Workforce Optimization: Enhancing Productivity and Efficiency

Workforce optimization enhances productivity by using data-driven strategies to improve efficiency and reduce operational costs. Boost customer satisfaction while maximizing employee performance with effective workforce management.

By Douglas Wade, Attorney

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Table of Contents

1. What is workforce optimization?

2. Examples of workforce optimization

3. Workforce optimization’s advantages

4. What is software for workforce optimization?

5. Workforce optimization methods

6. Last but not least

What is workforce optimization?

Simply put, workforce optimization means “work smarter, not harder.” We are entering an era where higher standards of customer satisfaction, delivery of services, and quality are expected; how can the workforce meet these demands? Increasing your operational expenditures by hiring more people isn’t always an option. Increasing output while maintaining or even increasing the size of your workforce should be your constant goal. Workforce optimization is a tool that can help with that.

With the rise of remote and hybrid work, companies are grappling with the question of how to maximize productivity while minimizing employee fatigue. Organizations can improve their operations and customer service with the help of workforce optimization. Find out what workforce optimization is, how it works, some examples, and what software and strategies are available.

As a collection of techniques and practices, workforce optimization (WFO) seeks to use data to increase organizational and personnel efficiency while decreasing operating expenses. The main goal is for the company to be successful. From marketing to finance, WFO affects the whole company. We aim to maximize results by streamlining procedures across all departments and employees. When competing in Formula One (F1), for instance, every team has essentially the same setup and cars. Typically, winning teams are those that masterfully coordinate every aspect of their operation, including their drivers, vehicles, engineers, mechanics, and departments.

Assuming complete implementation, WFO helps cut costs, boost efficiency, raise productivity, optimize tech expenditures, enhance customer service, automate processes, decrease errors, and gain comprehensive insights into every part of a business.

We use WFO frequently in the manufacturing logistics industry, as well as in retail and contact or call centers. Nevertheless, it has also become popular and helpful in various fields and for all kinds of jobs.

An essential part of WFO is data analysis, and among the data collected are:

Net promoter score (NPS)
Customer satisfaction ratings
Operational costs
Information on how well employees have done their jobs
Timetables for workers

Technology is essential for labor optimization because of the large amounts of data received and processed. Workforce optimization (WFO) software and technology integrate quality management, coaching, call recording, analytics (voice and text), feedback, surveys, and analytics (data).

Examples of workforce optimization

Here are a few real-world illustrations of what WFO usually looks like:

Time management

In order to create a work schedule for employees, this program records their attendance as well as their performance and other relevant criteria. You can assess whether you really need to recruit more people, and you can also handle issues like overtime and burnout. Since process can dictate workload, this is also strongly related to temporary labor.

A new labor system, temporary workers, or permanent hires may all be necessary during holiday seasons and other peak sales times, depending on a number of circumstances. The supply chain, warehousing, and retail industries are all concerned about this.

One UK bookshop, known as the “Book People,” employed WFO for all of their labor management needs, including forecasting, everyday administration, scheduling, processing holidays, and real-time reporting. As a result, customer service levels went up by 5%.

Time tracking

Software that records attendance or keeps track of time lets you know what’s happening at all times. For example, it reveals whether workers are arriving at the office late or early. Additionally, it is important to consider the possibility of “false clock-ins,” in which employees punch in for pals instead of themselves. A punitive action, though, it is not. On the contrary, it enables a company to examine their schedule and guarantee coverage around the clock, in all locations, during peak hours, and on holidays and weekends.

Using WFO, Ingenico was able to cut overtime expenses by 25% and resourcing time by 87% without sacrificing service quality.

Managing performance

Performance management also frequently makes use of WFO to put workers in the best possible position to succeed on the job. Asana and Trello are two popular task tracking platforms that can be helpful for keeping tabs on and improving performance. With these aids, workers may filter out the “noise” and focus on what really matters. Managing chores becomes easier on a personal level. For the company as a whole, it’s a boon for getting tasks moving in the best possible way.

Workforce optimization’s advantages

Better output with the correct amount of workers on hand all the time: Businesses can see the big picture when it comes to employee time and attendance. Because of this, they are able to efficiently handle client requests. Using WFO, businesses can learn about peak seasons and determine if they need to recruit temporary workers or implement new technologies to handle the increased demand.
Reduced expenses and more savings: You won’t have to worry about overstaffing or understaffing, two common causes of poor customer service that can cost you money. In addition to reducing expenses, it opens up chances for upselling and cross-selling. Automated WFO gives you the rundown on income potential in real time and helps you take action based on what you learn.
More satisfied and loyal customers: Customers get help and have their problems fixed quickly and correctly. A positive customer experience is the result of that. With the help of WFO, you may examine customer communications, identify the reasons behind customer behavior, and develop retention tactics. To better understand their customers’ habits and meet their demands, businesses might use WFO software. As a result, businesses can enhance customer satisfaction by responding to concerns and taking action more quickly. Customers who are satisfied are more inclined to buy from you again.
New possibilities: As new products and opportunities come out, WFO makes it possible for employees to move up in their careers. As a result, workers are able to give their all on the job, which boosts their chances of advancement both up and down the corporate ladder. Customer satisfaction rises in tandem with employee satisfaction.

