Definition of Workforce Management
Modern and intelligent workforce management (WFM) software allows companies to flexibly adjust their staff planning to actual demand. Because: The retail sector isn’t the only one affected by things like seasonal fluctuations. Almost every other industry also needs to respond to changing circumstances. Only those who optimize their staffing and tailor it to their actual demand can avoid idle time or costly overtime, and operate efficiently.
↓ Definition: What is workforce management?
↓ What are the elements of a workforce management system?
↓ What role does workforce management play in the company?
↓ Goals of workforce management
↓ What are the benefits of workforce management software?
↓ 5 tips for workforce management software
↓ Why is customized workforce management so important?
↓ What is important when it comes to workforce management?
Definition: What Is Workforce Management?
Workforce management (WFM) refers to the optimization and efficient management of a company’s workforce or employees. Workforce management primarily ensures that the right employees with the right skills are in the right place at all times to meet operational requirements and demands.
An essential characteristic of a workforce management system is its holistic approach. The entire process of personnel management and optimization is considered as a whole and always follows a company-wide strategic approach that takes into account existing capacities as well as demand.
What Are the Elements of a Workforce Management System?
Comprehensive workforce management involves more than just staff planning. The underlying strategy encompasses much more and is based on a multi-level concept. The following activities and processes are the main components of a workforce management system:
- Staff requirement identification
- Staff structure optimization
- Capacity planning
- Staff planning
- Time recording
- Time management
- Staff monitoring
What Role Does Workforce Management Play in the Company?
Workforce management plays a crucial role in companies because it helps efficiently manage staff and make optimal use of existing employee resources. WFM supports not only the optimal scheduling of shifts, breaks, and activities according to demand, but it also helps minimize unnecessary personnel costs through the control and optimization of working hours. At the same time, it ensures compliance with working time regulations, legal requirements, and collective agreements and enhances employee satisfaction through modern forms of employee involvement.
The complexity of WFM shows how closely related such systems are to different areas of a company. Human resources are, of course, in the foreground in this context, but skills management and controlling are also areas of the company that come into contact with workforce management. Decisions and measures related to workforce management always have an impact on various business processes. For this reason, a holistic approach is important and appropriate. Modern and intelligent workforce management always considers the entire company structure and seamlessly integrates it into the adjacent processes of the company.
Goals of Workforce Management
The primary target of workforce management is to make the best possible use of personnel capacities. Personnel capacities need to be aligned with the workload to meet company requirements. At the same time, WFM places great value on agility and flexibility so that it can respond swiftly in the case of events like sudden fluctuations in demand or employee absence.
The goal of WFM is, therefore, the absolute synchrony of workload and personnel capacities. Modern workforce management can precisely forecast the expected staff requirement and optimally distribute existing personnel capacities to individual services and tasks. With the help of AI technologies, it is automated, fair for the employees, and results in nearly perfect outcomes.
What Are the Benefits of Workforce Management Software?
The use of a professional workforce management system offers numerous benefits for companies. Larger companies with a high number of employees and complex structures, in particular, will eventually need a professional workforce management system if they want to remain competitive. The following advantages are compelling arguments in this regard:
- Flexibility in the case of demand: With a WFM system, you can respond and readjust quickly if the requirements in the company suddenly change, whether due to seasonal fluctuations or new market trends.
- Cost control: With WFM, you can plan and monitor working hours and personnel costs. Additional costs, such as unnecessary overtime, are avoided.
- Increased productivity: WFM allocates staff, services, and tasks more efficiently. This reduces things like idle time and increases productivity.
- Forecasting staffing level: With suitable workforce management, the need for future employees can be predicted. This ensures the right number of employees is always available, and bottlenecks and understaffing are avoided.
- Reduced turnover: Among other things, WFM can take into account employee preferences during shift scheduling. Employees can participate in the scheduling process themselves, which contributes to satisfaction and retention.
- Higher employer attractiveness: Consideration of employee working hour preferences and an automated fair distribution of shifts and tasks positively contribute to employer attractiveness.
- Higher customer satisfaction: Existing personnel resources are used efficiently and fairly. This results in avoiding overload while ensuring enough qualified personnel are available to handle the workload.
5 Tips for Workforce Management Software
Workforce management is a company-wide subject that requires commitment and interest, along with a suitable software solution. Specialized workforce management software can simplify and optimize time management, staff planning, and all other components of WFM. Keep these five short tips in mind:
- Compare different WFM software solutions.
- Invest in employee training to fully utilize the potential of WFM software.
- Ensure that the functionality meets your requirements.
- Integrate WFM software into your company processes.
- Consider using a customized software solution for workforce management.
Why is Customized Workforce Management So Important?
Every company is unique. While there are industry-specific commonalities, individual requirements still exist. The best solution is workforce management software that accommodates all company requirements and optimizes various processes. Modern WFM systems bring a significant portion of functionality within a standardized solution. In addition, some reputable WFM providers offer the option to adapt the software to the specific guidelines and regulations of the company.
What Is Important When It Comes to Workforce Management?
In the context of workforce management, the focus is primarily on staff planning and optimization. This is intended to simplify processes and enhance efficiency. HR managers also need to consider various regulations, including:
- Working Hours Act
- Minimum Wage Act
- Part-Time and Fixed-Term Employment Act
- Works Constitution Act
Determining current staffing levels, as well as forecasting future staffing requirements, is a fundamental aspect of workforce management. Capacity planning, analysis of working hours, controlling, staff planning, and work time management are the pillars of holistic WFM. With the help of suitable software, not only can rosters and shift schedules be created, but staff planning can be optimized overall. With plano WFM, we have a comprehensive and proven workforce management system in place for demand-optimized staff management. Whether it’s time recording, time management, self-service apps for employees, staff planning, or demand identification:
With plano WFM, workloads and working hours are sensibly and fairly aligned. Economically valuable and user-friendly. For small businesses or large corporations.
If you want to know how your company can benefit from workforce management, feel free to contact us.
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