What Is Workforce Management?
Workforce management is NOT staffing. It’s much more than hiring and firing. Workforce management by a third party like NOTS Logistics includes a set of processes that help increase planning and awareness, giving your company a clearer picture of its business needs. It increases flexibility, allowing your company to adjust to new challenges without the need for costly shifts in business or hiring strategies.
Workforce management can help you maintain communications, assign tasks, keep up with scheduling, train new employees, review performance metrics and more to help you stay on top of the day-to-day, whether your team is in a warehouse or manufacturing facility, on a construction site working in the field, or on the go.
But what is workforce management exactly? And why would your company need it?
The Basics of Workforce Management
The term “workforce management” (WFM) is the act of managing, regulating and directing the use of labor in the workforce. It stresses performance and competency with the end goal of maximizing employee productivity.
With NOTS Logistics, this occurs through our management of human resources, including recruitment, staffing, training, compensation, and benefits. We also cover performance management, employee engagement, reducing absenteeism, and more. We bolt onto your current business and run alongside you, managing the day-to-day workforce needs so you can focus on what you do best… running your business.
How It Works
The main goal of WFM is to maintain control over labor costs, by predicting future demand, then forecasting how many workers you will need on a daily, weekly or seasonal basis. In other words, WFM works to place the correct number of employees with the right skill sets where they need to be, when they need to be there.
And in the current post-pandemic environment, workforce management has never been more important.
For example, in a light manufacturing company, this means making certain that there are enough workers and resources at the facility to keep the work flowing and that any delays can be quickly addressed.
Workforce Management – A Two-Way Street
This type of management also revolves around optimizing the employee performance and their experience. It’s a two-way-street: These practices should not only benefit the company, but also empower the employees. At NOTS, we look to hire employees who want a career, not just another hourly job.
This is done by making the best use of their time and skills. It means understanding their capacities (such as workloads), ensuring their safety, and the “how, when, and where’s” for each employee to create a better work-life experience.
Why is Workforce Management Important?
Workforce management is important because it ensures that the employees are in line with your business goals. Effective WFM cuts costs and improves productivity. In increases flexibility and helps build a stable business that’s set to scale. Improving flexibility and planning will support better productivity, ultimately boosting profits. Plus, studies show that organizations that know how to effectively manage their workforces are twice as likely to outperform competitors.
An organization achieves its goals through its workforce, so it’s important to define your strategy for how to staff the organization, in order to meet these goals. Our workforce is the backbone of our business, and we can make it yours, too.