Why Peope Resist Change?

WFM / 02 Sep 2024

Change often meets resistance, even when it offers clear benefits. Why do people find it so hard to let go of old habits? This article dives into the psychology behind change management and reveals the deep-rooted reasons for resistance. Discover how fear, uncertainty, and ingrained patterns can hinder your organization, and learn how to overcome these obstacles for a smooth transition. Read on to gain insight into the human side of successful change

The Psychology Behind Change Management: Why Do People Resist Change?

Welcome to the first in a series of articles discussing change management and how you can encourage employees to adopt new solutions.

Change is a constant in both personal and professional contexts, yet it’s often met with resistance, even when the change in-question is highly beneficial (for example, implementing a new software system could increase efficiency and improve the employee experience, benefiting both parties).

Unfortunately, such investments often go under-utilized as employees fail to adopt the new tools for various reasons. In fact, Forbes reports that 84% of digital transformation initiatives are unsuccessful. Likewise, an international study by IBM reports that almost 60% of organizational change projects do not fully meet their objectives.

Research by McKinsey also shows that 72% of transformations fail due to resistance from employees (39%) and a lack of management support (33%).

Understanding why people resist change is crucial for effective change management. So, this article explores the psychology behind resistance to change – and in future articles, we’ll look at what can be done about it.

The Psychology Behind Resistance to Change

Resistance to change is a complex and multifaceted phenomenon, and it can manifest in various forms, ranging from overt opposition to subtle, passive behaviors.

At its core, it involves a reluctance or refusal to accept alterations to the familiar, which can be driven by fear, uncertainty, and discomfort with the unknown. In fact, fear of change is instinctive; human evolution depended on maintaining control of our environment, making the destabilizing nature of change rather unwelcome.

We won’t delve into evolutionary psychology in this article, but we’ll refer to a few influential theories on behavior change, which provide insights into how we can inspire change within the workforce.

The Fogg Behavior Model

B.J. Fogg’s Behavior Model provides a useful framework for understanding why people resist change, and how it can be encouraged. According to this model, behavior is a product of motivation, ability, and prompts.

Motivation

Externe signalen zijn nodig om verandering in gang te zetten. Zonder deze signalen ondernemen zelfs de meest gemotiveerde en bekwame mensen geen actie.

Ability

The perceived ability to execute or adapt to the change plays a crucial role. If the change is seen as too complex or beyond one’s capability, resistance ensues. Simplifying the change process and enhancing individuals’ confidence in their ability to adapt can mitigate resistance.

Kennis

External cues are necessary to initiate the change. Without these, even motivated and capable individuals might not take the necessary actions.

Daniel Kahneman’s “Thinking Fast & Slow”

Daniel Kahneman’s dual-system theory in “Thinking, Fast and Slow” explains how our brains process information and make decisions. He distinguishes between two modes of thought which can hinder or help facilitate change, respectively:

System 1 (Fast Thinking)

This is the automatic, unconscious, and effortless mode of thinking that relies on heuristics (mental shortcuts), and it’s estimated to make up 98% of our thinking. When operating from this mode, we quickly assess new information based on past experiences and established patterns.

System 1 thinking often leads to change resistance because it favors routine and familiarity. In this mode, we may quickly dismiss new information that contradicts established patterns, as we unconsciously seek to maintain the status quo and avoid potential risks.

System 2 (Slow Thinking)

This is the deliberate, analytical mode of thinking that supports the processing of new information, but it requires more cognitive effort. System 2 thinking can be encouraged by creating environments/situations that allow individuals the time and resources to deliberate and understand the change. In some cases, however, employees will not be motivated to engage in such thought processes. For example, disengaged front-line employees that simply want to do their job and get home may have no interest in stopping to think about any changes to their tasks. In this scenario, more creativity is required to encourage cooperation.

Robert Cialdini’s Seven Principles of Persuasion

Robert Cialdini’s principles of persuasion offer valuable insights into the psychological triggers that influence people’s willingness to accept change, and provides a basis for persuading them to embrace it;

Reciprocity:
People feel obligated to return favors. If employees perceive that the organization is providing them with support and resources, they may feel more inclined to reciprocate by embracing the change.
On the other hand, if the change is simply presented as something that the employee must adopt – with nothing that suggests it’s in their own interests to do so – change is less likely.
Commitment & Consistency:
People strive to be consistent with their commitments; if individuals have publicly committed to a change, they are more likely to follow through to maintain consistency with their self-image.
Social Proof:
People look to others for cues on how to behave and are generally influenced by the actions of those around them. So, observing peers successfully adapting to change can help resistant individuals to follow suit.
Authority:
People tend to follow credible experts and authority figures that they perceive as trustworthy and knowledgeable. Endorsement and advocacy from respected leaders can therefore enhance the acceptance of change.
Liking:
People are more likely to be persuaded by those they like. Building positive relationships and trust within the organization can make employees more receptive to change initiatives.
Scarcity:
People value what is scarce. Emphasizing the unique opportunities and benefits of the change can create a sense of urgency, as individuals are motivated to act before the opportunity is lost.
Unity:
When individuals feel part of a cohesive group, they’re more likely to support collective decisions. So, emphasizing shared identity and common goals can foster a sense of unity, leading to a collective effort towards embracing change.

More Reasons for Change Resistance

Research by P rosci reveals that resistance to change is most common among mid-level managers, followed by front-line employees, and there are different causes within each group. The top five reasons employees resist change are as follows;

Lack of Awareness about the Reason for Change

We can relate this back to the principles of motivation and reciprocation; do employees understand what’s in it for them? If so, they may be more likely to return the favor of having their role improved.

