Here at Ento HQ, we talk a lot about workforce management, and how smart workforce management can so often be the competitive advantage a business needs. By 2025, Gartner predicts that 60% of midmarket and large enterprises will have invested in cloud-based human capital management (HCM) systems for their administrative HR and talent management needs. A key component of this HCM suite is modern workforce management software.
But what do we actually mean by this?
What is workforce management?
Let’s start with the basics
When we talk about workforce management, we’re talking about a series of processes that enable a business to run things at the individual, departmental and institutional levels.
It includes collecting and analysing many layers of data, such as:
- Payroll and benefits
- Employee self-services
- Data collection
- Talent management/tracking
- Training management
- Performance management
- Labour budgeting
With this data, a business can model what the company is capable of and what situations it can and can’t handle. It takes into account logistic, monetary and employee data to dictate what action a company should take.
Benefits of workforce management
When good workforce management practices are implemented, the information gathered can tell you the finer details of profit and loss – detailing expenses paid against earnings collected. This data can point out certain patterns to you that may go otherwise unnoticed, such as declines in sales when a certain employee is working, or an unaccounted-for loss of stock.
Dealing with so much data can be extremely daunting, but thankfully quality workforce management software is available.
Does good workforce management save money?
Workforce management programs help you streamline previously messy parts of your business. Automated employee time and pay modules decrease errors and makes interpreting complex awards and pay rules simple. A complete view of how you’re utilising your employees and their time helps you to roster more effectively – resulting in massive reductions to the labour cost average.
An automated workforce management system also results in better decision making. By using these programs, the manager has more control of data and context,giving them the ability to allocate the right people with the appropriate skills to a task at exactly the time they are needed.
This kind of efficiency has direct, positive effects on the ability of a company to react to various production goals, while maintaining substantial quality. Research has shown that a 4% increase in workforce utilisation occurs when companies implement WFM programs.
How does workforce management impact customer and business success?
Workforce efficiency is proven to have a direct impact on how consumers feel after dealing with a particular brand or company – companies that choose to strategically optimise their workforce through WFM see an 18% increase in customer satisfaction.
These programs also have a hand in reducing financial and non-compliance risks. Workforce management solutions enable companies to easily and effectively demonstrate compliance to local ordinances, union rules, individual employment contracts and so on. This drastically reduces non-compliance risks and any costs that may be associated with them.
The importance of workforce management in employee engagement
Last but not least (in fact this may be the most beneficial thing in this article), having good WFM systems in place increases employee morale. The efficiency, transparency and increased manager-employee communication improve feelings of openness in your employees, making them more engaged and enthusiastic about their jobs.
Additionally, the autonomous nature of working using WFM programs allows workers a sense of self-sufficiency and importance, increasing employees’ overall enjoyment in their work – which will inevitably increase their productivity.
Despite these benefits, most companies are only spending 1.5-3% of their budget on optimising their workforce management systems. However with the sheer volume of programs on offer that are made specifically for this task, and with the overwhelming benefits, there is really no reason to not implement these programs into your company as soon as possible.
Find out more about the benefits of Ento’s workforce management system by contacting us today.