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What Is The WFM Process?

Understanding the Workforce Management (WFM): Definition, How it works, Process, Strategy, Benefits and Challenges

What Is The WFM Process

Introduction to Workforce Management

Management of the workforce (WFM) helps companies improve the efficiency of employee processes to improve efficiency and lower expenses. It is important to consider the management of its workforce when its work workforce requires a boost in productivity. The management of all aspects of a business will help it operate more efficiently. The management of workforce (WFM) will be an essential aspect of management for companies that have fewer or a large number of employees. Knowing how to manage your workforce can assist you in securing the position of human resource or in upper management. This article reveals everything employers need to know about workforce management— from how it works, What is the WFM process , to why every business needs it to optimize performance.

Table of Contents

What is the WFM process?

What is the WFM process? The WFM process is broken down into a number of distinct steps. Each step plays an important function in ensuring that your WFM is carried out effectively.
  • Forecasting & Budgeting
    Plan staffing requirements for the future and the kinds of resources required for a particular project at a specific period of time, which includes holidays and seasonal demands. Budgeting requires knowing the number of employees a business is able to afford and at what time.
  • Scheduling
    Through WFM application, the entire process of scheduling becomes automated and much more efficient. Schedules are created according to business-related variables like availability and workload, absences and even holidays.
  • Time & Attendance
    WFM can provide companies with the ability to see attendance patterns as well as the number of hours that are worked. This allows businesses to anticipate shifts in demand, deal with absences, identify gaps in coverage to improve accuracy of payroll, and identify and tackle absences or chronic lateness.
  • Performance Management
    WFM gives insights into the engagement of employees and their performance. This helps organizations increase productivity of employees and motivate them to workers in a way that aligns with their ideals.
  • Compliance
    Being in compliance with all state, local and federal laws is easier with the help of the tools to manage your workforce. Failure to comply can be costly, possibly leading to litigation and fines. The ability to track certifications, education, and licenses can help companies run their businesses legally.
  • Payroll & Benefits
    WFM systems help make the process of calculating benefits and payroll more efficient and speedier due to the fact that custom reports are ready to go and immediate payment options and timesheets that are synchronized with payroll.
  • Vacation & Leave Planning
    The process of approving time-off requests is now all digital thanks to WFM software. Staffing levels are monitored automatically and the data analytics provide important information on pay-for-time off (PTO) and absences and time banked.

WFM also covers the recruitment process and employee training management. Off-site Resource Management (field services management) Analytics, as well as live data gathering.

​​What is workforce management?

Workforce management is a collection of procedures and processes used in an organization to improve efficiency and productivity of employees. Every software company in the manufacturing industry uses WFM to enhance the efficiency of their operations. Workforce management is an umbrella term that covers various other aspects. Its main goal is to create all possibilities to sustain a productive workforce. There are a variety of processes that are involved in WFM that include:

  • Human resource management (HRM)
  • Human capital management (HCM)
  • Performance management
  • Data collection and analytics
  • Manpower budgeting and forecasting
What Is Workforce Management (WFM)?

The management of workforces is generally similar to the responsibilities of human capital management in which employee recruitment as well as management and development are the main focus. The difference is in the emphasis of WFM actions on improving efficiency and performance of employees, whereas HCM is only concerned with ROI.

In any business managing their workforce is crucial. It makes sure that workers work efficiently and without long work hours. Employers who use tools to manage their workforce and monitor activities in real-time could increase the amount of production and profits by several times.

Key Components of Workforce Management

WFM has several key components which contribute to its overall efficiency:

Forecasting
  • The ability to predict future requirements for staffing by analyzing previous data and patterns.

Scheduling
  • Making work schedules that are in line with business requirements while balancing the availability of employees and their preferences.

Time Tracking
  • Monitoring attendance of employees and working hours to ensure that payroll processing is accurate.

Performance Management
  • Assessing employee performance against predetermined objectives and giving feedback to encourage improvements.

Compliance Management
  • Making sure that employees are in compliance with the laws and regulations governing the working hours, wages and the rights of employees.

How does WFM work?

WFM is a repeated process and this is the reason it’s often referred to as a cycle:

WFM Cycle

  1. The process begins with forecasting which forecasts the staffing and workload requirements for the future by analyzing historical data, such as workload and processing time. This is in conjunction with information from business intelligence, like future marketing campaigns.
  2. Planning involves ensuring that your company employs the appropriate amount of employees to manage the anticipated growth of the company in the future.
  3. Scheduling is the process of making shifts for employees that are in line with demand and supply for employees in the most exact way possible whenever it is feasible. It is important to consider qualifications as well as labor laws, employment contracts, as well as other constraints.
  4. The goal of intraday management is to identify situations where the reality is not in line with the plans, for instance the sudden increase in demand or a sudden increase in sickness rates within the workforce. This allows you to take quick and efficient corrective actions to protect your KPIs.
  5. Analytics can provide insight that can help you improve your processes continuously. For instance, if you analyze the time you spend on activities that are not productive, such as time off and sickness it will improve the accuracy of your staffing calculations for the following cycle.