Change in Job Role

This pertains to any required behavioral changes, changes in workload, and so on. Employees may not want to learn to use a new system or may perceive it as too time-consuming; in other cases, they may perceive it as reducing their autonomy, or there may be a simple lack of incentives. Once again, it all comes down to motivation.

Fear of the Unknown

Regarding new technology, fear may stem from the concept of their own contributions becoming less relevant – for example, the fear of AI replacing them.

If we consider an example in the retail sector, introducing self-service kiosks may spark the fear that shop floor staff will be assigned less hours or even lose their jobs.

Other causes of concern include uncertainty about the organization’s future, and the possibility of increased monitoring – which may link to fears about their performance (i.e., ability, in the Fogg Behavior model).

Lack of Support from or Trust in Leaders

If managers are also resisting the change, employees will likely follow suit. Mistrust in leadership also contributes to resistance.

Exclusion from Decisions Related to Change

Not including employees in the decision making process about the design of new solutions and their implementation process can make them feel threatened and unheard, reducing their willingness to embrace change.

Reasons Managers Resist Change

The research also revealed the top five reasons managers resist change:

Issues with organizational culture
Lack of awareness and knowledge about the change
Lack of support and commitment for change management
Misalignment between personal incentives and project goals
Lack of confidence in their own ability to manage change

Burnout

Gallup reports that 76% of employees feel burnt out at work at least some of the time. This indicates that the majority of today’s employees are overworked, stressed and fatigued, and potentially experiencing the physical symptoms of burnout, including headaches and digestive problems. In emotional terms, burnout leads to apathy and demotivation.

If an individual is barely functioning, can they really be expected to handle change or embrace it with arms wide open?

Since the pandemic, mental health and wellbeing has received greater attention in the workplace, with flexible working arrangements being introduced across many industries, and a greater awareness on issues such as burnout helping employers to cater to employees’ needs more comprehensively.

Whether the most common initiatives have been successful or not is another matter, but it’s important to consider the possible role of stress and burnout in increasing resistance.

Technological Vs. Process Change

Are there any differences in resistance depending on what is changing? Do changes to technology versus processes cause different reactions in employees?

Resistance to Technological Changes

As mentioned, fear of obsolescence is one of the primary concerns employees have in this regard, especially when we consider how quickly technology is developing these days.

In terms of implementing new software systems, resistance may be due to the learning curve involved and concerns about competence and productivity during the transition period. The fear of making mistakes or failing to adapt quickly – and the resulting fear of being reprimanded – can be significant barriers. In addition, technological changes can disrupt established workflows, which can be perceived as hassle and cause frustration. Further disruption due to technical difficulties can compound things further.

Resistance to Process Changes

Changes in processes often cause resistance among employees who are accustomed to the old ways of doing things, and this may be more pronounced in those that have worked in their roles for a long time.

Employees often develop a strong attachment to familiar processes that have proven successful in the past and if they don’t see the benefit in doing things differently, it stands to reason that they will resist. Process changes might also be perceived as adding more steps or complexity to their tasks (even if that’s not actually the case). Ultimately, the perceived loss of control and the challenge of breaking long-standing habits can be daunting.

Conclusion

Resistance to change is a natural and deeply rooted human response and, to overcome it, it’s essential to consider the psychology involved. Only then can truly effective change management strategies be implemented, which enable smoother transitions to new systems and processes.

Of course, there are endless psychological theories we could explore, but those discussed above provide a good basis for better understanding your workforce and their attitudes towards change. In the next article, we’ll be looking at how different generations handle change.

MORE INFORMATION ABOUT MANUS WFM

MANUS provides state-of-the-art workforce management software and payroll processing services. To learn more or request a demo, contact us today.

Understanding the psychology behind resistance to change is crucial for leading successful transformations. By addressing the fears and uncertainties that drive this resistance, you can guide your organization through smoother transitions. Stay tuned for our next article, where we’ll explore how different generations in the workplace respond to change, offering insights tailored to each group’s unique perspectives and needs. This knowledge will help you manage change more effectively across all levels of your team.

Boost Your ROI with WFM-Consultancy Services

WFM / 11 Aug 2024

Navigating the complexities of Workforce Management (WFM) is challenging, especially for growing and multinational companies. But don’t let inefficiencies hold you back. With MANUS Software Europe’s WFM Consultancy Services, you can unlock the full potential of your WFM system. We help you streamline processes, cut costs, and enhance productivity. Whether you’re an existing client or new to WFM, our tailored solutions will drive your success. Discover how in this article.

How Does WFM-Consultancy Help Yield Better Results?

Workforce Management is a complex area to navigate, especially for multinational companies that have to contend with the laws of many regions or ambitious companies that want to grow. And the ongoing trend of hybrid working brings new challenges.

Even the most advanced WFM tools can fall short if not wielded to their utmost capacity. There are often untapped optimization opportunities and process enhancements awaiting discovery.

At MANUS Software Europe, our mission is to ensure 100% control and 0% waste for our workforce management software customers. Our consultancy services commence with establishing robust processes and evolve into bespoke strategies designed to yield efficiency gains and diminish labor expenses.

You don’t have to be a customer of ours to benefit this service though – read on to learn more.

Tailored Services for Existing Customers and New Contacts

We offer two versions of our consultancy service: one for existing customers and other for businesses that are not using our workforce management system. Both will provide valuable insights into your WFM processes but they cater to distinct stages of your journey.

