What is 'Forecasting Accuracy' in workforce management?

Forecasting accuracy is defined as a measure of how closely forecasts align with actual contact volumes. In workforce management, accurate forecasting plays a crucial role in scheduling and staffing by predicting the expected number of contacts that an organization will receive. This alignment between forecasted and actual contact volumes allows managers to optimize agent staffing levels, ensuring that there are enough employees available to handle demand without overstaffing.

When forecasting accuracy is high, it means that the organization's predictions are reliable, which can lead to better resource allocation and cost management. On the contrary, if forecasting accuracy is low, organizations may face issues such as having too many agents during low-traffic periods or not enough agents during peak times, leading to longer wait times for customers and increased workload on agents.

Thus, the emphasis on the close alignment of forecasts with actual data makes this concept a cornerstone of effective workforce management practices.