Workforce Management 101: Introduction, Types, and Benefits
It's no easy task to keep your employees engaged and on task. It's true what they say about one bad apple spoiling the whole bunch. A poor hire can cost your company valuable workplace productivity, as well as nearly 20% of their salary on average. And those are just a few of the reasons why workforce management is so crucial.
Whether you work in IT, construction, or retail, learning the fundamentals of workforce management can be extremely beneficial.
What is Workforce Management?
Workforce management is the process of scheduling your employees in the most efficient way possible so that they can perform at their best. It's more of a company-wide process or team management software solution implemented from the top down than a single management style.
Do you have any employees who are morning people? Is it possible to schedule them for early morning shifts where they will interact with customers? Do you have any creative employees who work best in the afternoon or late evening shifts? Schedule them to work during their most productive hours.
Workforce management aims to take advantage of the fact that not everyone works in the same way, making your employees more productive and engaged. This reduces waste and keeps your company's output in line with its overhead costs.
A good workforce management system includes forecasting, monitoring, and analysis in addition to optimising staff schedules and time management plans.
Your workforce can be scheduled and assigned their appropriate tasks based on supply (your workforce) versus demand (the schedule). They can then be evaluated for efficiency and appropriately compensated for their work.
Types of Workforce Management Systems
Software for workforce management can be installed on-site, hosted in the cloud, or delivered as Software-as-a-Service (SaaS).
The majority of the time, spreadsheets are used to manage the workforce. However, a growing number of solutions, such as Customer Relationship Management (CRM) tools, ERP systems, and project management tools, are tailored to their industries.
Many project managers will also combine workforce management and project management through an application that will allow them to schedule tasks for their respective assignees, monitor resources, track employee time, analyse project costs, and report on status updates. Project Workforce Management is the term for this. It also combines the additional elements listed above, making it a powerhouse of a process that does more than just help allocate your workforce's time for projects.
What are the Benefits of Workforce Management?
Workforce management is one of those processes that not only aims to make your employees more efficient, but also to benefit them by allowing them to work on the processes for which they are best suited. As a result, customer service improves, resulting in increased output and profits across the board. It's a win-win-win situation.
With the rise of Enterprise Resource Planning (ERP) systems in the 1980s and 1990s, the process gained popularity, with large benefits from its use in industries such as healthcare, manufacturing, retail, and more.
But there's a new advantage to workforce management: as we move into the gig economy, many part-time workers are facing financial hardship because they can't find full-time work or have their hours reduced. Workers are hired as independent contractors in the gig economy and are paid by the project rather than by the hour or salary.
Many workers in the gig economy will have multiple jobs to juggle at any given time, putting a strain on their financial stability. When employees are under financial strain, their productivity suffers as well. For companies that use workforce management, this can help employees who are juggling multiple workloads by allowing them to plan their schedules ahead of time, just as you do. Your employees will be more productive if you can assist them in planning ahead and reducing financial uncertainty.
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