For Existing Customer

For our existing customers, we provide a continuous improvement service. Each month, a dedicated business consultant works closely with you to analyze your current processes and how you use our workforce management solutions. This helps identify areas for improvement, ensuring you get the most out of MANUS WFM and continually optimize your processes for better results.

Whether it’s resource allocation, employee scheduling, attendance tracking, time evaluation, payroll, compliance, reporting, real-time monitoring for numerous purposes, or anything else, we’ll make sure you’re implementing it in the optimal way.

An added benefit is that, as your business needs change, you will continue to refine your WFM strategy.

We can also help you discover more about your implementation of MANUS 5.

For New Contacts

For new contacts, our consultancy service assists you in selecting the most suitable workforce management solution for your organization. This is a paid service where we conduct a thorough scan of your existing procedures and systems in order to understand your unique requirements and identify the most appropriate solutions. If you decide to implement MANUS WFM, the fee for this initial service will be deducted from the overall project fee.

Our WFM Consultancy Process

How exactly do we ensure your workforce planning software is used in line with your business objectives? Let’s look at our process in more detail.

Assessment; As mentioned, we begin with a comprehensive assessment of your WFM processes and existing systems, gathering detailed information about your workflows and operational challenges. This thorough analysis forms the foundation for developing a customized strategy that addresses your needs.
Identification; From our assessment, we generate a detailed list of potential improvements, including key areas where efficiencies can be gained, costs can be reduced, and compliance can be enhanced.
Customized Solutions; Next, our team develops a tailored plan that aligns with your business objectives and budget, helping you drive optimal results in the long run.
Implementation; Our consultants work closely with your team to integrate the identified changes, ensuring a smooth transition with minimal disruption.
Training; We train key personnel within your organization to ensure they have the knowledge required to guide end users and maximize the benefits of the changes. We also assist with documenting the processes to ensure continuity and consistency.
Continuous Improvement; Our consultants are available to assist with any challenges or questions that may arise, helping you adapt to changing business needs. As such, we ensure that your WFM strategy remains effective and relevant, driving long-term results.

Why Choose our WFM Consultancy Service?

Cost Savings

Our consultancy services help you uncover inefficiencies and implement cost-effective solutions that deliver tangible financial benefits.

Profound Expertise

MANUS WFM is a comprehensive workforce management solution and you don’t need to navigate all of its functionality by yourself. Our team of experts brings years of industry experience to the table. Based on their comprehensive analyses, you’ll receive the most effective recommendations.

Tailored Solutions

Our recommendations are customized to develop the best strategies that suit your requirements – whether you’re looking to improve efficiency, reduce costs, enhance productivity, or all of the above.

Gain Competitive Edge

MANUS WFM is a state-of-the-art, cloud based solution with an advanced time evaluation engine, compliance engine, analytics, an employee app accessible from mobile devices, and many more features. By using it in the best way for your organization, you can leverage this technology to enhance productivity and efficiency, helping you stay ahead in your industry.

WFM Consultancy FAQ

Which Companies Can Benefit from WFM Consulting?

Any organization that relies on efficient labor management can benefit. Companies that need to optimize their processes, that have complex scheduling needs, or are experiencing rapid growth will find our services particularly beneficial.

Whatever your industry – from manufacturing to retail, from logistics to contact centers – our consultants can help you enhance your strategies.

Why Would I Need WFM Consultancy?

You might need WFM consultancy if you face challenges in managing your workforce efficiently. This could include issues like;

High turnover rates
Inefficient scheduling
Underutilization of resources
Compliance concerns, or
Difficulties in tracking employee performance

Our consultants help identify these pain points and provide solutions to overcome them, ensuring smoother operations and better workforce management on the whole.

Is WFM Consultancy Worth It?

Absolutely. WFM consultancy can lead to significant long-term savings and operational improvements. MANUS WFM has proven to deliver labor cost savings of up to 10% – and making sure you’re truly benefiting from it in the best way possible drives ROI.

How Will WFM Consultancy Help Me Keep My Workforce Motivated?

The optimal use of your enterprise workforce management software will have a knock-on effect for employees. Streamlining processes and ensuring employees are well-managed and scheduled effectively may help reduce uncertainty and stress, and improve job satisfaction. In turn, you may see improved workforce productivity.

Also, our training and support services equip HR staff with the knowledge of how to use MANUS WFM effectively, ensuring everyone gets the greatest benefits from it.

Conclusion

We want to help you realize the full potential of your business, from initial assessment to continuous improvement. With our expertise, customization, and ongoing support, you can drive long-term success in the core HR functions of WFM and payroll, which will lead to further labor cost savings.

Eager to Learn More About WFM-Consultancy Sevices?

MANUS & Speakap Join Forces

Retail / 05 Aug 2024

MANUS Software Europe and Speakap announced a new partnership today. Read more about it here:

Combined Knowledge for Effective Planning & Happy Employees

MANUS Software Europe, a leading provider of Workforce Management solutions, and Speakap, the premier platform for employee engagement and communication, are delighted to announce a strategic partnership that will set new standards in employee management and engagement in the retail industry. This collaboration was formalized on Friday, July 12th, at a joint meeting in the offices of Speakap.This partnership combines MANUS’s expertise in state-of-the-art scheduling and time & attendance management conforming to collective labor agreements with Speakap’s innovative approach to improving employee communication, productivity, and engagement. Both organizations have established strong reputations in the retail sector, providing solutions tailored to the complex challenges and needs of retailers worldwide

Shared Vision & Values

Both MANUS and Speakap are known for their deep understanding of the retail environment and their robust international client bases. This collaboration is built on a shared vision for enhancing workforce management and communication technologies, making them more intuitive and efficient.

