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What is Workforce Management?

What is workforce management? Workforce management is a system designed to streamline the internal processes of a company and increase the productivity of employees. The main goal of workforce management is to get the most value out of employees and to gain important business insights.

Workforce management, otherwise commonly referred to as WFM, is a system designed to streamline the internal processes of your company and increase the productivity of employees. It aims to get rid of many menial and useless tasks that employees have to do on a daily basis. The main goal of workforce management is to essentially get the most value out of your employees and to gain insights into your business.

Where did Workforce Management Come From?

Workforce management systems originated in contact call centers and businesses that have fluctuating demand and pay their employees on hourly wage. They needed an efficient way to keep employees organized and needed a system to unify their processes toward a common goal. With workforce management systems, we can forecast the number of employees needed to address customer demands and make the company more efficient.

According to Business Systems, workforce management systems have five functions: Scheduling, labor forecasting, performance management, employee engagement and payroll, time and attendance records.


Scheduling is the core of workforce management. Every scheduler knows how long it takes to schedule all the employees. It can be a tough, grueling task that can take days to complete. There are many variables involved with scheduling, including availability, time off requests, meeting any legal and contractual requirements. A scheduler has to take these all into account and try to create a balanced schedule. An amazing workforce management software takes all of these preferences and can automate scheduling to produce the most optimized schedule possible.

Labor Forecasting

With effective workforce management, you can start to manage the resources at your disposal more effectively. You can begin to predict the given demand of your business and schedule your resources accordingly. This is only possible with data collected from a workforce management system. One example of labor forecasting being used is through seasonality. If your business has more demand during the winter, you can forecast how many employees you need to keep your business functioning at an optimal level. With this data, you can start to scale your business for the future by accounting for your current growth rate, the amount of sales and leads and much more.

Performance Management

Having solid performance management will help your company grow. Employees that complete their quotas and goals by setting realistic goals can increase morale. When goals and quotas being achieved, employees can get a sense of progress as your company keeps obtaining its goals. With workforce management systems, you also can obtain better data management. With more data, you can back your decisions with numbers and statistics to make the most informed decision. You can also track your employee’s performance by tracking and analyzing the data.

Employee Engagement

It is one thing if you employees are working, but are they enjoying what they do? When employees are engaged, they deliver stellar customer service and decrease company turnover. Nothing is worse than being understaffed with customers complaining constantly about the quality of the service they are receiving. Having a constant stream of negativity can hurt morale and your company’s reputation. On the other hand, having employees who care about the culture and want to work for your company reduces turnover and decreases the amount of training on new employees. Having a strong culture that employees want to engage in and believe in can be crucial for reducing costs and increasing customer satisfaction.

Being flexible with your employees can also increase employee engagement. Having options such as working from home, flex time, overtime availability can bring employees great happiness to have those options available to them.

Payroll, Time and Attendance Records

An excellent workforce management system will have a way to record time and attendance and well as options to export those records to payroll system. This ensures the accurate collection of time and precise billing of employees for the hours they have worked. As a business owner, you don’t want to overpay or underpay your employees with ambiguous time records. With the implementation of workforce management system, the onus is on the employees to check in and out of work. If there is something wrong with the time records, it is because many employees forget to check in/out of work.

Benefits of Workforce Management

Now that you have heard about what workforce management can do, why should you even implement these systems into your company? What are the benefits of workforce management?

Reducing Expenses

By having accurate forecasting, you can always have the optimal number of staff on a shift. This reduces the amount of times you overstaff or understaff your business. Also, by decreasing turnover, your business can spend less money training new staff and more time on more important needs. In a small company this could only be one to two people, but in a large company that can be dozens of people.

Customer Satisfaction

Having the correct amount of staff to deal with demand goes a long way to increase moral and customer satisfaction. Without the stress of having too many customers, they can focus on the current customer more. Therefore, this will enable employees to deliver the best customer service. There is a distinction between being constantly busy and overwhelmed by the amount of traffic coming into your business. Being in a state of constant stress can cause burnout in you employees. Workforce management helps mitigate staffing issues to keep your customers receiving quality service.

Better Corporate Environment

With the correct amount of staff, employees do not have to feel pressured to finish more than they can handle. They are able to feel more comfortable in their position due to employees not overworking. This will lead to less stress and a happier working environment.

Conclusions about Workforce Management

All in all, Workforce management systems can be very beneficial to your business. It can help you with your scheduling, labor forecasting, performance management, employee management, payroll, time and attendance records. Whether you are looking to make your business more lean, want to save money, increase customer satisfaction or have higher employee morale, workforce management may be the right tool for you.

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