It is time for your quarterly business review. As the owner of this company, you are concerned, and if you are, the board will be as well. The company is operational, but some areas are not functioning the way you intended. You did not expect, nor did you foresee such issues.
First off, your employees seem to hate their jobs. Furthermore, they do not want to work a full forty-hour week. You think to yourself, “What is wrong with these millennials?”Additionally, your costs keep going up while productivity is on a downward spiral. The business is not aligned with the way you intended. Something must change.
In your experience, workforce management should help to address the issues you identified. You must be able to adapt quickly, schedule effectively, forecast seamlessly, and overall set your business in a place where your systems are operational. You ask yourself:
1. There is Constant Change in the Workplace
The world of work is continuously changing. You realize that what worked for you as recently as last year needs to be amended now. Increasingly, employees want to set their times- flexibility. Workers are requesting more opportunities to work from home or work later in the evenings and sometimes work fewer hours.
With this knowledge, you now need to pay attention to how you schedule your staff, track activity, and overall, the way you work around these complexities.
A Switzerland-based study found that 70% of workers worldwide work from home at least one day each week. Your solution to this changing workforce- you need to change as well.
2. Employee Satisfaction is Important
Your staff is not happy anymore, and that is on you. Happy people equals added revenue. Your employees are your competitive advantage. Through their work and expertise, you can either retain customers or lose them. Knowing this, you must invest in your staff. Invest in training them, a reward system, and a feedback loop. In workforce management, you should employ the best. To keep the best talent happy, they must know you appreciate them.
This appreciation is not just for show. It is to build your bottom-line: the profits. There are many businesses in America with over 80% of the workforce saying they are happy with their company. Your solution to creating a culture of happy people- show them you value them.
3. To Increase Productivity.
When you focus on workforce management, you put in place systems that work hand in hand to improve productivity in the company. For example, satisfied and engaged employees tend to be high performers, which translates to increased productivity. A team of high-performing staff drives customer satisfaction which may lead to client retention and referrals. As you retain your clients, the new ones become added revenue streams.
All aspects of workforce management- staffing, planning, organizing, and forecasting- combine to improve productivity. Your solution to increasing productivity- keep staff happy and lower your costs.
4. To Lower Operational Costs.
If you want to remain viable in the marketplace as a business, a good option for you is to cut costs as best you can. Your aim should be to get incomparable value at absurdly low prices. You want to focus on cutting your “bad cost” areas of spending that are not essential to the survival of the organization.” In workforce management, one way to achieve this is by investing in enterprise workforce management software. This software can reduce your labour costs by over 5%.
Suppose you compare the loss from under-scheduling during peak periods or even hiring more employees than you need. In that case, you will see that an investment in the right supporting management system will help. With adequate data, you can make management decisions that will save money across the board- staffing, purchases, investments, among others. Your solution to lowering the business costs- create a culture to optimize your resources to get the best return.
5. To Create Closely Aligned Business Goals.
Try not to make the error of having disjointed goals and objectives. Everyone in your company should know how their contribution impacts and influences the company’s goals. An acceptable workforce management policy eliminates confusion among staff and customers but encourages a culture of prosperity. Spend time to create business strategies that align the company policies with the overall goals.
You do not want to have a “Walt Disney” on your team and lose him because he was ignorant about what his contribution should be. An employer fired Walt Disney for being uncreative, but he later became an icon in his field. Your solution to developing closely aligned business goals- ensure every team member knows the plans.
6. To Identify Gaps in the Business Model.
Having a workforce management system aims to ensure that the business is operating at its optimal level. With workforce planning, you put together a plan that compels all parties to work in a specific way. The planning causes managers to look ahead and expect and prepare for changes.
Workforce planning also allows employees to feel comfortable in the work environment. If there are any flaws in your business model, keen attention to workforce management will reveal them. Your solution to identifying gaps in the business model- invest in a workforce management system.
7. To Have a Competitive Advantage
Making a profit is the prominent goal companies intend to accomplish when they go into business. Competition can either hinder this outcome or help to achieve it. The competencies afforded by utilizing workforce management align your company to compete with market leaders. In this globally competitive environment, choosing to use workforce planning may give you the competitive edge you need above your competitors.
Workforce Management is Significant Because: A workforce planning policy increases productivity in the business.