Let me start off this workforce management guide with a quote, an ice breaker, if you will:
“It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.” – Jack Welch, former CEO and chairman of General Electric
Jack Welch isn’t wrong. A company is its workforce, and failing to manage it well is like neglecting the very heart that keeps the business alive. Sure, marketing strategies, products, and technology are important, but it’s the people behind them who make the real difference.
In this article we’ll tackle what workforce management actually is, how it can transform your business if done right, and the strategies that top companies use to unlock their team’s full potential.
What is Workforce Management?
Workforce Management, or WFM, is the process of planning, tracking, and optimizing how people work in an organization. It involves things like scheduling shifts, tracking attendance, monitoring productivity, and making sure labor laws and company policies are followed.
The goal is essentially to make sure the right people are in the right place at the right time so the business can run smoothly and achieve its goals.
Why is Workforce Management Important?
Workforce management is important because it helps businesses match their staffing levels with what’s actually needed.
This lets you cut unnecessary labour costs from overstaffing and avoid understaffing which can lead to missed sales and unhappy customers.
With workforce management you can also give your team more balanced workloads. That means less burnout and more optimal use of their time and skills.
It doesn’t matter if you have a team of five people or five hundred, keeping track of schedules, time, attendance, and tasks can get messy fast. But when your workforce is managed properly, operations run smoothly, productivity increases, and employees feel valued and supported. It’s an overall win for any organization.
Core Components of Workforce Management
So what does workforce management actually involve?
Is it just about creating work strategies? Managing a team? Bossing people around?
Not quite.
Workforce Management, or WFM, is the process of planning, tracking, and optimizing how people work in an organization.
It deals with a host of things including scheduling shifts, tracking attendance, monitoring productivity, and making sure labor laws and company policies are followed.
Let’s try to look at each one of these:
How Do Top Companies Manage Their Workforce?
“If you’re building a company, you’ve got to gather great people. I mean, all a company is a group of people that have gathered together to create a product or service.” – Elon Musk
Top companies understand that their people are their biggest asset, so they take workforce management seriously. Instead of just filling shifts, they focus on creating systems that balance efficiency and employee wellbeing. And here’s how you can do it like them:
1. Use data-driven workforce planning
Without the right data, you’re basically managing your workforce blind.
Top companies rely on data to make smart staffing decisions. Look at your company’s sales trends and customer demand to identify busy days and peak hours. Also have a look at your staff’s availability, who can work mornings, evenings, weekends, or holidays.
This way you can create a schedule that meets demand and works for everyone.
It helps to plot all this information visually, such as on a calendar or scheduling tool.
Putting in the time to conduct data-driven planning pays off. It ensures that each shift is adequately staffed, prevents overstaffing that drives up costs, and avoids understaffing that can lead to stressed employees and unhappy customers.
2. Consider flexible work arrangements
Companies like Microsoft, Apple, and Google have embraced flexible work arrangements.
It may not be the right fit for everyone, but offering workers an option to work remotely gives them greater control over how they manage their time and energy. This not only improves work-life balance but also helps employees stay more productive and engaged.
Offering a flexible work arrangement shows that a company trusts its people, which in turn builds loyalty and reduces turnover. It also opens the door to a wider talent pool, since location is no longer a barrier to hiring the best candidates. In many cases, flexible work options reduce overhead costs and support sustainability by cutting down on commuting.
3. Leverage workforce management tools
Technology plays a central role in modern workforce management. And if you don’t use them yet, you’re missing out on a ton of potential.
For example, time-tracking apps like Jibble automatically log when employees start and finish work, eliminating manual timesheets. This not only saves hours of admin work but also ensures payroll accuracy.
There are also tools that can track leave and performance allowing managers to make smarter decisions faster. They also simplify compliance with labour laws and provide insights that help optimize productivity across the organization.
Beyond tracking, workforce management systems can forecast staffing needs, automate scheduling, and even identify workload trends before they become problems.
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