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Why use workforce management

It’s not hard to see that employees can be expensive. The Human Capital Management Institute calculated that the total cost of employee salaries, overtime and indirect compensation was 70% of an organisation’s total operating expenses. This number has been increasing every year since 2005. Take into account this: Research firms Gartner, IMS Research, and Gartner estimate that workforce management accounts for between 1.5% and 3.3% of all enterprise software spending.

What does this mean? It means that many of the systems that are designed to increase workforce utilisation, decrease labour expense, and curb absences, take up a very small percentage of technology budgets in many organizations. It indicates that not all organisations have yet realized the full potential of comprehensive workforce management. This means that companies have a huge opportunity to dramatically and sustainably improve their business performance.

Firms should prioritise IT spending in the next few years. Workforce management should be high up on the list because it plays a central role for achieving the following goals.

Reduce expenses

Automating employee pay and time calculations reduces errors. It also ensures that even complex pay rules are executed with precision and ease. A complete view of the workforce utilization helps organisations plan more effectively and adjust staffing levels to meet changing circumstances. These improvements can drastically reduce average labour costs. Aberdeen Group research has shown that organizations with optimised workforce management spend 33% fewer on overtime unplanned.

Increasing operational agility and productivity

An automated approach to workforce management allows for more context and data to be available to managers, which can help them make better decisions. An organisation’s ability and willingness to hire the right people at the right times and at the best cost can directly improve its ability to adapt to changing production goals. Aberdeen group’s research has shown that automated staff scheduling solutions result in a 4% increase in workforce utilization, which is an advantage that can lead to substantial productivity gains.

Reduced financial and noncompliance risks

Large organisations have additional compliance requirements that go beyond the national laws. Compliance obligations extend beyond national laws to include local ordinances, union rules as well as individual employment contracts. Inadequate compliance records, or gaps in them, can cause costly errors. Organizations can quickly and easily prove compliance with a robust workforce management solution, reducing non-compliance risks as well as the associated costs.

Improve customer satisfaction

Customer satisfaction and workforce efficiency are directly linked. Aberdeen Group claims that companies with best-in-class workforce optimization results are more satisfied customers than those who are just achieving 9%. A strong workforce management system is another key component to sustainable growth.

Increasing employee morale

The automated workforce management system improves employee engagement, morale, and morale by increasing transparency and communication between the manager and the employee. Aberdeen Group’s research brief also shows that organizations with the best workforce optimization performance achieve a 11% improvement in employee satisfaction over all other organisations.

A unified workforce management solution can help organisations reduce labour costs, improve compliance, and empower workers to take better decisions at the moment to support business goals. Automating absence, time and scheduling functions gives organisations a more complete view of labour costs, activities and can often help them find new ways to increase performance.