What is workforce management (WFM)?
Workforce management (WFM) connects people, processes, and technology – helping businesses manage staffing with clarity, confidence, and genuine care for employees.
It seems like yesterday when workforce management (WFM) was a straightforward, administrative exercise that hummed along in the background. But in the past few years, some seismic shifts have taken place in the world, jolting WFM into a far more strategic and integral position in modern companies. Of course, the pandemic ushered in a lot of sudden change, turning entire businesses into work-from-home operations almost overnight. We’ve also seen cultural and social trends that have led to some major rethinking in staffing and management. And while the rapid advancement of AI and software technologies has brought enormous benefits and efficiencies, it’s also having an ongoing impact on traditional workflows and employee expectations. But the good news is that today’s WFM solutions have kept up with the changes. They are better than ever at forecasting, scheduling, and leveraging all kinds of data to give businesses and HR teams the insights, power, and agility they need to navigate the evolving world of work.
Workforce management definition
Workforce management is a set of processes and tools used by organisations to optimise employee scheduling, forecast labour needs, manage compliance, and maximise workforce productivity and efficiency.
The evolution of workforce management solutions
From manually recording employee hours on spreadsheets and punch cards to the complex software-driven practise of today, workforce management tasks have undergone significant change. As businesses grew more complex and regulations and compliance became more sophisticated, organisations needed smarter ways to handle staffing and scheduling.
Today’s cloud-based WFM solutions have made things easier and more accurate. Managers can count on real-time analytics and forecasting to handle staffing surprises, and employees can easily manage shifts or request time off directly from their smartphones. Automated compliance features help catch issues before they become problems, keeping everything running smoothly. In short, modern workforce management tools do much more than just save time – they improve collaboration between employers and teams in an ever-changing workplace.
Contingent workforce management (and other recent shifts)
Contingent workers are defined as temporary, freelance, or contract employees. The rise in this type of external workforce model has reshaped the traditional HR landscape. More than ever, businesses depend upon flexible staffing options to close skills gaps, handle shifting demand, and scale as needed. But this flexibility can bring with it some challenges, including diminished workforce visibility and difficulty in maintaining consistent standards.
In addition to more contingent workers, today’s companies also must typically manage a much larger remote workforce than existed before the pandemic. Each remote workspace or personal computer must meet stringent safety, security, and regulatory requirements. It takes robust and powerful workforce management solutions to help navigate this complexity and ensure proper oversight, compliance, and a consistent employee experience – no matter where that work is happening.
Core components of workforce management
Workforce management is an orchestrated set of functions that work together to keep your operations running smoothly. These components help you balance efficiency, workplace compliance, cost control, and employee well-being – and maintain good labour relations.
Demand forecasting and labour planning
Avoiding labour shortages or excess staffing requires the ability to accurately predict future staffing needs. You can improve your labour provisioning plans by analysing historical data, seasonal trends, and external factors like customer demand or economic conditions.
Employee scheduling
Creating optimised schedules makes sure the right number of employees with the right skills are ready where and when they’re needed. Effective scheduling includes shift planning, shift swapping, and the ability to manage compliant requests for time off.
Time and attendance tracking
Achieving accurate payroll and compliance means monitoring when employees clock in and out, tracking hours worked, and dealing with overtime. WFM minimises errors and reduces administrative burdens by smoothly automating these processes.
Leave and absence management
Automating the leave handling processes lets managers handle vacation requests, sick leave, and other absences with greater simplicity. This means filling gaps proactively and staying productive without overburdening other team members.
Performance management
Measuring and managing employee performance helps your team stay engaged and productive. WFM tools can help you set performance targets, monitor key metrics, and provide feedback. This improves both productivity and satisfaction.
Compliance management
Complying with labour laws, contracts, and industry-specific regulations is essential. WFM systems help enforce labour rules automatically, alerting managers to potential compliance risks such as overtime violations or missed breaks.
Reporting and analytics
Collecting and analysing labour data allows you to make more informed decisions. WFM tools provide insights into productivity trends, labour costs, and scheduling patterns – empowering you to continually refine your workplace strategies.
Top 5 benefits of effective WFM
As your business grows, managing your team effectively becomes increasingly critical to your success. Here are a few of the many benefits of good WFM:
- Increased productivity
When staffing levels match actual workload demands, employees spend less time waiting around and more time doing meaningful tasks. Effective workforce management helps eliminate idle hours and burnout, ensuring your teams stay energised, focused, and productive.
- Lower labour costs
Good workforce management helps you accurately forecast future staffing needs. This prevents over-hiring during slow periods or being understaffed during busy ones. With smarter scheduling based on real data, you keep payroll expenses predictable and aligned with actual demand.
- Improved employee satisfaction and retention
Employees today expect fairness, flexibility, and transparency from their employers. Modern workforce management systems provide exactly that, giving employees control over their schedules, making it easy to request time off or swap shifts. This helps build trust, boost morale, and significantly reduce turnover rates.
- Stronger compliance and reduced risk
Labour regulations are in a constant state of change. With automated compliance monitoring, advanced workforce management solutions automatically track complex rules such as overtime limits, mandated breaks, and certification expirations. This reduces the risk of penalties and litigation.
