What is the difference between WFO and workforce management?

Workforce Management vs Workforce Optimization – What’s the Difference?

What is the difference between WFO and workforce management

Understanding Difference Between Workforce Management and Workforce Optimization

As companies seek to provide flexible work arrangements, Workforce technology has become essential. Optimization of the workforce, WFO, and workforce management, WFM, are two of the most commonly used tools in this area. Although both systems share many features that overlap, there are crucial distinctions to be distinguished between these two systems. What is the difference between WFO and workforce management? In this article, we’ll discuss the difference between workforce management and optimization, highlight the main distinctions and provide a better understanding of the roles they play and their significance.

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difference between WFO and workforce management

What is the difference between WFO and workforce management?

What is the difference between WFO and workforce management? WFM and WFO tools offer tools for scheduling and forecasting however, WFO tools concentrate more on engagement of employees. The three main distinctions between these two systems are their characteristics, scope, and users.

Key features of WFM and WFO

WFM systems are used to perform basic but important functions, including scheduling and attendance tracking in workplaces that are busy and which employees receive pay hourly or trade shifts. This could be construction sites, retail stores as well as restaurants, contact centers and so on. Important WFM features include:

  • Service-level forecasting: Forecasting tools let organizations predict how busy their workplaces might be throughout a given season, week or even a specific day
  • Schedule automation: Automation allows you to schedule the correct number of employees, based on forecasts for service levels.
  • Attendance tracking: Attendance tracking apps will record employee clock-in and clock-out times, and immediately notify supervisors if employees do not adhere to attendance guidelines.
  • Absence management: WFM systems include apps that allow workers to make requests for time off. They also track and manage the employee's sick and vacation time in accordance with external and internal legal requirements.
  • Shift-swap tools: The tools for swapping shifts streamline the process through which employees swap shifts and trade shifts with each other, which improves flexibility of schedules and enhances satisfaction.
  • Mobile access: Mobile access WFM systems allow employees to view their calendars, look up their attendance records as well as request time off and trade shifts using the comfort of their smartphones.

WFO platforms provide the same functions that WFM systems do, but they also include additional features for contact centers, like agents’ performance analytics and coaching tools. Some of the key features on WFO platforms include:

  • Call recording: The recording of calls is a way supervisors are able to record conversations between customers and agents to ensure quality assurance.
  • Call monitoring: Monitoring functions permit supervisors to monitor calls to gauge agents' performance and offer help.
  • Speech analysis: AI tools can analyze recordings or live conversations to determine the emotions of customers. This analysis may help identify agents who need additional training.
  • Desktop analysis: WFM systems can track agents' activities on their desktops and monitor which websites and applications they are using. When it is combined along with additional metrics like the rating of agents, it could provide insight into what agents' behaviors can lead to success as well as unsuccessful results.
  • Real-time coaching: Real-time coaching makes use of speech and text analytics to determine the emotions of customers in real-time. Then, it gives agents suggestions regarding what to do next.
  • Knowledge management: A few WFM systems provide tools for managing knowledge including centralized FAQ repositories, which agents can access as a reference tool.
  • Voice of the employee surveys: Surveys that are digitally recorded gather feedback from employees so that supervisors can improve the experience of employees and decrease the rate of turnover.

WFM is a subset of WFO

Companies depend on WFM systems to carry out essential business procedures like scheduling, tracking hours and management of absence. WFO platforms also fulfill these functions, however, they go further, helping organizations train contact center personnel and improve satisfaction of employees.

WFM platforms can increase employee satisfaction to a certain degree due to their tools for scheduling and forecasting to ensure employee schedules are even and fair. But, WFO platforms offer agent analysis, coaching in real-time and surveys for employees to ensure that employees have the proper training and support needed to be successful.

WFO tools cater to large contact centers

WFM systems are beneficial to almost every company which has hourly employees or provides flexible scheduling. However, these tools are more important as a company’s workforce expands. Smaller companies can manage their schedules using basic spreadsheets, however most require a specialized WFM software application to deal with the many complexities.

WFO platforms, however, are designed specifically for big contact centers. These platforms typically involve an investment of a significant amount, and SMBs may not have the funds for these platforms. However, contact centers for enterprises which want to stand out from their competitors frequently choose WFO-based platforms.

What is Workforce Management?

Workforce management, also known as WFM, is the method of organizing, planning, and directing all human capital of a company. It encompasses a variety of tasks that aim to get the most value from your employees and making sure they have the tools and resources they require to succeed.

