Workforce management (WFM) software brings different benefits to different businesses. All businesses are different as are the problems WFM software solves.
It can help improve efficiency and productivity, compliance, absenteeism and even engagement and morale. It can also provide valuable insight and analysis into business performance. The power of these benefits should never be underestimated, yet the question which is often the first on many businesses owners’ lips is: “How will this software save us money?”
The answer is never a simple one. As mentioned earlier, each business is unique. Therefore there’ll be different ways a WFM tool can help reduce costs for every business. However, what we find many businesses have in common is that labour is forming a high percentage of their total costs and this is always the best place to start when it comes to making smarter savings.
When margins are increasingly tight, any unforeseen increase in labour cost can have a huge impact on the business. In fact, in the healthcare industry, the inability to control labour costs is the primary reason care homes fail.
The major influencers, when it comes to spiralling labour costs, include the inability to manage staffing levels, too much time taken up by administration and, as a result of these, an inefficient business with low levels of productivity.
And it’s here a good WFM tool will make a tangible difference. By using systems like Quinyx they are able to manage their staff much more effectively and control their labour costs in real-time.
1. Schedule smarter
Say your business has 100 staff working 40 hours a week at an average cost of £10 per hour. Those 4,000 hours a week cost you £40,000. Ask yourself this, does every member of staff need to work 40 hours? What if half of your staff worked two hours a week less? This would save you £52,000 a year. Through smarter scheduling and offering a range of different shift options for your employees, you can make instant savings. And through better insights into your business you can see the optimal times to reduce your staffing levels.
Fact: Businesses using a WFM solution see a 6% reduction in payroll errors. (Source: Aberdeen Group)
2. Find your optimal staffing levels
Both understaffing and overstaffing can lead to unnecessary costs. Businesses who are understaffed will find employees working longer hours and claiming more overtime, often at a higher rate than they are usually paid. Not only does this cost go straight to the bottom line but the productivity levels in over-worked employees plummets, adding a further strain on the business. Overtime is the swiftest way to ruin any personnel budget.
Overstaffing can be just as damaging. If there are more workers than there is demand for work then the money you’re paying them is being wasted. Again, this is where better business insights will help you optimise who you need working and when you need them.
Fact: Businesses using a WFM solution see a 5% reduction in employee cost. (Source: TechNavio Global Research)
3. Say goodbye to unnecessary admin
Manually creating complex schedules takes time and more often than not the schedules will be changed once staff see them. It’s not only schedules that take time. Time and absence management are two HR functions which can be automated and linked directly to payroll with workforce management software.
A charity in the UK who use Quinyx used to take two days a week to create their schedules and at least a day a month to manage them. They are now creating the schedules in 30 minutes and there is minimal management time involved.
Fact: Businesses using a WFM solution see a 20% increase in customer facing time. (Source: Aberdeen Group)
Through greatly improved business intelligence, managers are also able to make better, more informed decisions. The result of all of this is a successful business, with happy employees, that delivers financially, commercially and operationally. This is why better workforce management is a key priority for small business, large organisations and everyone in between. It will transform your business and pave the way for growth, success and optimised performance.
If you enjoyed this article, you can download our free guide with 8 Ways to Instantly Improve the Engagement and Retention of a Flexible Workforce to find out more about how it can benefit your business.