Demand analysis identifies the future workforce requirements needed to maintain the organization’s
mission and goals. The end result of a demand analysis is the identification of the required
number of employees in an organization and the necessary functions that the employee must perform
to meet organizational objectives. In HR planning, labour demand is determined separately
from supply estimates because it facilitates a re-examination of embedded assumptions about the
labour force. As well, different variables affect demand analysis. Due to the high number of factors that influence demand, demand is often more difficult to predict than supply.