Technology adoption is critical to succeeding in today’s highly competitive digital landscape. Companies automating their processes perform better than those relying on manual processes. Consequently, there has been a paradigm shift toward digital transformation in the last five to ten years.

When it comes to workforce automation, labor management systems stand out as the best solutions. These cloud-based software applications help businesses manage and optimize their workforce. For example, a labor management system offers powerful features such as time tracking, staff scheduling, time clock & timesheets, reporting, and performance evaluation.

Besides, they are also equipped with exclusive functionalities like automated control room management, staff vetting, and patrolling management. The use of a high-tech labor management system brings efficiency to the workplace and enables team leaders to make their teams more productive.

In this article, we’ll explore what a labor management system is and how it can benefit your business.

What Is a Labor Management System?

So, you’ve heard of a labor management system and you’re curious about what it is and how it could benefit your business. Let’s start with the basics.

A labor management system (LMS) is a software application that helps businesses manage employee scheduling, time tracking, and attendance. It makes it easy for managers to keep track of employee hours and see where there might be room for improvement. Besides, companies can save their time and resources and gain a competitive edge by automating their workforce management operations.

LMS software can also help businesses reduce payroll costs by streamlining the process of tracking employee time and attendance. Finally, a good LMS will help businesses keep their employees happy by making it easy to schedule shifts and track leave time.

How Can a Labor Management System Benefit My Business?

A labor management system (LMS) serves as a productivity enhancement suite. Entrepreneurs can use these cloud-based solutions to track their employee hours, manage time off and vacation requests, and calculate overtime. Similarly, labor management systems make payroll processing more accurate and faster and bring transparency to operations.

Here’s how a labor management system can help you grow your business:

  1. You can get actionable insights to make data-driven decisions regarding staff management and operations
  2. The software empowers your teams to manage shift requests and show their availability in advance for upcoming weeks or months
  3. Project managers can use labor management software to track the time spent by their workforce to complete each task
  4. Data provided by these software systems can be used for labor forecasting and budgeting
  5. A good LMS can also help you stay compliant with labor laws
  6. Team leaders can evaluate their employee performance and make informed decisions without any discrimination
  7. Advanced employee scheduling makes sure you never miss a tight deadline
  8. Automation eliminates the possibility of human error, keeps your clients happy, and makes your employees satisfied with their jobs
  9. Ultimately, a labor management system contributes to organizational growth, higher team productivity & efficiency, and increased profitability
  10. Lastly, managers can automate repetitive tasks like time tracking and create advanced schedules with a few clicks. Hence, they can save their precious time and focus on critical areas like business development and innovation.

What Are the Features of a Labor Management System?

Till now, you must have learned the basics of a labor management system. Now, let’s explore it further and explain some of the key features of a labor management system.

A good labor management system will automate the process of tracking employee time and attendance. This is done by capturing employee punches in and out, as well as tracking hours worked through a time clock or QR code. Moreover, you can also verify your employees’ identity and access their real-time location.

Modern labor management systems can:

  1. Record clock-ins and clock-outs
  2. Track employee hours and breaks taken during a shift
  3. Create employee schedules
  4. Manage staff attendance, absence, and leaves
  5. Generate timesheets for each shift
  6. Provide detailed weekly or monthly reports in different formats
  7. Calculate billable hours with a few clicks
  8. Process payrolls or integrate
  9. Forecast labor or budgets
  10. Offer data-driven insights for informed decision-making.

Additionally, advanced labor management systems also offer some exclusive features such as:

  1. Automated control room management through check calls system
  2. Automated paycheck and invoices generation
  3. Overtime calculation
  4. Automated staff vetting as per local standards (Like BS7858)
  5. Third-party integrations for extended functionality and better performance.
  6. Staff identity verification and real-time location access

How Do I Choose the Right Labor Management System for My Business?

So, you have decided to use a labor management system, but are not sure where to start. Don’t worry, we bring you some valuable tips to help you choose the right labor management system for your business.

Therefore, always consider the following key factors while choosing the right labor management system for your business:

  1. What are your specific needs?
  2. What is your team size?
  3. What features are important to you?
  4. How much is your estimated budget?
  5. How tech-savvy are your employees?
  6. What is the scope of your business?
  7. What is your industry?
  8. What are your projected goals?

Once you’ve answered these questions, you’ll be able to start narrowing down your options. Nevertheless, it’s important to keep in mind that not all labor management systems are created equal, so you’ll want to make sure you find one that fits your specific needs.


A Labor Management System is a high-tech solution that enables you to manage your workforce more efficiently. By automating certain processes and tracking employee performance, you can save yourself time and money, while improving your workplace productivity.

A good labor management system will allow you to:

  1. Automate timeclock and payroll processing
  2. Track employee performance and identify potential issues
  3. Get real-time updates on staff availability
  4. Make data-driven decisions based on actionable insights
  5. Reduce the amount of paperwork associated with HR tasks

If you’re looking for a way to make your workplace more efficient, try Smart Workforce. This fully automated cloud-based WFM helps businesses achieve operational efficiency and boost team productivity.

Contact us today to start your free trial or book a free demo.