What Is Workforce Management (WFM)?

Benefits of Call Center Workforce Management

From improved profits to increased employee morale, a well-run staff management will benefit your company and your employees greatly.

  • Increased profits: WFM ensures you get the right people to complete the correct tasks in the appropriate manner, at the right moment and in the proper location. This means you’ll likely experience more profits and increased productivity in your company.

  • Simplified onboarding: WFM software makes it easier to complete the process of onboarding for new employees and helps them get on the right track quickly.

  • Maximized productivity: WFM maximizes productivity by planning workload, delegating work and tracking time, making fair payments and releasing results.

  • Reduced errors and accidents: WFM ensures the right mix of expertise and knowledge each shift, ensuring that you reduce the risk of accidents and errors.

  • Higher customer satisfaction: WFM provides people with the skills they require to be able to work more efficiently. This will enhance your customer’s satisfaction.

  • Lower labor costs: With WFM tracking and analytics to analyze the current level of staffing within your company to optimize the resources available and reduce costs for labor while ensuring the quality of your work.

  • Higher employee morale: WFM can help improve the overall working environment of your team, and help contribute to a higher morale of employees by balancing the workload as well as automating rosters and paying the correct amount of payroll.

  • Reduced legal compliance risks: WFM systems help you adhere to local, national industrial, union, and rules to ensure that you are legally operating.

What is Workforce Optimization (WFO)

WFO is a broad term that covers the management of workforces, quality management, interactions analytics and performance management – all to “optimize” performance. This is where the confusion begins. WFO doesn’t exist as a brand, it is an entire suite of products. It’s not like WFM (but WFM is a component of the WFO products suite). The WFO concept prompted companies to incorporate the standalone, separate products into the suite. Recently, vendors have begun including AI technology in their suites of WFO. WFO has been a good fit for contact centers throughout its history, however social changes have required changes to the manner in which the contact center manages their employees. WFO is focused on reducing operating costs, whereas WEM concentrates on increasing the engagement of employees.

Benefits of Workforce Optimization

  • Access to Top Talent: Strategies for maximizing the workforce contain processes to find and draw in people who have the required skills to satisfy organizational requirements. Through aligning talent acquisition to the strategic objectives, companies are able to better position themselves on the market.

  • Enhanced Operational Efficiency: Implementing effective workforce management optimization can reduce the time spent on processes, make task assignment easier and enhance overall workflow. This results in better utilization of time and resources.

  • Increased Productivity: One key consequence of workforce optimization is the increase the productivity of employees. When employees are scheduled properly and are equipped with the right tools, they will be able to complete their tasks more efficiently.

  • Cost Savings: By increasing efficiency and operational efficiency companies can lower their cost of labor. Effective management of staff can aid in maximizing expenditures, resulting in substantial savings.

  • Compliance with Regulations: Optimizing the workforce involves making sure that employees adhere to the rules and laws governing labor that reduces the chances of being in violation and the penalties.

  • Improved Customer Satisfaction: The optimized scheduling and management of staff allow businesses to meet customer demands quickly. Quality service results in better retention of customers and could increase the loyalty of customers to a brand.

Choosing Between WFO and WFM: Considerations

Companies must be aware of their needs and goals in deciding whether to go with WFO as well as WFM. The factors to be considered include:

  1. Scope of Optimization:  If your main goal is to improve fundamental processes for employees, like schedules and timekeeping, WFM might suffice. For those who want an overall approach that has the focus on analytics, quality, and constant improvements, WFO is the preferable alternative.

  2. Industry and Compliance Requirements: Certain industries might have specific regulations for compliance that call for greater rigor in a WFM (or WFO) solution. For instance, industries that have strict quality standards could consider WFO more effective.

  3. Organizational Size and Complexity: Smaller companies with simple requirements for managing their workforce may consider WFM solutions more appropriate. Larger organizations with complicated processes and a need for a more in-depth analysis may be more inclined to WFO.

Frequently Asked Questions

Another term used to describe the management of workforce is staffing management that involves coordinating and supervising employees to ensure their performance is optimal, effective scheduling and alignment with the business requirements.

WFM can help businesses reduce labor costs, enhance customer service and boost efficiency in operations by synchronizing staffing levels to the demand. It makes sure staff are efficiently scheduled and work at demand without understaffing or overstaffing.

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