Speakap and MANUS Partnership Announcement

Partnership Benefits

Patrick van der Mijl, CEO of Speakap, expressed his enthusiasm about the partnership, stating, “Joining forces with MANUS represents a significant step towards changing the way retailers engage with their teams. Workforce management is not just about scheduling and payroll, it is also about creating value and a more connected and productive frontline work environment.”

Danny Assen, Commercial Manager at MANUS, also commented on the collaboration, “This partnership with Speakap will allow us to provide even more comprehensive solutions to our clients. By integrating our technologies, we are setting the stage for enhanced operational efficiencies and improved employee satisfaction, which are critical for success in today’s dynamic retail market.”

Enhanced Solutions for Retailers

The integration of MANUS’s Workforce Management software with Speakap’s employee communication platform will allow retail staff to access schedules, request time off, and swap shifts directly from their mobile devices. This seamless interaction enhances the employee experience, boosts productivity, and supports compliance with real-time reporting and analytics.

Webinar 10 October

To kickstart this partnership both organizations will host an exclusive Webinar on October 10th at 13:00 CEST in which they will share insights on how to turn resistance to change into enthusiasm for new technology. More information on the speakers of this event and how to sign up can be found here.

About Speakap

Speakap is a leading employee communication app that enhances how companies communicate with their teams. Used by over 600 companies worldwide, Speakap’s mission is to improve the workplace by simplifying communication processes, ensuring employees are well-informed, trained, and connected, thus enabling them to perform at their best.

MORE ABOUT SPEAKAP

MANUS 5 is here!

WFM / 22 May 2024

The latest iteration of our workforce management system, MANUS 5, brings a more intuitive and efficient approach to strategic workforce planning.

This new release, now fully web-based, aligns with the flexibility and accessibility demanded by today’s work environments, with enhanced usability across a broad spectrum of devices, including mobiles, desktops, and tablets. So, what exactly can users look forward to? Read on to find out all about the changes in MANUS 5 and how it streamlines your workforce planning process more than ever before.

The same powerful WFM-software, simplified use

Because our enterprise workforce management software is so advanced and comprehensive with its calculations, it was perceived as complex by some of our users. In version 5.0, we’ve simplified the user experience while retaining its full functionality and the specialty calculations it’s known for. Essentially, users get the full power of the software but in a cleaner, more focused manner. Someone less tech savvy will derive just as much benefit from our advanced solution as someone that wants to see all the low-level details. Users can really make it their own. So, let’s explore the changes in detail.

Improved User Inerface

The most striking change in 5.0 is its completely overhauled user interface. The changes are based on feedback from customers that were using the previous web version; from there, we designed an experience that’s better for all users, whatever their role within your organization.

The ultimate in reponsiveness

Built on a new framework, the UI is not only fully web-based now, but it’s also designed to be more intuitive and adaptable. It’s more easily deployable for all users and caters to the varied devices used in today’s workplace better than ever before.

So, whether you’re a manager conducting checks on the shop floor with a tablet or an employee clocking in from a remote location, the software is optimized for use on the go.

MANUS WFM5 on a tablet — Easily plan on a tablet

Cleaner Visuals and Navigation

In terms of visuals, the new UI is clean, less cluttered, and better structured for web use, ensuring all functionalities are easily accessible. These changes enhance daily operations by making the software more adaptable to individual needs.

Customizable Role-specific Dashboards

A significant change in this version is the introduction of a customizable dashboard – a key element in making the deployment more suitable for different roles.

Whether you’re a manager or a regional manager, for example, the dashboard presents a role-specific view, providing insights and information that are most relevant to your daily tasks.

This streamlines the workflow by centralizing critical information, eliminating the need to switch between screens and thus, making planning more efficient. (Previously, users had to switch between screens for daily, weekly and multiple week schedules but now, they’re all on one screen.)

Custom Filtering

Essentially, we wanted to create a screen that fits all needs. That’s why we’ve also given users custom filtering options. If a user is more numerically/financially inclined, their dashboard can reflect that. Likewise, if they’re more graphically oriented, that’s also an option.

Of course, there are still many other screens you can access when needed. The key is that we’ve created one screen that can serve the majority of every user’s needs without them having to navigate between different ones.

Manage-by-Exeption

‘Manage by exception’ is a unique selling point of our software, focusing users’ attention only on the areas that require it. By highlighting overlaps or compliance issues, for example, the system guides users through their workflow, ensuring nothing is overlooked. A user forgot to publish their schedule? No problem – the system will show them what items they need to look at.

Backend: Enhanced Performance

Version 5.0 isn’t just nicer to use – the backend has undergone a comprehensive overhaul, resulting in faster and more efficient performance.

Hosted on Azure, and as a Microsoft Gold Partner, we ensure our system always offers the highest standards of reliability and security that our clients can trust.

Developments to “Manage by Exception”

We’ve developed on this USP in 5.0. This version introduces new warning systems based on legislation, such as working time directives, further enhancing compliance without overwhelming the user with unnecessary details.

Blockages

We’ve added new warnings about blockages. While we don’t intend to make decisions on customers’ behalf, it’s now possible for actions to be blocked in cases where it’s absolutely clear that something shouldn’t be done – when there is no question about it.