What is software for workforce optimization?

Workforce optimization software would be useful for larger firms since it would be extremely difficult to manually conduct analyses and adjustments. When it comes to optimizing office productivity, WFO software is a great option. For instance, it can assess company needs in relation to factors like staffing levels, peak times, availability, finances, expertise, labor regulations, and agreements. Based on this, it can optimize the workforce, schedule tasks, make predictions, and evaluate data. Numerous WFO software vendors are available.

In order to make decisions in real time, the program must have an intuitive interface; otherwise, making decisions will be more difficult. In addition to providing real-time updates, it should have a sleek, contemporary design.

Adaptable to the needs of various departments and types of work within the organization is a must for any workforce optimization solution.

Perhaps the most crucial component is integrations. It needs to be able to communicate with the company’s internal systems and also work with common HR applications like SAP, Sage, BambooHR, and so on.

WFO software can be pricey, so before you buy, be sure it has all the features you need and some extras, like a mobile app, good customer support, and regular updates.

There are literally thousands of WFO applications available, but here are a few examples: Kronos, SAP, Monet Live WFO, BambooHR, When I work, Oracle Workforce Management, and much more.

Workforce optimization methods

Investing in your people and technology is essential for implementing workforce optimization in your company effectively. Let’s examine a few methods and guidelines for optimizing the workforce:

Focus on the needs of your customers

Offering first-rate service to customers in the most effective manner is the ultimate aim of workforce optimization. Reducing the number of staff on a shift can help you save money, but it may come at the expense of customer experience. So, you should always consider: How will this affect my customers? Think about what other sources of information are showing as well.

Customer interactions conducted over the phone will decline by 41%, according to a Gartner analysis. Considering this, it’s clear that organizations should shift their focus to alternative mediums like web chat and instant messaging.

Give workers everything they need to thrive on the job.

In this way, you’re giving the employees the freedom they need to do their jobs well. Imagine databases of information, gamification applications, etc. For example, if a company anticipates a rise in client inquiries sent through instant messaging, they should provide its customer care representatives with the necessary abilities through training. Or, teach people how to sell, upsell, and find other ways to make money if you’re releasing a new product.

Skill-based job and task matching

Some jobs will be better suited to people with particular skill sets than others. So, it’s important to have a solid picture of the activities that need doing and the resources needed to complete them, as well as an inventory of the talents that your staff possess (using tools like skills taxonomy and skills inventory). Employees are more invested when they have opportunities to put their expertise to use.

Put a scheduling tool to use

In order to prevent inefficiency, unnecessary overtime expenses, and exhaustion. By allocating staff time wisely, businesses can control client demand. Wrike and Monday.com are two well-known scheduling tools.

Establish achievable goals

With WFO, you can get the data and insights you need to set performance targets and benchmarks. Organizations should use this information to establish fair expectations for their staff. The expected standard in a contact center, for instance, would be to handle seven client calls per hour if that is what analysis shows is possible. Still, other considerations, such as handling a challenging customer, lunch breaks, and the amount of staff working, necessitate an agile strategy.

Adapt quickly

Many groups plan ahead of time for the next year. The COVID-19 pandemic is only one example of how technology may miss unanticipated outcomes. Consequently, make the most of your chances of having an accurate timetable by continually being nimble and planning in short bursts, even though it’s good to have an annual oversight. This degree of adaptability also makes good use of the WFO-generated real-time data.

Evaluate

Keep an eye on your WFO methods and tactics at all times. Companies should adapt their strategies to match the ever-changing demands of their customers and the products they offer. An organization may stay ahead of the curve when it comes to customer base activity and staff optimization by doing monthly, quarterly, and yearly assessments.

Make preparations for training and development

A thorough training approach is an essential component of any WFO. There will be areas where you are lacking in expertise that you must address. Hiring new people to cover those voids is the only choice, but it will cost a pretty penny. Another option is to provide training to staff members to help them acquire those necessary skills. Training on new tools and methods of work allows people to achieve more with less, which is the goal.

Last but not least

Workforce optimization, when done right, may yield huge rewards for many industries. The secret to success is optimizing your personnel using technology. WFO is a process that takes time. Deploying new systems and technologies slows the process down, allowing for revisions and improvements.

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