5-1. Recruitment and selection start with workforce planning and forecasting. Workforce planning is the process of deciding what positions the firm will have to fill, and how to fill them. This often starts by forecasting personnel needs, perhaps using trend analysis, ratio analysis, scatter plots, or computerized software packages.

Next forecast the supply of inside candidates. Here employers use manual systems and replacement charts and computerized skills inventories. Forecasting the supply of outside candidates is important, particularly when good candidates are more difficult to come by.