Whether it’s social media giants and Silicon Valley start-ups or local franchises and flourishing SMEs, employees are always expensive. So much so that the Human Capital Management Institute estimates that when factoring in salaries, overtime, indirect compensation and other expenses, employee reimbursement represents a huge 70% of an organisation’s total operating costs.
Why then, does the latest study from IMS Research and Gartner reveal that just 1.5-3% of enterprise software budgets are channelled into workforce management solutions? The answer? Workforce management is one of the most underrated concepts in the corporate world.
The benefits on offer are immense, which means all businesses should be exploring ways to leverage workforce management solutions. So, what could workforce management do for your business?
Workforce management, defined
To understand the benefits, it’s essential to develop an in-depth understanding of what workforce management actually entails.
The practice is more than simply hiring staff and drafting up rosters, workforce management describes the purpose-built systems that exist to:
- improve workforce utilisation
- reduce labour costs
- minimise absenteeism
- improve satisfaction
- augment business performance.
As firms start to put together their IT budgets for 2017, they should think about how workforce management solutions can unlock the following benefits:
Manually calculating time, pay, and other wage-related tasks can chew up a huge amount of time.
Instead, workforce management software will automate the process and ensure that even the most complex of rules is seamlessly adhered to.
You’ll minimise errors, increase accuracy and eliminate the stress of manually managing the payroll process.
Reduce labour costs
For most businesses, the cost of labour represents an enormous slice of the profit pie.
Workforce management software is used to predict trends and patterns, which can in turn be used to increase the efficiency of your organisation’s schedule.
Workforce management solutions are also organisational gold when it comes to precisely matching the number of workers to the demands of the business.
Furthermore, digitising time, scheduling, performance and absenteeism functions empowers businesses with an in-depth overview of their labour activities, which can unlock new ways to effectively improve performance.
The stats speak for themselves, with research from Aberdeen Group confirming that optimised workforce management strategies save organisations 33% on unplanned overtime.
Boost customer satisfaction
Research confirms that customer satisfaction and workforce efficiency are intrinsically linked.
From answering queries and solving problems to delivering a stellar customer experience, workforce management plays a central role in keeping customers sweet.
Want proof? The Aberdeen Group reports that businesses powered by optimised workforces enjoy an 18% year-over-year improvement in customer satisfaction, as opposed to just 9% for all other companies.
Make better decisions
A key function of workforce management software is using data to make better point-in-time decisions. As well as collecting the data itself, workforce management software helps managers put these findings into a relevant context.
As a manager, you can then use results to create strategic rosters that feature the right people, at the right time, with the right skills, at the right cost. This dynamically improves workforce utilisation, which gives a business serious edge when it comes to boosting productivity.
Australia is strict when it comes to protecting its employees, which means compliance obligations can be complex.
Workforce management software reduces the risks associated with non-compliance, and helps businesses meet compliance obligations such as:
- National laws
- Union rules
- Regional ordinances
- Company policies
- Individual employment contract terms.
Building employee morale
By improving manager-employee communication, addressing issues and increasing transparency, automated workforce management solutions actively build staff morale.
In the US, Gallup estimates that every year, the nation’s 22 million actively disengaged employees cost the economy more than US$300 billion in lost productivity.
From employee surveys to performance reviews, workforce management software helps companies understand the needs and wants of the people that power their business.
Self-serve systems are now adored by blue chips and SMEs alike, with programmes empowering staff with the ability to request process, shift-swap, change contact information, manage payroll and more.
From minimising labour costs and making better operational decisions to maximising productivity and improving staff morale, workforce management software is a bona fide way to support your business goals.
Learn more about what Ento’s workforce management solution can do for your business today and enjoy increased efficiency in your workforce management today.