Workforce management describes the processes used to allocate employees and resources to optimise productivity, reduce risk and remain compliant.
People tend to view a company’s success as dependent on how well it manages external interactions – specifically, creating effective products, offering valuable services and maintaining positive customer relationships. But while these front-end processes are vitally important, they do not represent the entire equation for business success. Internal processes, interactions and strategies play essential roles in determining how effectively an organisation can meet customer demands while pivoting to address changing markets and other circumstances. And of these essential internal processes, often those that have the greatest potential impact are the ones that involve the company’s most crucial resource: its employees.
Employees bring with them the skills and experiences that they rely on to perform their assigned tasks, but before they can be put to optimal use, they require direction. Workforce management (WFM) allows organisations to take a strategic approach to allocating employees, along with the essential resources that those employees depend on. When implemented correctly, WFM empowers organisations with a more intentional and goal-aligned approach to resource (and human-resource) distribution.
Effective workforce management software encompasses talent acquisition, skills development, performance management, scheduling, time tracking, labour forecasting and compliance with labour regulations. It also addresses the challenges of managing distributed teams and facilitating remote work. By integrating these components, organisations can create an agile and adaptable workforce that is capable of meeting market demands and achieving organisational goals. These benefits extend beyond operational efficiency, impacting employee satisfaction, retention rates and cost optimisation.
More specifically, an effective approach to WFM can provide:
Effective WFM software enables organisations to gain valuable insights into essential business metrics. By utilising advanced WFM tools and technologies, organisations can accurately determine the exact number of employees required to complete specific tasks or projects. This data-driven approach ensures optimal staffing levels, preventing overstaffing or understaffing scenarios that can negatively impact productivity and cost efficiency.
Moreover, WFM systems provide real-time visibility into employees’ daily performance. Through automated tracking and reporting features, organisations can monitor and measure individual and team productivity, identify areas for improvement and make informed decisions to optimise resource allocation. This data-driven approach helps organisations to identify top performers, reward exceptional contributions and address performance issues promptly, fostering a culture of continuous improvement.
Workforce management plays a critical role in aligning policies across the entire organisation. By establishing consistent policies and procedures, WFM eliminates inconsistencies that can lead to increased costs, staffing shortages, workplace safety incidents and production inefficiencies. Additionally, workforce management allows organisations to stay up to date more effectively on evolving workplace and employment laws, ensuring regulatory compliance.
A well-implemented workforce management strategy ensures that all employees adhere to labour regulations, industry standards and company policies. It promotes equitable practices related to scheduling, time tracking, leave management and other workforce-related processes. This policy alignment not only mitigates compliance risks, but also creates a harmonious work environment, enhancing employee satisfaction and reducing the likelihood of potentially disruptive conflicts.
Workforce management directly impacts employee engagement and retention rates. By utilising WFM practices, organisations can create transparent and fair scheduling processes, allowing employees to enjoy predictability and work-life balance. Employees who have control over their schedules and can easily request time off or swap shifts experience higher job satisfaction and are more likely to remain committed to their organisation.
Workforce management likewise enables organisations to identify skill gaps and provide targeted training and development opportunities. By investing in employees’ professional growth and aligning their skills with organisational needs, organisations can foster a culture of continuous learning and career advancement, leading to higher employee engagement and retention.
Optimising labour costs is a significant benefit of workforce management. WFM systems provide accurate labour forecasting capabilities, allowing organisations to align staffing levels with demand and avoid unnecessary labour expenses. By efficiently scheduling employees based on workload and demand patterns, organisations reduce their overtime costs and minimise the need for temporary or contract labour.
Furthermore, WFM tools help to identify opportunities for operational efficiencies, such as optimising shift patterns, improving task allocation, and reducing time theft or ‘buddy punching’. These cost-saving measures contribute to overall profitability and competitiveness.