If desired, blockages can be established based on best practices. Working time directives can be implemented more strictly or more freely, depending on the organization’s needs.

Time and Attendance and Labour Forecasting

Version 5.0 includes new workforce planning tools – we’ve expanded its time and attendance functionality to include advanced scheduling and shift management options.

With shifts, you have more freedom in how you manage your workforce – for example, you can assign specific tasks to shifts.

Labor forecasting is another factor that optimizes workforce planning with mathematical precision, based on factors such as customer traffic.

A More comprehensive API

We’ve enhanced our API, making it more comprehensive. Our solution is compatible with Microsoft Power BI and other BI tooling, enabling users to access analytics solutions that are aligned with their specific business needs.

We feel this to be much more valuable than including our own analytics module, as there is great variation in each customer’s requirements when it comes to insights. Instead, we’ve developed on what we do best while broadening its integration capabilities – not just for analytics but HR platforms and other tools within your ecosystem.

In essence, we now provide greater flexibility in terms of data exchange, while ensuring compliance with GDPR and other regulatory standards.

Same Partnership and Support

As you know, our approach extends beyond the software itself – and this will not change with version 5.0. We view our relationship with clients as a partnership, offering not just a tool but our expertise in workforce management.

Our consultants work closely with clients to tailor the system to their specific needs, ensuring they derive maximum value from their investment – and this will continue with version 5.0. Our consultants always get to the bottom of how each customer can get the most out of the software based on their unique WFM processes or industry requirements, whether they’re in logistics, retail, call centers, or leisure and hospitality, or other markets.

Eager to know more about MANUS 5?

As a trusted partner, we do everything we can to match our WFM software with your requirements. Contact us today to learn more about switching to MANUS 5.

In summary, MANUS 5 is a significant leap forward in terms of usability, functionality, and efficiency. It’s now fully web-based with an intuitive UI and customizable dashboards, better catering to the needs of different roles.

Its enhanced backend performance helps in meeting the diverse needs of today’s workforce within the unique context of each industry and organization. We continue to manage by exception and we’ve added new options in that regard. Our API is also more comprehensive now, giving you more flexible data exchange options.

Why WFM is a must for logistics service providers?

Logistics / 28 Mar 2024

With the rapid pace of logistics operations, managing a diverse workforce efficiently is challenging. With enterprise workforce management software, this task becomes much easier. Learn how WFM can help overcome the multiple challenges of logistic service providers.

WFM- Software can help in many ways

With the rapid pace of logistics operations, managing a diverse workforce efficiently is a challenge. Thanks to enterprise workforce management software, this laborious task is much easier. But what does it offer logistics companies specifically? What unique needs do they have and how does WFM software meet those needs?

Whether handling their own logistics operations or providing such services for external customers, WFM software helps organizations navigate the industry’s complexities. It offers so much more than attendance tracking, absence management and task management – and on top of that it helps reduce labor costs by up to 10%. Read on to find out how.

Logistic challenges and their solutions

Labor cost control

Rising labor costs make the need to optimize expenditure in this area more pressing than ever. A key driver behind managing these costs is that it plays a vital role in increasing profitability for many organizations.

Shortage of staff

Then there’s the shortage of heavy truck and lorry drivers. This is an issue in 18 European countries, of which 73% rated the shortage as severe.

The sector is facing difficulties in attracting and retaining workers, with many drivers approaching retirement or quitting in the pursuit of better compensation. In order to solve the problem – as well as attract younger workers – driver salaries have been increasing across Europe. The need to optimize labor costs has therefore increased in priority.

Hither operational costs

With increased energy costs around the world, operational costs for warehouses have been rising. Labor costs regarding warehouse workers are also seeing sharp increases, and worker shortages are a problem here as well.

How can the right WFM-software help to optimize labor costs?

WFM-software is proven to reduce labor costs by up to 10%. The solution offers reporting dashboards which provide detailed insights into labor costs and employee productivity metrics, helping identify areas of inefficiency, which enables targeted interventions to reduce unnecessary overtime and premium pay.

This is especially critical for companies handling logistics for external clients, as insights can be derived based on specific activities or customers. This is invaluable for assessing profitability and informing contract negotiations.

Juggling between diverse roles and contract types

The logistics sector is characterized by its diverse workforce, encompassing truck drivers, warehouse staff, and so on. There are also differences in contracts, shifts, and pay structures for each role.

With each role and type of contract having its own intricate set of rules and labor laws, there are many combinations of rule sets to manage. Another factor that complicates things is regional regulatory differences.

There are many other complex arrangements. For example, consider a small warehouse connected to a store where workers pick orders, which are delivered by van. In this case, the workers’ CLAs may come under the store’s rules and not the same rules as for staff working in larger warehouses.

What’s more, logistics companies often rely on temporary or agency staff, and they come with their own unique needs.

How can WFM-software help to manage complexity?

A workforce management system like MANUS WFM, with its advanced time evaluation engine, automatically handles all of this complexity. It accurately tracks worked hours, overtime, and premiums, and ensures compliance with all CLAs, no matter what the employee’s role or which country they work in.

For truck drivers, the system registers the time spent driving, and that data can be interfaced as worked hours to the WFM system.

WFM software also simplifies the onboarding, scheduling, and payment processes for temporary and agency workers, integrating with external HR systems for streamlined workforce management.

Organizational structure transparency

For logistics firms serving multiple clients, MANUS FM can delineate organizational structures within the platform, tracking and reporting hours by client or project, thereby enhancing transparency and accountability.

