Workforce management

Workforce management is an institutional process that maximizes performance levels and competency for an organization. The process includes all the activities needed to maintain a productive workforce, such as field service management, human resource management, performance and training management, data collection, recruiting, budgeting, forecasting, scheduling and analytics.

Workforce management provides a common set of performance-based tools and software to support corporate management, front-line supervisors, store managers and workers across manufacturing, distribution, transportation, and retail operations. It is sometimes referred to as HRMS systems, or Workforce asset management, or part of ERP systems.

Definition

As workforce management has developed from a traditional approach of staff scheduling to improve time management, it has become more integrated and demand-oriented to optimise the scheduling of staff. Besides the two core aspects of demand-orientation and optimisation, workforce management may also incorporate:

The starting point is a clear definition of the work required through engineered standards and optimal methods for performing each task as efficiently and safely as possible. Based on this foundation and demand-based forecasts, workers are scheduled, tasks assigned, performance is measured, feedback is provided and incentives are computed and paid. In addition, online training is provided along with supervisor-based coaching to bring all workers up to required levels of proficiency. Workforce management is a complete approach designed to make a workforce as productive as possible, reduce labor costs, and improve customer service.[1]

Workforce management software

Workforce management solutions can be deployed enterprise-wide. While special software is commonly used in numerous areas such as ERP (enterprise resource planning), CRM (customer relationship management) and HR (human resources) management, the management of the workforce is often still handled by using spreadsheet programs or time recording. This often results in expensive overtime, non-productive idle times, high fluctuation rates, poor customer service and opportunity costs being incurred.

In contrast, by using a software solution for demand-oriented workforce management, planners can optimise staffing by creating schedules that at all times conform as closely as possible to the forecasted requirements. At the same time, a WFM solution helps users to observe all relevant legislation, local agreements and the contracts of individual employees – including work-life balance guidelines.

A key aspect of workforce management is scheduling. This is achieved by establishing likely demand by analysing historical data (such as the number and duration of customer contacts, sales figures, check-out transactions or orders to be handled). Many workforce management systems also offer manual adjustment capabilities. The calculated forecast values are then converted into actual staffing requirements by means of an algorithm that is adjusted to the particular use case. The algorithm itself is based on the work of Erlang though most modern adaptations of WFM have shifted towards a richer state management, and optimizations to the original idea.

Current and future staffing requirements, short-term peak loads, availabilities, holidays, budget allowances, skills, labour law-related restrictions, as well as wage and contractual terms have to be integrated into the planning process to guarantee optimal staff deployment. In the workforce management process, the integration of employees is an important factor. In several WFM systems, employees can log in their availability or planned absences and they can bid for specific shifts so long as they have the necessary skills for the activities planned for these shifts. Experience shows that professional workforce management systems realistically fulfil more than 80 percent of employees’ shift requests. Here, employee scheduling software guarantees the best possible synthesis of optimised staff schedules and employee requests.

The more flexible the working time models and the more complex the staff scheduling becomes, the higher the requirements for correct time management becomes. As time recording and accounting of working times are closely connected to scheduling, the integration of time management into the entire process is the logical consequence. Using workforce management systems, working times are booked exactly to the required time accounts and made available for payroll accounting by means of automated processes.

Many software solutions offer a number of options for evaluating the planning in real-time, enabling short-term reactions to deviations from the forecasted demand or expected over- or understaffing. Control functions enable a permanent adaptation of the scheduled staff to the actual requirements. In other words, the optimization process allows for manual data adjustment in the case of short-term fluctuations in demand or unscheduled employee absences.

Three delivery methods are available for contact center technologies: on-premises solution, hosted or cloud-based.

On-Premises: An on-premises system is one in which hardware and software must be physically installed, deployed and maintained at the business. All equipment is purchased up front. It is traditionally associated with large enterprises with the budget and the space to acquire the capabilities deemed necessary, and the personnel available to configure and modify systems.

Hosted: A hosted system relies on an outside service provider. Software is purchased and installed in a data center on either physical or virtual servers that may be owned or leased by the business. Implementation is similar to an on-premises solution, but the cost is typically lower because hardware need not be purchased. However, the business must pay an initial provisioning fee as well as a monthly fee for the rental or usage of the hosting center’s equipment and personnel.

Cloud: Cloud computing converts such physical resources as processors and storage into Internet resources. By developing applications in a virtual environment, a company’s computing infrastructure is treated as a utility service, and the company pays only for the time and capacity it needs. Cloud eliminates issues such as computing capacity, physical space, bandwidth and storage.

Workforce optimization

Workforce management is itself evolving into a solution termed workforce optimization. This builds on workforce management to encompass all aspects of managing the complete workforce life-cycle and supports the business with key insights into how its workforce is performing. Workforce management provides a common set of performance-based tools to support corporate management, front-line supervisors, store managers and workers across manufacturing, distribution, transportation, and retail operations. The starting point is a clear definition of the work required through engineered standards and optimal methods for performing each task as efficiently and safely as possible. Based on this foundation and demand-based forecasts, workers are scheduled, tasks assigned, performance is measured, feedback is provided and incentives are computed and paid. In addition, online training is provided along with supervisor-based coaching to bring all workers up to required levels of proficiency. It is a complete approach designed to make a workforce as productive as possible, reduce labor costs, and improve customer service.

See also

References

  1. ↑ "3 ways to get the most out of workforce management systems".
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