Although workforce management software options all have a similar mandate of optimising employee and resource orchestration, not every WFM solution is of the same calibre. Top WFM software provides a range of functionality, and generally includes:
Absence management
An effective WFM solution includes robust absence management capabilities to handle diverse types of employee leave, such as holidays, sick days and other time-off requests. It enables organisations to manage and track employee absences efficiently, ensuring appropriate staffing levels and minimising disruption to operations.Analytics
Advanced analytics functionalities are crucial in an effective WFM solution, providing organisations with actionable insights and data-driven decision-making capabilities through comprehensive reports, dashboards and visualisations. These workforce analytics help organisations to identify trends, optimise resource allocation and continuously improve workforce management strategies.Labour budgeting
Labour budgeting features of workforce management software help organisations to accurately forecast and allocate labour costs. This enables businesses to align labour expenses with needs, optimise staffing levels and ensure cost-effective resource allocation.Mobile accessibility
Work is no longer tied to the office (or the desktop computer): Today’s workforce is untethered and expects to be able to perform vital functions through their authorised mobile smart devices. Mobile accessibility allows employees and managers to access the system from anywhere and at any time to view schedules, request time off and swap shifts, while managers can approve requests, monitor workforce data and make real-time adjustments on the go.Overtime management
An effective WFM solution should include features to efficiently manage overtime, helping organisations to monitor and control overtime hours, ensure compliance with labour regulations and optimise workforce scheduling to minimise costs.Performance management
Tracking and evaluating employee performance is a major factor in workforce management. WFM performance management tools enable organisations to set performance goals and conduct regular performance reviews, while also providing time-relevant feedback to enhance employee engagement and productivity.Regulatory compliance
Given the potential penalties for non-compliance, effective WFM solutions must be capable of ensuring that the business in question is operating in line with labour laws and industry regulations. This helps organisations to automate compliance-related processes, such as managing work hour restrictions, breaks and rest periods, reducing the risk of compliance violations.Scheduling
Robust scheduling capabilities empower organisations to create optimised schedules based on demand, employee availability and skills, as well as a range of other factors. Efficient scheduling helps to minimise overstaffing, understaffing and conflicts, while also ensuring that the right employees are assigned to the right tasks.Time tracking
Finally, accurate time tracking is a fundamental feature of effective WFM solutions. Time tracking enables organisations to capture and record employee work hours, breaks and absences, facilitating accurate payroll processing, providing insights into labour costs and ensuring compliance with labour regulations.
Because workforce management encompasses such a range of functions and responsibilities, it is no surprise that building a comprehensive solution tailored to specific business needs can be a major endeavour in terms of time and effort. Still, the advantages make the investment more than worthwhile. When establishing a foundation for optimal workforce management, organisations should consider the following steps:
In the first stage, leadership sets both short- and long-term objectives, determining the desired outcomes of a WFM solution and how the workforce will need to be aligned to meet those goals. Establishing a strategic direction provides a clear vision and purpose for workforce management efforts, enabling the organisation to prioritise and allocate resources effectively.
Through data gathering and auditing of the current workforce, organisations can identify overlaps, gaps and inefficiencies in their existing workforce processes. Thorough analysis helps to identify areas for improvement – such as skill gaps, staffing shortages or process bottlenecks – and enables organisations to make data-driven decisions in optimising their workforce.
Various tools and software exist to apply workforce management principles, and choosing the most suitable ones depends on the organisation’s current workforce and future objectives. Identifying the right solutions enables organisations to streamline processes and maximise efficiency, without losing sight of their goals.
Once the appropriate WFM solutions are in place, it is important to create standardised procedures for use throughout the organisation to ensure process consistency, eliminate ambiguity and enable effective communication across teams. Clear procedures promote transparency, minimise errors and enhance overall operational efficiency.
By leveraging technology and automation tools, organisations can reduce manual administrative tasks, streamline data entry and reporting, and minimise the risk of errors. Implementing automation reduces the time and effort demands that are associated with specific tasks, freeing up employees’ valuable time so that they can focus on more strategically relevant responsibilities.
Workforce management is an ongoing process that requires monitoring and evaluation: As objectives change or new challenges arise, organisations need to adapt their WFM systems accordingly. Monitoring progress, assessing performance and making adjustments as needed all ensure that the workforce remains aligned with organisational goals and evolving business needs, even during unstable periods.
Effective workforce management is essential for organisations to create a productive and engaged workforce. However, many organisations struggle with siloed HR technology and overly complex employee journeys. That’s where ServiceNow HR Service Delivery Integrations come into play. ServiceNow is committed to making the world of work work better for people, by delivering digital workflows and seamless integrations that enhance employee experiences while unlocking productivity.
With ServiceNow Employee Workflows and integrations with leading HCM and workforce management solutions, organisations can optimise how they approach resource allocation and alignment. The unified portal of ServiceNow Employee Center provides employees with easy access to the right HR apps and relevant information, eliminating the frustration of navigating multiple backend solutions. Additionally, ServiceNow Virtual Agent supports managers and employees with expanded conversations, simplifying various HR-related tasks. And that is only the beginning.
Demo ServiceNow today to see for yourself how ServiceNow is revolutionising workforce management. Because, after all, your workforce is what drives your business.