If you work with a contingent workforce , you'll know just how competitive this sector is. From ever-changing compliance requirements to increased labor costs, there are plenty of challenges to overcome. If you want to stay ahead of the game, you need to find the right workforce management (WFM) solutions so you can make data-driven decisions.
AI-powered workforce management tools are one of the best modern staffing solutions for helping businesses prevent last-minute absences and reduce costs. WFM tools can also assist with admin-he navy tasks like attendance management and payroll processing.
In this article, we'll take a close look at some of the challenges faced by traditional staffing methods and shed light on the key features offered by modern technology-driven contingent labor solutions. From compliance tools to employee self-service portals, there are dozens of tech-savvy ways in which you can streamline operations.
Defining Workforce Management: What Is It?
Workforce management (WFM) is a procedure that tracks and plans employee schedules, workloads, and compliance. Some of the most common tasks associated with workforce management include:
Scheduling and time tracking
Labor forecasting
Attendance tracking
Compliance management
Performance management
The specifications of WFM tasks and strategies will differ depending on an operation's size, growth expectations, and number of employees.
The importance of effective workforce management systems
When you have efficient and effective WFM processes in place, you can look forward to:
Increased flexibility
Improved financial planning
Better employee development
Compliance with local labor laws
Elevated productivity.
Challenges Faced With Traditional Industrial Staffing Agencies
Traditional staffing methods can be inefficient and reactive, often resulting in the following challenges:
Absenteeism
Did you know workplace absenteeism causes as much as $8.5 billion in annual production losses? This number is expected to triple by 2030.
Unscheduled time off work leads to unexpected expenses and stress for your HR team, which is why it's so important to keep your team showing up for their shifts without fail.
While some degree of absenteeism is unavoidable, in most cases, it can be prevented through proactive planning.
Inefficiency
Some of the factors that contribute to inefficiencies within the industrial environment include:
Labor costs
Lack of data
Disengaged employees
Lengthy processes
While inefficiencies ultimately result in less productivity and lower profits, there are plenty of digital tools that can help pinpoint problem areas and help you manage your workforce effectively.
High turnover and poor retention
Do you find that you have a revolving door of new employees? Recent studies estimate that it costs around 21% of an employee's salary to hire a suitable replacement. The longer a position remains unfilled, the more pressure there is on the rest of your staff, with other concerns including:
Health and safety issues
Overtime needs
Overall performance
Workplace morale
You can reduce high turnover rates by offering competitive, improving talent management and streamlining onboarding processes.
Labor costs
In addition to employee salaries, one of the highest labor costs is talent acquisition. Finding the right employees for your operation can be a tedious and time-consuming process that usually ends up costing more than it should.
Other unexpected labor costs include workplace injuries and increased sickness rates. Fortunately, human capital management tools can help you plan accordingly and reduce your labor expenses.
The Rise Of Tech-Enabled Staffing Platforms
Traditionally, contingent staff would be sourced and managed by in-person agencies. However, tech-enabled platforms have gained immense popularity thanks to their ability to find reliable workers.
Features like automated scheduling and predictive analytics reduce the risk of human errors, automate admin-heavy tasks, and minimize administrative burdens. Additionally, the operational leverage gained by being able to vet 10,000 people frees up time to focus on higher impact initiatives and better customer service.
These days, AI is used in a diverse variety of related applications, including employee scheduling software and workforce planning tools among many others. There are plenty of incredible options available, and there is something to suit every operation.
The Best Workforce Management Tools
Most modern workforce management software offers the following features:
Predictive analysis tools
In recent years, predictive analytics has transformed workforce management by helping HR teams with:
Anticipating labor demands
Optimizing schedules
Reducing turnover rates
Minimizing downtime
Preventing bottlenecks
Improving productivity
By analyzing historical data and real-time trends, predictive tools can forecast future staffing needs, ensuring the correct number of workers are scheduled at the correct time. The main benefit is that these tools can address workforce shortages before they impact operations.
Automation tools
You can say goodbye to the days of tedious manual data entry, as automation in workforce management is here to stay. Automation tools save you time by streamlining repetitive processes such as payroll, compliance tracking, and shift scheduling.
These tools are typically powered by AI, which helps them ensure that workforce allocation is optimized based on data-driven demand. The aim is to reduce labor costs while maintaining productivity.
In industrial settings, automation also minimizes human error in critical HR tasks, such as tracking certifications and overtime management.
Real-time worker tracking
Real-time worker tracking tools provide live updates regarding worker locations and task progression, thus improving workforce visibility, safety, and productivity.
These innovative applications, which are often integrated with GPS, RFID, or IoT sensors, help managers ensure workers are in the right place at the right time.
For operations that require strict compliance and security, real-time tracking ensures accountability and helps prevent any unauthorized access.
Advanced reporting tools
Comprehensive reporting tools provide HR and finance teams with a range of useful data-driven insights. The fully customizable dashboards allow you to easily analyze KPIs, identify workforce challenges, and make informed decisions to improve productivity.
In industrial settings, tools that offer advanced analytics and reporting capabilities are essential for strategic workforce planning and staying ahead of the competition.
The Importance Of Supporting Hands-On Operations
No matter the industry, workforce management tools need to support hands-on operations, ensuring seamless coordination between workers and managers.
These tools provide real-time visibility into workforce activities, enabling managers to assign tasks as needed and monitor progress.
Features such as digital checklists, shift planning, and mobile workforce allocations enhance real-time decision-making, allowing for quick responses and improved workflow efficiency.
FAQs
Why do I need modern workforce planning tools?
Effective workforce planning is essential for aligning employee availability with workplace demands, ensuring higher productivity rates and better resource allocation.
How much does workforce management software cost?
The cost of workforce management software depends on a variety of factors, including the size of your operation, the number of employees, and your specific needs.
Vendor fees are typically billed monthly or yearly, although once-off solutions are also available. The cost of these applications is well worth the rewards, as you can look forward to:
Improved employee engagement
Streamlined payroll management
Optimized workforce
Insightful data
How do I use WFM software and tools?
Most WFM platforms need to be accessed using a digital device such as a tablet or laptop. Typically, there is a user-friendly interface that can be used to adjust settings and access data. It's often quite easy to integrate this software with any existing systems you have.
Some tools may offer mobile apps or require additional devices. With plenty of options to choose from, you're sure to find a system that aligns with your needs.
The Future of Workforce Management
As industrial staffing evolves, embracing AI-driven workforce management tools is no longer optional—it’s essential. From predictive analytics to automated scheduling, modern WFM software streamlines operations, reduces labor costs, and enhances employee engagement. Businesses that invest in these solutions gain a competitive edge by optimizing workforce efficiency, maintaining compliance, and improving overall productivity. By adopting the right technology, companies can future-proof their operations and ensure long-term success in an increasingly complex labor market.
