What Is WFM Software? 6 Fundamental Benefits to Growth
Published November 20, 2022.
Is there a payroll software solution that can help companies better manage their workforce? Yes! It's called workforce management (WFM) software and it can automate and streamline a variety of tasks to better utilize employees' time, facilitate labor efficiencies, and ensure employee safety.
» What essential features should your payroll software have? Find out here
What Is Workforce Management Software?
Is your company trying to find software to better manage your workforce? Businesses are always on the prowl to find a clear advantage to keeping track of personnel—this is where WFM software enters the equation. Let's see what WFM software features are and how they can help your business.
Common WFM Software Features
Here are five main features of WFM software:
- Scheduling: Private firms can tailor schedules to their needs and locate the best worker for an open shift using a vast array of criteria, such as certifications, skills, and hours worked.
- Time Tracking: WFM software will employ time clocks, web-based timesheets, and mobile applications to determine how many hours staff members have worked, which will then be processed into crucial internal data.
- Labor Forecasts: Using labor forecasts, offices can maximize their budgets by improving their plans for peaks and valleys in customer demand, meaning companies can better use their staff in various circumstances, such as special events, the weather, or holidays.
- Absence and Overtime Management: WFM software can monitor employees' absence data, as well as manage overtime for employees, which can be crucial for businesses with tight belts.
- Regulatory Compliance: Are your internal policies meeting the standards of federal, state, or local rules and regulations pertaining to wages, hours, and contracts? WFM software maintains an audit trail that will prove to be an exceptional defense in case of disputes.
1. Reduced Labor Costs
While labor has always been one of the biggest expenses for companies, today's inflationary environment has added to financial labor pressures. By integrating WFM software into day-to-day operations, companies can do a better job of allocating labor to the parts of the company that need the right people or keeping tabs on absence or overtime that can hurt the budget.
2. Increased Organizational Performance and Productivity
WFM software can facilitate a more productive workplace culture, as these digital tools allow employees to perform tasks remotely, whether it's approving employee requests or allowing workers to submit timecards. Overall, the mobile function of WFM software can be a critical tool in enabling better employee output.
» How important is workplace culture? Learn about its importance and how to improve it
3. Efficient Labor Needs Forecasting
At a time when businesses need to better manage their budget, the labor forecasting component of WFM software will prove a valuable resource, mainly because businesses can do a better job of preparing for spikes in client demand or declines in customer purchases. So, businesses with shift workers can know in advance exactly when they'll need more workers and when they may not need them at all.
4. Optimized Time Tracking
How well are your organization's time-tracking capabilities? No matter your answer, WFM software will enhance any internal time-tracking features through various online-based time sheets, point-of-sale devices (great for knowing how many hours employees worked at a specific part of the company), mobile apps, and time clocks. Once again, this is imperative to better understand how efficient or costly labor is at any time of the week.
5. Reduced Compliance Risk
One of the chief advantages of maintaining a WFM software system is that you can reduce any and all regulatory compliance risks. For example, a dispute could arise due to employee misclassification, resulting in expensive legal cases or reputational damage—and WFM programs can do an exceptional job of minimizing or eliminating compliance risks.
» Is your business payroll compliant? See how to ensure payroll compliance and avoid penalties
6. Valuable Analytics
Analytics isn't only for Major League Baseball (MLB)—WFM software offers terrific analytics for companies. One of the more appealing features of analytics is that built-in dashboards can manage and track worker compensation, address possible issues before they grow into challenges, and offer employers key performance indicators (KPI) over any period of time.
Ensure Company Growth With WFM Software
In today's ultra-competitive landscape, it's more important than ever to use every tool at your disposal to ensure you're operating and running a lean machine. Of course, with plenty of resources available, there are many reasons to adopt payroll software to achieve your corporate and office objectives.
» Looking to implement payroll software? Read TBR's payroll software reviews to find one that checks all your boxes.