Why is workforce management so important?
How can your business enhance its workforce management?Workforce management, the process by which a business optimizes productivity of its employees, departments and skills, is an essential part of workplace success. Some of the most common pieces of this concept include:
- Career planning
- Employee scheduling and attendance tracking
- Performance management
- Talent management
According to The Human Capital Management Institute, the sum of employee salaries, wages, overtime and other indirect expenses often account for more than 70 percent of total operating costs. This figure has risen each year since 2005.
Many businesses have indicated that a change in workforce management is necessary for a better work environment and future success. How can companies get there though?
One of the first steps employers can take is identifying where workforce management can drive the organization to a better standing. How is the business continuing operations now? What exactly is successful for the business and why? Where does your business stand in terms of customer interactions and satisfaction? By thinking of these questions, employers can enhance workforce management.
Here are some things to consider for improving workforce management:
- Eliminate silos: Many organizations operate through vastly different parts. Although these separate entities are much different from one another, the business should not be divided, especially among workers. A recent survey conducted by Oracle has found that peers are often the most engaging part of a workforce. Employees have a more direct and positive effect on work experiences than management. By keeping employees close together, bonds can be fostered and strengthened.
- Improve customer satisfaction: There is a direct correlation between optimizing workforce efficiency and overall satisfaction. By improving customer relations, work process and efficiency is often increased, advancing brand equity and quality.
- Increase employee morale: Two of the most important aspects of a workforce are employee happiness and morale. By implementing unified workforce management solutions, such as benefits, bonding activities and a better understanding of expectations, employee morale is often increased tenfold. Research from the Aberdeen Group found that organizations with the best-in-class performance saw a 11 percent year-over-year improvement in employee satisfaction.
- Measure improvements: By enacting an effective workforce management practice, a range of data can be tracked including hours, payments, details of skills and learning experiences. Tracking this data for improvements and the lack thereof can ensure that the process is successful, or what may need to be changed in order to remain sustainable.
- Boost productivity: Employee productivity is an important aspect of development. Workforce management should be constantly tracking productivity as more automated approaches are streamlined, skills are taught and more data is collected.
Consider streamlining the workforce management skills in your business today. As with any change in a business, results can take time. By tracking changes, a business can ensure these changes are successful.