A successful talent management program begins with a forecast of human capital needs (D). At the SPHR level, talent management is a strategic system, not a collection of disconnected HR practices.

Forecasting human capital needs aligns talent strategies with business direction, growth plans, retirements, and capability requirements. This forecast determines what skills, roles, and leadership capacity will be needed in the future, guiding recruitment, development, succession planning, and workforce investments.

Assessing potential (C) and evaluating performance (A) are critical components, but they are meaningful only after future demand is understood. Internal promotion strategies (B) are solutions that flow from workforce forecasts, not starting points.

SPHR exam content consistently reinforces that strategy precedes talent processes, making demand forecasting the foundation of effective talent management.

References :

HRCI SPHR Exam Content Outline — Functional Area: Talent Planning and Acquisition (talent management; workforce forecasting).

HRCI SPHR Study Guide — Strategic talent management frameworks.

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