5 Benefits You Can Achieve From Workforce Management
It is common knowledge that employees drive up costs. According to a calculation, the sum of employee salary, hourly wage, overtime, and indirect compensation accounts for 70 per cent of an organization’s total operating costs. This percentage has been steadily increasing since 2005, reaching its current level in 2015. What does it indicate that the technologies meant to increase worker utilisation, minimise labour cost, and control absenteeism and other inefficiencies occupy such a small portion of the technology expenditures of many organisations?
Most organizations have not yet fully used the possibilities offered by comprehensive workforce management. To put it another way, it means that most organizations have a huge opportunity to significantly improve their performance. When companies are deciding how to allocate their budgets for information technology over the next several years, workforce management should be near the top of the list because of the essential role it plays in accomplishing the following goals:
Lowering one’s expenditures
Mistakes may be eliminated by automating the calculations of employee time and compensation, and even the most complicated pay regulations can be handled with accuracy and convenience. Furthermore, having a comprehensive view of workforce utilization allows organizations to better plan their employees and adjust personnel numbers in response to changing circumstances. These enhancements have the potential to substantially lower typical labour costs. According to research conducted by the Aberdeen Group, businesses that have optimised their employees’ management spend 33% less money on unnecessary overtime.
Increasing the flexibility and productivity of the operations
More information and context may be made available to managers who use an automated workforce management approach, which leads to improved decision-making. Directly supporting an organisation’s capacity to adapt to changing production objectives without sacrificing quality is the capability to allocate the appropriate personnel at the appropriate moment, with the appropriate abilities, at a reasonable cost, and at the appropriate time. According to research conducted by the Aberdeen Group, businesses that use automated staff scheduling systems have, on average, a workforce utilisation that is 4% higher than their competitors. This advantage results in significant productivity advantages.
Lowering the risks of financial loss and regulatory non-compliance
Compliance duties extend far beyond individual nations’ laws, particularly for significant organisations. In addition to this, you are obligated to abide by the requirements of municipal regulations, labour unions, individual employment contracts, and corporate policies. Errors of significant expense might result from non-compliance with regulations or a lack of clear compliance records. A reliable labour management system helps companies swiftly show compliance, reducing the risks connected with non-compliance and the associated expenses.
The increasing level of satisfaction felt by customers.
The happiness of one’s clients is directly proportional to one’s success in maximising the effectiveness of their staff. The research conducted by Aberdeen Group found that businesses that achieved best-in-class performance in workforce optimisation had an “18% year-over-year boost in customer satisfaction, versus 9% for all other organisations.” A further component of sustainable development is effective management of one’s employees, which helps to enhance one’s brand equity.
Boosting the morale of one’s workforce
Similarly, automated WFM boosts employee morale and engagement by increasing transparency and improving communication between managers and employees. Businesses can reduce their labour expenses, simplify their compliance processes, and empower their employees to make better point-in-time choices to support their business objectives by implementing a unified WFM system.
When time, scheduling, and absence operations are automated, they provide a more thorough picture of labour expenses and activities and enable organisations to discover new methods to increase performance in a scalable and sustainable manner.