected to leave is as important as knowing how many new positions will be created.Two processes are involved in estimating turnover levels: collecting historical information and analyzing economic trends. For most organizations, the turnover rates of previous years are the best indicators of future turnover. Consequently, an organization should collect historical information on the turnover levels for each year and analyze how they have changed separate turnover statistics should be computed for each job category, and these estimates should then be adjusted for unusual economic conditions. Changes in unemployment rates usually cause inverse fluctuations in turnover rates-as unemployment goes up turnover goes down.