Predicting staffing needs

Staffing needs vary based on seasonal fluctuations, manufacturing schedules, and changing sales volumes. The quantity and type of goods that need picking will affect which staff need to be scheduled; then there’s the quantity of goods affecting the number of warehouse staff required. Delivery schedules also need consideration.

How WFM-solutions can help to predict your staffing need

MANUS WFM provides insights into future demand. This enables the precise calculation of required labor hours, facilitating accurate shift planning and scheduling. It operates on a highly granular level, thanks to its activity-based costing features – in other words, it can calculate how many hours are needed for collecting, packing and so on.

For example, it will consider how many items are needed per type of goods per hour, and how much each employee can do. Based on that information, it calculates the number of hours required to complete the given tasks, and therefore, the number of shifts to assign. Employee schedules can then be created.

Competence based scheduling

Logistics operations often require specific certifications or skills. Many roles require operating forklifts or other machinery to move and organize goods within a warehouse, while roles involving the transportation of goods may require a Commercial Driving License. There may also be technology-specific certifications relating to the systems in use, such as WMS or transport management systems.

How WFM-solutions can help with competence based scheduling

WFM systems can track these qualifications, ensuring that only appropriately trained staff are scheduled for certain tasks, thus maintaining operational standards and compliance. MANUS WFM ensures the right person is scheduled in the right place at the right time – and at the right cost – and this is another example of that principle in-action

Just-in-time deliveries

Optimizing delivery schedules is a must for any company that needs to make their resources go further (especially given the increase in fuel costs in recent years – combined with driver shortages). Other benefits include reduced vehicle wear and tear (and thus, maintenance costs) and the reduced need for overtime.

How can WFM-solutions help with Just-in-time deliveries?

WFM software collects comprehensive data on the time spent on specific routes. This helps to optimise schedules and reducing delivery times and fuel costs – bringing the added benefit of greater sustainability. (While MANUS WFM doesn’t analyze the data within the platform, it easily integrates with external analytics platforms.)

Taking this step ensures maximum utilization of a company’s vehicles and workforce, reducing idle times and increasing the number of deliveries per day. This agility also makes it easier to adapt to changes in volume, scaling up or down as needed without sacrificing efficiency or service quality.

What else is possible with the right WFM-software?

In this article we’ve looked at some challenges the logistics industry is facing and how the proper WFM solution can help solving them. But what else can workforce management offer logistics service providers?

Integrating with other systems

The best workforce management software integrates with many other external systems, for a streamlined human resources ecosystem. Here are some of the most crucial integrations MANUS WFM offers thourgh API:

WFM and WMS integrations

Integrating WFM with warehouse management systems allows for real-time visibility into both inventory and workforce data. As such, managers can align workforce schedules with current needs and priorities.

Again, this integration helps with activity-based costing, and it also makes it easier for employees to manage their time; by importing a line of items to be processed and linking it to the schedule, they can see when most of the work should be done.

Linking workforce performance data with specific warehouse activities gives companies maximum insight into productivity at an individual, team, or department level. This can highlight areas of high performance or identify opportunities for improvement, allowing for targeted training or process adjustments.

Integrating WMS and WFM systems can also streamline various warehouse operations, reducing the time and effort needed for coordination between different teams or departments. This can lead to faster processing times, reduced errors, and improved order fulfilment rates.

On the whole, integrated systems provide the agility needed to respond to changes in demand or operational conditions, allowing companies to scale up or down quickly. This is particularly important in the context of logistics, where demand can be highly variable.

Payroll Integrations

After MANUS WFM’s powerful time evaluation engine has performed its calculations, all the data needed for payroll processing is passed to your HR or payroll system. Automating this step is essential for ensuring the accurate and timely pay of all employees, no matter how complex the situation.

As for agency workers, agencies can download or import files with the payroll data they need in order to pay workers at their end.

Do you want to learn how MANUS WFM can help with these challenges?

Workforce management software offers transformative benefits for logistics operations, addressing a range of challenges from labor cost control to compliance. It easily manages the diverse contract types and CLAs that the logistics workforce bring, streamlines operations, ensures accurate and timely pay, and helps organizations to adapt to changes in demand.

To discover how MANUS WFM can manage your WFM needs while reducing labor costs by up to 10%, contact us today to request a demo.

Workforce management software offers transformative benefits for logistics operations, addressing a range of challenges from labor cost control to compliance. In this article, we reviewed the biggest WFM challenges for logistics and touched on how WFM software can help.

Softbrick B.V. and Manus Software B.V. join forces as MANUS

WFM / 03 Dec 2023

Softbrick BV and Manus join forces as MANUS

Two leading players in Workforce Management software, Softbrick B.V. and Manus Software Europe B.V. – both part of the Canadian Valsoft Corporation Group – will join forces on December 4th to jointly move forward as MANUS. This merger marks an exciting development in the world of Workforce Management (WFM) software, planning and time evaluation.

New horizons, new branding

Since Valsoft Corporation’s acquisition of Softbrick B.V. in 2020 and Manus Software B.V. in 2021, the two companies have already been collaborating intensively in the background.

“The decision to continue as one entity under the name MANUS originates, on the one hand, from the ambition to combine our joint knowledge and strength and, on the other, to offer transparency to our customers and relations.” Explains Danny Assen, Commercial Manager at MANUS.

“The merger of both brands allows us to develop better and broader solutions for our valued customers. With this change, we will at once become the most experienced Workforce Management (WFM) partner within Europe. Our combined expertise will help us to better respond to customer needs and to position ourselves more strongly within the WFM market.”

