Workforce Management- What is it And How It Works

By Kashuf Shahid, Oct 15, 2020


For a business to run efficiently, it’s imperative that all operations are handled smoothly. Many times, even the smallest error can cause huge losses. Research shows that about 63% of Australian businesses waste time on admin tasks. One such administration task is employee scheduling. Employers spend many hours on scheduling their employees’ shifts without the guarantee that the schedule will be followed. Managers are often buried under stacks of papers, spreadsheets, taking weeks to create a proper schedule that satisfies all. Even then, there’s room for error that can turn everything upside down. It’s reported that a business with 100 employees spends an average downtime of 17 hours a week clearing up communication, which translates to an annual cost of $528,443. That’s where workforce management comes it.

What is workforce management?

Workforce Management or WFM is a set of processes and tools that ensure that the right employees are performing the right tasks at the right time. It maximizes work performance and efficiency levels in an organization.

Workforce management processes

The workforce management system hinges on processes that include managing staff schedules, forecasting, and budgeting, performance analyzing, human resource management, leave planning and more. Workforce management is important because, with the correct use of technology, you can effectively lower your labor costs and optimize performance.

Staff Scheduling

Scheduling in workforce management consists of creating a schedule for hourly employees so they can meet the current and future demands of an organization by predicting the amount of work that needs to be done. Some of the industries that hire hourly workforce are retail, manufacturing, and construction. It helps smooth out the transition between one shift to another and ensure that operations never stop. Inefficient scheduling can cause disorganization in the company and result in huge losses. It causes employees to be frustrated and is one of the most common reasons why they quit. Workforce management systems like Squadly Bizz, reduce errors and maximize the company’s competency levels.

Labor Forecasting

Labor forecasting is the process of predicting daily work demand and choosing the best-fit employees for shifts in an orderly manner. In WFM systems, employee profiles display job history and work performance over a period of time through which their capabilities can be judged. This makes it easier to delegate tasks to the best-suited workers. Workforce scheduling software helps managers create schedules in advance and notify employees in case of any changes. When your workers know what to do and when to do it, productivity increases.

Time tracking and attendance

WFM tools that track time and attendance help employers keep a record of working hours and shows a pattern of employee availability. This helps the company be better prepared for unplanned changes or absence. Time tracking tools record over-time, and ensure that employees adhere to shift regulations set by the company.

One example is Squadly Bizz’s meal break feature which lets users clock in their meal breaks during working hours. Workforce management is a good way to ensure employees don’t slack during working hours and complete tasks responsibly.


Budget planning is an essential aspect of running an organization. It is an estimate of a company’s future revenue and expenses and is a challenging process. Over or underestimating the budget forecast can lead to serious expenses and missed financial opportunities. It could result in incomplete projects and cause employers to run out of cash flow and be in a position to take loans.

The best way to get budgeting right is by making a team of planners and forecasters who are good at their job. One way to do that is by putting them in a Squad of people with similar skills. With the help of a budgeting team consisting of experts, organizations can make sure they don’t err in this department.

How Workforce Management helps businesses?

Proper implementation of workforce management helps businesses flourish. As tools provide analysis of employee performance and tasks are delegated to those who can do the best, productivity in the workforce increases. Workforce management helps reduce errors and increase overall efficiency. When shifts are systematically scheduled, working hours are easily tracked and employees can work based on their availability, the organization runs smoothly. This leads to employee satisfaction and high morale in the workplace.

A good workforce management solution increases customer satisfaction, enhances administrative efficiency, increases employee engagement and reduces compliance risk. In order to make your business reach new heights of productivity, you can download the Squadly Bizz app that will help you do that and more.


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