With the introduction of new norms in the workplace, organisations prefer “work smarter, not harder” strategy. Your workforce would often find it hard to cope with the increasing customer demands, service excellence and the challenges faced due to the ever-evolving technological changes.
Hiring more employees to enhance productivity is not always a good choice. Rather it will increase operational costs. So, consider increasing output with the same workforce.
As employees now opt for remote and hybrid working, organizations must carefully select the operating model to optimize productivity while reducing burnout.
Thus, workforce optimization is the process of helping companies not only to operate efficiently and provide excellent customer service.
This blog is a comprehensive guide explaining the concept of workforce optimization in detail.
What is Workforce Optimisation?
Workforce optimisation (WFO) is a set of plans and policies. With the help of data, it aims to enhance staff and organizational efficiency while reducing operational costs. The objective is to streamline the processes between every department and employee to maximize results.
For instance, Company A and Company B have access to similar hardware and software resources. The company that would excel is the one that effectively optimise their teams, projects, and workflows. This optimization includes refining software development processes, enhancing team collaboration, and implementing data-driven decision-making to stay ahead in innovation and market competitiveness.
Executing Workforce Optimisation
Here are some ways of executing workforce management optimization in the workplace:
1. Dynamic Scheduling
This is done through a system enabling to manage overtime and burnout. Also, it helps eliminate understaffing and overstaffing. It reduces the basic HR functions, enhancing efficiency.
For example, a retail company using workforce optimization (WFO) software schedules employees based on historical sales data and peak traffic hours. The system identifies that customer traffic peaks on weekends from 2 PM to 6 PM and schedules additional staff during these hours while reducing coverage during slower periods.
Moreover, it considers individual employee preferences and availability, ensuring shifts align with both business needs and staff satisfaction.
2. Time Tracking
After remote working becomes seemingly applied, time tracking or attendance software is of great use to managers. It records the sign-ins and sign-outs while eradicating buddy-punching.
Furthermore, it allows an organization to get covered for all times, across all geographies, business hours, peak hours, and public holidays/weekends.
3. Skill-Based Task Allocation
Assigning tasks based on employees’ skills and expertise rather than simply distributing work evenly. This involves using workforce management tools to track employee skills, certifications, and performance metrics. By matching tasks with the most qualified employees, companies can enhance productivity, reduce errors, and improve job satisfaction.
Benefits of Workforce Optimisation
1. Accurate Forecasting
The ideal staffing level is what every successful business requires. Through workforce optimization, employers can get the whole picture of worker attendance and productivity. As a result, they can successfully handle client requests.
WFO helps businesses determine whether to add technology to help them handle the increased demand for work or hire temporary workers during busy seasons.
2. Lower Costs and Increased Savings
Both overstaffing and understaffing can be avoided, which would result in lost revenue. It not only reduces expenses but also opens doors for upselling and cross-selling.
Furthermore, real-time guidance and actionable insights for revenue prospects are provided by WFO that integrates automation into the business.
3. Improved Customer Service and Retention
Clients receive assistance, and their questions are promptly and effectively answered. It results in a positive consumer experience. WFO assists you in analysing consumer communications, comprehending the underlying reasons behind consumer behaviour, and putting client retention plans into practice.
Additionally, WFO software enables businesses to learn more about the behaviours of their clients and how best to meet their needs. It helps a company to act more quickly in response to consumer concerns, enhancing customer happiness in the process. A satisfied customer is probably going to come back.
4. New Opportunities
WFO develops internal career mobility in tandem with the development of new goods and prospects. Because it enables workers to function at their best, there is a greater chance of internal movement, either vertically or horizontally. Customer satisfaction rises in tandem with employee satisfaction.
Workforce Optimisation Strategies
Investing in your staff and technology is the best way to effectively implement workforce optimization in the workplace. Discussed below are some strategies and best practices for workforce optimisation:
1. Adopt a Customer-Centric Perspective
The best customer service delivered in the most effective manner is the aim of workforce optimisation. Although paying fewer workers during a shift saves money, it may also result in worse customer service. Thus, constantly consider how this may affect your clients. Think about what outside data is showing as well.
There would be a 41% decrease in phone-based client interactions, according to a Gartner analysis. As a result, the use of other platforms like online chat and instant messaging is probably going to grow, which is a clear sign that an organisation should definitely go in this direction.
2. Provide Employees with the Tools
By doing this, you’re enabling the staff to carry out their duties with effectiveness and efficiency. Consider gamification tools, knowledge bases, etc.
For example, if a company anticipates a rise in the number of instant messaging enquiries from customers, it should train customer care representatives so they can become proficient in this area.
Alternatively, if you’re introducing a new product to the market, offer the know-how to market, upsell, and find new sources of income.
3. Set Realistic Goals
WFO makes it possible to extract data and insights, which helps to set performance benchmarks and targets. So, employers must set fair standards for their staff members.
For instance, in a call centre, the expected benchmark should be seven client calls handled per hour on average. But you must also consider other elements, including handling a challenging client, taking lunch breaks, and having multiple workers. Hence, the strategy should constantly be flexible.
4. Use a Scheduling Tool
It helps prevent burnout, overtime expenses, and inefficiencies. Employers can control client demand by allocating personnel time effectively. A few well-liked tools for scheduling are Wrike, Monday.com, Smart Workforce etc.
5. Be Agile
Many organisations create their annual schedules ahead of time. But frequently, this can overlook unanticipated happenings or incidents (like the COVID-19 pandemic). Consequently, to increase the likelihood of an accurate timetable, always be flexible and plan in short bursts, even though having an annual oversight is a good idea.
Additionally, this degree of adaptability efficiently utilises the real-time data generated by WFO.
6. Review
Review your WFO techniques and tactics on a regular basis. A company’s responses to changing products and consumer needs should also be flexible. An organisation may make sure that its staff is optimised to meet the needs of its customers and that it is aware of what is happening with its client base by conducting monthly, quarterly, and annual reviews.
7. Have a Training and Development Plan
Without a thorough training plan, no WFO can be considered complete. There will inevitably be a skills gap that needs to be filled. To close those gaps, hiring is the only option—but this is an extremely expensive fix.
Whereas, the other is providing personnel with the necessary skill training. Employees should be able to accomplish more with less effort, and learning new tools and workflow techniques will help them do so.
Final Words
Workforce optimisation has enormous potential benefits for a variety of enterprises when correctly applied. The secret to success is maximizing your workers through the use of technology.
Lastly, WFO takes time to manifest. It is a steady process that gets better with time as new systems and technologies are implemented.