A public-sector bank forecasts that over the next five years a large proportion of its branch managers will retire. At the same time, the bank anticipates that several branches will be converted into digitally intensive service centres. The HR department therefore needs to determine not merely how many employees will be required, but also the competencies and positions that will become critical. Which HRP approach would be most appropriate?

The situation involves both future vacancies due to retirement and changes in the nature of jobs because of digitalisation. A replacement chart can identify potential internal successors for critical positions, while competency-based workforce forecasting identifies the skills required for future roles. Why others are wrong: A: Historical trends cannot adequately capture technological changes. C: Employee-to-branch ratios ignore changing skill requirements. D: Managerial judgment alone can be subjective. E: Succession planning without analysing changing job requirements may prepare employees for obsolete roles. Exam insight: When a question combines retirement + technological change + future competencies, think beyond numerical HR forecasting.