The benefits of well-executed workforce management

If all processes for managing the workforce are well managed and efficiently, the business can reap the rewards.

  • Better employee productivity: The most effective WFM solutions boost productivity of employees by ensuring that they are sustainable and long-lasting. They assist your employees to keep at the top of their game and accomplish their work efficiently.

  • Consistently excellent customer service: You’ve probably heard the expression, “Happy agents, happy customers.” If your managers of your workforce monitor employee performance within the department for customer service It also makes it easier to provide regular feedback regarding how to improve customer service.

  • Lower operational and administrative costs: We’ve already mentioned that managing (and trying to cut down) operational expenses is an important part of WFM. Being in a position to forecast more precisely and efficiently schedule agents aren’t just great things by themselves. If you’re spending less on operational expenses the profit margins increase. In fact, you don’t need to increase the cost of your products in order to make it happen.

  • Better forecasting and more actionable data: Many times, companies with highly-performing contact center teams are equipped with robust WFM strategies that rely on huge quantities of information. They’re not making all these calculations by hand obviously, but the more data you gather about things like the volume of calls and the most efficient (and less effective) timings of the days for your agents, the better information you can use to make data-driven decisions that are more likely to have positive effects.

Challenges in the WFM Process

Despite its many benefits however, WFM process may be fraught with problems:

  1. Data Overload: Many businesses have huge data collections that can be overwhelming. The ability to analyze this data efficiently is essential to make well-informed decisions.
  2. Changing Demand: Businesses typically encounter fluctuations in demand, which make it difficult to forecast and schedule. Making adjustments to these demands in real-time requires agility and rapid decision-making.
  3. Technology Integration: Taking on new tools and technologies for WFM could be overwhelming. Ensuring that new systems are integrated seamlessly with the current processes is vital to ensure the success of your project.
  4. Employee Engagement: Making sure your employees’ satisfaction and are involved within their participation in the WFM process is crucial. If employees are unhappy with their schedules and feel they don’t reflect their needs this could lead to frustration and even turnover.

How to create a successful WFM strategy

Below are some steps to making a winning WFM strategy:

  • Identify business needs, challenges and priorities
    Identifying your company’s requirements and prioritizing its needs, issues and priorities can aid in understanding the ways in which your WFM strategy can benefit the business. Knowing what the company would like to do better can help you design a strategy that is focused on addressing the most pressing needs and overcoming its obstacles. For instance, if a company has a high employee turnover rate, it could prioritize recruiting new workers. A successful WFM strategy is in line with the goals of the company.

  • Research WFM software solutions
    The majority of businesses utilize software to carry out WFM tasks since they’re more accurate and efficient than separate spreadsheets or manual processes. The best software for your company will depend on the industry it operates in, its size, and WFM objectives. A lot of software companies offer live demonstrations as well as free trials which can assist you in evaluating the software before you decide to implement it. It is important to educate all users to ensure that they are able to use the program efficiently.

  • Identify and fix processes
    Take note of what works for your company and think about how processes can be improved. If you find areas that need improvement, you can work towards making improvements. For instance the use of a verbal method for accepting and requesting leave could cause staff shortages if the boss does not fill the gap. Switching to a computer-based system will provide detailed evidence of when employees request for leave, if they are granted leave and if another employee is able to cover their shift. This reduces the chance of the tasks involved in the process of taking leave being missed.

What Is WFM Software?

The majority of the time, WFM software focuses on applications that help manage aspects of workforce performance for example, employee scheduling and attendance. The software can be utilized in a standalone capacity however for a lot of companies it is part of a wider range of HR applications supplied by a vendor specifically designed to be integrated into the HR system.

One of the most important features of WFM applications is their ability to offer self-service solutions, by which employees can check the status of their Paid Time Off (PTO) balances and/or request for a day off from work. If they are able to accomplish this (and similar) tasks independently this frees HR staff members who are busy from the burden of paperwork and allows them to put their energy into other areas of their work.

Conclusion

Workforce Management is an essential method for businesses that wish to maximize their human resources efficiently. Through understanding its elements and following a logical procedure for implementation, businesses can boost productivity, increase the satisfaction of employees, and keep the compliance of labor laws. As technology continues to advance, the use of advanced technology and analytics will play an important part for shaping the next generation of managing the workforce.

Frequently Asked Questions

The WFM processes cycles in a loop of forecasting demand as well as making plans for capacity, scheduling staff in real-time, managing staff, evaluation of performance, and reporting to ensure effective staffing.

The four main components of WFM include forecasting and planning, management in real-time and the analysis of performance.

WFM or Workforce Management, is the procedure of ensuring that the correct number of employees are on hand at the appropriate times to respond to customer demands effectively.

The management of the workforce process involves forecasting the demand, preparing capacity for staff hiring employees, scheduling them, making adjustments in real-time and analyzing performance.

For BPO (Business Process Outsourcing), WFM ensures that adequate personnel are scheduled, and on hand to manage customer interactions and ensure the quality of service and effectiveness.

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