- Better customer experiences
When the right people are where they should be, your customers benefit and your operations improve. Whether you’re running a hospital, a retail store, or a manufacturing line, workforce management makes sure your team is ready and able to provide the best and most informed service possible.
Workforce management tools and technologies
Here are a few of the core technologies that power today’s best solutions:
- Artificial intelligence (AI) and machine learning
AI and machine learning deliver exceptionally accurate staffing forecasts based on historical trends, seasonality, and external variables. This has transformed workforce management by providing actionable recommendations and alerting managers to potential scheduling conflicts, compliance risks, or staffing shortages. Knowing what’s coming lets you handle issues before they turn into problems.
- Cloud-based connectivity
Cloud-based workforce management platforms keep your data securely in one place, providing real-time access across teams, locations, and departments. Employees and managers can easily view schedules, request time off, or even swap shifts from any location and on any device. This unified, cloud-based approach enhances communication, transparency, and productivity across your business.
- Mobile-first user experience
Every one of your employees has a smartphone, so why not leverage that? Today’s leading workforce management solutions deliver intuitive, mobile-first interfaces, allowing employees to manage their own schedules directly from their devices. When they can receive immediate notifications, easily manage their availability, and feel greater autonomy and control, your teams feel more satisfied and engaged.
- Real-time analytics
Real-time data analytics allow managers to quickly identify emerging workforce trends and address issues as and when they happen. Instead of reacting after things have already happened, real-time analytics enhance agility by allowing for swift decision-making, rapid schedule adjustments, workload rebalancing, and immediate compliance responses.
- Automated compliance monitoring
Advanced workforce management solutions automatically track hours worked, overtime, mandated breaks, and required certifications. These built-in compliance tools instantly flag potential violations to ensure that your workforce remains compliant with all rules and labour regulations. Beyond reducing legal risks, this helps to minimise costly admin tasks.
Examples of workforce management in key industries
Each sector has its own unique staffing needs, regulatory demands, and operational complexities. Here’s how advanced WFM solutions are being used in some key industries:
Automotive manufacturing
WFM helps ensure that technicians with the right skills are available where and when they are needed. This reduces downtime, keeps production lines efficient, and minimises costly disruptions – helping you boost efficiency and maintain strict compliance.
Food and beverage
Seasonal fluctuations and variable demand require dynamic workforce scheduling and adjustments to keep food and beverage production flowing smoothly. WFM manages your staffing on the fly, keeping your operation compliant and your people safe.
Industrial manufacturing
The complex operations of industrial manufacturing require matching availability of equipment and skilled staff to meet demand, without compromising safety. WFM offers AI-powered forecasting to meet labour needs while minimising unwanted downtime.
Aerospace and defence
Long project timelines, strict regulations, and a highly specialised workforce make WFM indispensable in this sector. It allows for the matching of specific project stages to skilled staff while ensuring internal and compliance standards at every step.
Healthcare
Healthcare work can be unpredictable, with relentless workloads and complex regulations. WFM built for healthcare helps balance staffing and patient needs, using mobile-friendly scheduling to reduce staff burnout while improving care outcomes.
Fashion
Fashion faces a highly fluid marketplace of shifting consumer preferences and evolving supply chains. WFM uses forecasting and proactive labour adjustments to support agile staffing, keeping fashion brands responsive to the latest market trends.
How to choose a workforce management solution
Choosing a workforce management solution is about finding a tool that works equally well for your team and your business. Here are key things to consider:
Industry-specific capabilities
From complex scheduling to rigorous regulatory demands, every industry faces its own unique set of HR challenges. Look for WFM solutions that are not “one size fits all” but that are actually built with your specific industry needs in mind.
Integration with existing systems
Your WFM tool should effortlessly integrate with your payroll, HR, and ERP systems. Seamless data sharing ensures accuracy, reduces manual entry, and streamlines administration, helping your teams spend less time on paperwork.
Automated compliance
Labour laws and regulations can change and differ by region. Choose a solution with built-in compliance automation – one that proactively monitors overtime, breaks, and union agreements, ensuring you stay compliant without constant manual checks.
Scalability and adaptability
As your organisation grows, your WFM solution should evolve with you. Look for software that easily scales across new locations, teams, or even global operations. Flexibility today prevents costly disruptions tomorrow.
Ease of use
Even the best system will fail if employees find them confusing or difficult to use. Prioritise intuitive, user-friendly interfaces that let workers quickly swap shifts, request leave, or check schedules easily. This drives high adoption and employee satisfaction.
Conclusion
To thrive in an unpredictable future, organisations must approach workforce management strategically. This means choosing solutions that genuinely meet your unique needs and give your teams intuitive tools they’ll love to use. Ultimately, successful workforce management solutions put people first and prioritise fairness, transparency, and flexibility. By thoughtfully combining advanced technology with a genuine commitment to employee well-being, you’ll build a resilient workforce, ready to confidently face whatever is on the horizon.
See how Infor’s ultra-flexible, AI-powered workforce management software can help you transform labour planning, engagement, and compliance.