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What is workforce management and why is it important?

A business has many moving parts. To help it run smoothly, decision makers at all levels need resources to help them manage departments, operations, inventory, and—of course—people. It’s also crucial to have data on hand to help optimize business now and when looking ahead to the future.

 

That’s why workforce management is essential to your organization. Learn what it is, why it’s important, and what available solutions can do for you.

 

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What is workforce management? 

Workforce management (also known as WFM) can help organizations manage employees and processes more seamlessly and accurately. Through online tools or software, leaders can use workforce management solutions to run day-to-day operations and plan for the future of the business. For example, workforce management could include systems or checklists to help you run payroll more efficiently, ensure compliance with local employment laws, or rein in out-of-control overtime costs.

 

Workforce management can help provide you with a bird’s eye view of your operations and provide you with information so you’ll be able to course-correct or pivot as needed. Solutions that are equipped with historical data, machine learning, and other intelligence-driven resources can help you fine-tune your reporting, save on costs, and improve decision making for your business.

 

Read about workforce management solutions. Learn more.
 

Common workforce management processes 

Workforce management covers a lot of ground. Typically, top workforce management processes include managing any of the following:
 
  • Timekeeping
  • Scheduling 
  • Budgeting 
  • Compliance
  • Forecasting
  • Data and analytics 
  • Human resources


Workforce management solutions can help organizations of all sizes in different industries. Software can also help eliminate repetitive tasks and human error in reporting.

Empower your frontline workforce with Microsoft Teams. Learn more.

Benefits of workforce management systems 

There are several benefits of putting a workforce management system in place. This type of software can help you:

  1. Improve productivity. View employee outputs and match them against company goals, curb manual processes, and adjust systems as needed to create more efficiency. 

  2. Track time. Keep tabs on employee schedules, absences (sick, holiday, and personal), and overtime to accommodate employees and avoid staffing shortages.

  3. Empower staff. Enable frontline workers to trade shifts with each other through technology solutions without having to go to management.

  4. Enhance accuracy. Stop the guesswork and manual data entry and use technology to store data and automate processes.

  5. Reduce costs. Assess staffing needs and minimize departmental bloat so that your organization is adequately staffed without wrecking your budget.

  6. Manage safety and compliance. Simplify reporting and automate workflows to stay organized and in compliance with local laws.

  7. Forecast for the future. Review employee and department outcomes and use this data when planning your next cycle of improvements, targets, and goals for the business.

These streamlined processes can help improve communication and engagement within your organization and help you save time, too. For instance, managers can take care of more pressing business needs and focus on important tasks and spend less time on scheduling.

Overall, a solid workforce management system can help your organization stay organized, improve productivity, run leaner, and manage regulatory risk.

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How to select the right workforce management system for you

When selecting the right workforce management system for your organization, consider the following and the importance of each factor to you:
  • What you want to manage and why. Get clear on what you want to monitor and automate, so you can create workflows for now and in the future.
  • Your must-have features versus nice-to-haves. Decide on your non-negotiables for software—perhaps you outsource payroll but would like a tool to supply real-time, advanced analytics so you’re able to create custom dashboards for your business.
  • Your budget. Determine what you want to spend, but keep in mind the cost-savings potential of using workforce management tools.
  • Vendor support and how it’s accessed. See if a particular platform offers multiple ways to contact support channels (such as via phone, email, in person, or live chat) and when that support is available (for example, during business hours only or all day).
  • Ease of use for managers and staff. What good is workforce management software if your team can’t figure out how to use it? Look for software that’s powerful and meets your needs, yet is user friendly.

 

A workforce solution that ticks off these boxes will help your organization—and your staff—get on board with it.

For additional resources, learn how to empower essential workers and improve morale in the workplace with the Technology Can Help Unlock a New Future for Frontline Workers report.

FAQ

  • Workforce management is a process or set of processes that can help people manage employees and operations at an organization. Through online tools or software, leaders can use workforce management solutions to run day-to-day operations and plan ahead. Workforce management typically covers areas such as employee scheduling, human resources, payroll, and compliance.
  • When devising a workforce management strategy, you should evaluate what you need to organize, measure, and refine in your business. For instance, you might have multiple human-driven systems that could be automated with technology. Or, you could have high overtime costs and scheduling gaps that you need to control to run your operation more effectively. Once you’ve identified issues or areas of improvement, you can research workforce management solutions to address them.
  • Workforce management offers several benefits for your organization. This software can help you improve productivity, track time, enhance data accuracy, reduce costs, manage compliance, and plan for the future.
  • When researching workforce management software, review your needs and budget. Depending on your preferences, you might choose one software over the other. For example, if you work in analytics, you’ll likely prefer workforce management software that offers advanced data reporting capabilities. And don’t forget usability: Choose a workforce management solution that your team can easily learn and access to help engage your organization.

The Microsoft 365 team is focused on sharing resources to help you start, run, and grow your business.

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Business Insights and Ideas does not constitute professional tax or financial advice. You should contact your own tax or financial professional to discuss your situation.

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