What does this mean for customers?

This merger brings significant benefits to the customers of both companies. “Firstly, we remain committed to the personal approach and strong customer relationships that characterized Softbrick B.V. At the same time, we bring in Manus Software B.V.’s business expertise to strengthen our services and drive international growth”, adds Jan-Willem van Riet CEO at MANUS.

In recent weeks, customers have already been informed of the upcoming changes, which will be further rolled out in the coming months.

New beginnings, a new look

This step is being demonstrated today with the presentation of a new logo and website. The logo combines the letter M of MANUS and the W of Workforce management – with collaborative individuals. The MANUS website provides detailed information about the new identity, services and capabilities of the company.

About MANUS

MANUS, formed by the merger of Softbrick B.V. and Manus Software Europe B.V., is a leading player in Workforce Management software. With innovative solutions for Workforce Planning, Time Evaluation, Time Registration, Payroll and Consultancy, they strive for 100% control and 0% waste. MANUS helps ambitious companies in mastering complex Regulations, Operational and HR processes. In the past 30 years, renowned Call centers, and companies in Retail, Logistics, Production and Leisure have optimized their processes and achieved their goals thanks to the use of MANUS.

Why is Time Evaluation Vital in Manufacturing?

Industry / 26 Jul 2023

In the context of production, time evaluation means looking at the relationship between employee performance and production processes. Reviewing this data side by side can highlight bottlenecks that are slowing down processes, so they can be addressed and waste can be reduced.

Time evaluation can also help to improve delivery schedules through gathering data on shipping processes. Through identifying inefficiencies in this area, companies can reduce lead times and improve on-time delivery rates, thus improving customer satisfaction and loyalty.

Let’s explore in more detail how time evaluation helps in achieving the above – and more.

Optimizing the Production Process and Enhancing Employee Productivity

When the time employees spend working does not lead to the expected output, it’s time to troubleshoot. Time evaluation data highlights such discrepancies and from there, managers can look for the root cause.

If productivity is unexpectedly low in certain areas or among certain teams, this may indicate a need for further training, or perhaps an issue with the managers overseeing the team in-question. Likewise, employees that are meeting and exceeding productivity targets can be rewarded, further incentivizing high performance.

Some workforce management systems also monitor how time is spent on specific tasks within the production process, helping to pinpoint exactly where the inefficiencies arise. Manufacturers may then develop ways to optimize workflows and eliminate unnecessary tasks.

Staying Flexible When Sudden Changes Occur

In manufacturing, unexpected changes are inevitable, such as rush orders, machine breakdowns, or supply chain disruptions. Time evaluation enables companies to stay agile and respond effectively to these sudden changes, helping inform resource allocation, so that the right staff are available to meet changes in demand.

Generating Efficient Schedules

Efficient scheduling is crucial for maximizing manufacturing productivity. Software can automate the process of creating schedules by considering factors such as production targets, available resources, and employee skills.

Keeping production at its maximum is not possible when workers are only trained on specific equipment, for example, so having an intelligent system to match tasks with the right personnel ensures optimal resource utilization and minimizes idle time. In other words, it schedules the right worker to be in the right place at the right time.

Fair Scheduling for Shift Workers
Given the prevalence of shift work in manufacturing, it’s important to have the tools to ensure that shifts are allocated or rotated fairly. Workforce management software provides the oversight to make this possible, ensuring that nobody is left with the short end of the stick repeatedly.

The consequence of poorly-managed shifts include stress, sleep problems and other negative health outcomes, as well as lower job satisfaction. The link between wellbeing and productivity is confirmed by various studies, showing that not only do greater levels of wellbeing lead to enhanced productivity but also to lower absenteeism and other positive outcomes.

WFM software makes it extremely easy to create fair schedules for a large, multinational workforce while staying in compliance with labor laws.

How Will Robotics Affect Shift Allocation?
The use of industrial robotics in Europe is forecast to have an annual growth rate of 6.49% between now and 2028. The deployment of robotic assistants on the production line and elsewhere within manufacturing and maintenance brings about new requirements for scheduling.

Instead of re-adjusting resource allocation approaches manually, WFM software with its robust time evaluation capabilities provides the insights required to optimally deploy staff alongside their robotic counterparts. This ensures that not too many and not too few human workers are stationed where they need to be for maximum productivity.

Other Benefits

Complying with Diverse Labor Regulations
Multinational organizations often face the challenge of complying with diverse labor regulations. Time evaluation helps mitigate compliance risks by accurately processing data regarding employee work hours, breaks, and overtime – no matter how many jurisdictions the organization operates in.

Reducing Labor Costs
Labor costs are a significant expense. Time evaluation provides comprehensive visibility into labor utilization; analyzing data on labor productivity, overtime allocation, and absenteeism helps in identifying opportunities for efficiency improvements and cost savings – without compromising production output.

Identifying Training and Development Needs
Time evaluation data has an important role in talent management. As mentioned, if low productivity is detected, training needs may be uncovered and the organization can then implement targeted development programs. In addition, by identifying high-performing talent, companies have a shortcut when putting individuals forward for internal promotions.

Training and development is essential for motivating Gen Z employees, so keeping on top of their needs is a must.

How Workforce Management Systems Enable Time Evaluation

Without the right workforce management software, there is no way to get the benefits that time evaluation brings to the table. Below are several ways in which the software makes it possible – in addition to having an advanced, time evaluation engine.

Data Collection and Management

Accurate data collection is the foundation of time evaluation. Manual and outdated time and attendance tracking methods such as paper-based timesheets often contain errors, which means that even if a company aggregated this data manually for analysis, the results may be skewed.

A workforce management software solution automatically processes all time and attendance data based on schedules and clock-in/out times. The time evaluation engine can then get to work.

Automation

Workforce management software streamlines and automates a range of everyday tasks relating to time evaluation and beyond. It seamlessly handles:

Time and attendance tracking
Employee scheduling and leave management – employees can request time off digitally, while managers can easily review and approve requests.
Automatically provides data for payroll processing, ensuring accurate and timely payment calculations while integrating with relevant labor laws and collective agreements.

Integrations

A flexible workforce management solution integrates with various other systems to streamline workflows even more, ensuring that you get the most value out of your time evaluation data.

Data Analytics Tools
Feeding your workforce data into a powerful analytics platform allows for the most comprehensive insights – not just when it comes to productivity, but also turnover, training and development, compensation and benefits, diversity, employee engagement, and much more.

ERP Tools
Integrating WFM and ERP tools enables seamless data flow and synchronization between the two systems, eliminating the need for manual data entry, therefore saving time and reducing errors. This integration provides a holistic view of workforce-related data and operational information, allowing for better decision-making and resource allocation.

By combining WFM and ERP systems that have production planning tools, businesses can align workforce capacity with production demands in real-time. This integration also streamlines payroll processes and enables collaboration between departments, such as HR, finance, and operations.

Supply Chain Management Software
Integrating WFM software with Supply Chain Management (SCM) software allows for efficient coordination between workforce planning and supply chain operations. As with the above examples, it assists with forecasting labor requirements and allocation resources based on demand.

The integration also enhances collaboration and communication between the departments involved in supply chain operations. Teams can work then quickly respond to changes, such as unexpected orders, capacity constraints, or supply disruptions.

The Best Workforce Management Software for Time Evaluation

Using an enterprise workforce management system allows multinational organizations to derive all the key benefits we’ve discussed in this article. MANUS WFM is built upon an advanced time evaluation engine that provides the following:

Accurate and timely pay slips guaranteed for all legislative requirements, Collective Labour Agreements, or local business regulations.
Complete adherence and for multinational corporations; certified ISAE3402 and GDPR compliant.
Centralized management of multinational and multibranch operations within a single database, accommodating diverse legislations and regulations across all parts of your organization.
Customizable parameters within regulatory frameworks, allowing flexibility based on employee type, role, location, department, or even individual employees, if necessary.
Constant updates aligning with regulatory changes to ensure precise calculations at all times.
The re-calculation analyzer provides a detailed trail, explaining the reasoning behind the results obtained.
The employee self-service app lets staff view their schedules and request time off. This reduces the number of queries that HR have to handle and makes it easier and quicker for employees to have their leave approved, which naturally improves employee sentiment towards the company.

Summary

Time evaluation is a powerful tool that manufacturing companies need to include in their arsenal in terms of increasing output. It all starts with monitoring productivity – and from there, management can explore the causes of low productivity and uncover areas for improvement.

Time evaluation is an integral part of the best workforce management systems. WFM software gathers time and attendance data which is automatically passed to the time evaluation engine for further processing. From there, reports are generated so that management can gain insights and, for the most comprehensive insights, the system will pass data to an external analytics system.

Aside from the productivity benefits, time evaluation helps in generating the most optimum schedules. It also handles compliance and absence management, and reduces labor costs. All in all, it provides the ultimate agility in workforce management.

With the ever-growing competitive pressures in the manufacturing sector, adopting time evaluation software becomes a strategic advantage, enabling companies to thrive in a fast-paced and demanding industry.

MANUS is the most experienced provider of workforce management solutions serving multinational organizations world-wide. With its flexible integrations, our solutions ensure the most streamlined HR processes. To book a demo, contact us today.

Why Retailers Need to Focus on Contract Mix for Optimal Results

Retail / 12 Jul 2023

To succeed in retail today, it’s not just about having the right product at the right price. The best service level for customers is a key differentiator in this competitive industry and, as such, organizations need to focus on the contract mix of their staff in order to achieve optimal results.

Including a mix of permanent, temporary and seasonal contracts improves employee productivity, efficiency, flexibility, and ensures optimal coverage for meeting customer needs.

In this article, we’ll explore how refining the contract mix can help retailers adapt to changing business needs so that the right worker is always in the right place at the right time.

The Benefits of Diversifying the Contract Mix

Maximizing Staffing Flexibility

One of the primary benefits of a well-planned contract mix is the ability to achieve optimal staffing flexibility. Retailers face fluctuating customer demands, which can vary based on factors such as time of day, day of the week, and seasonality. Employing a mix of full-time, part-time, and seasonal workers allows retailers to adapt their workforce to match these changing demands.

Full-time employees provide stability, consistency, and specialized expertise, and can take on more extensive responsibilities, while part-time and on call staff offer flexibility and cost-effectiveness during peak periods.

This combination ensures that the right number of staff members are available to handle customer needs, reducing wait times, enhancing service quality, and ultimately driving customer satisfaction and increase sales.

Cost Efficiency and Resource Allocation

This is a critical aspect of retail operations and, along with workforce planning software, the contract mix approach helps retailers to control their labour expenses.

Full-time employees, while typically more costly, offer a dedicated workforce that can handle core responsibilities and provide in-depth product knowledge. On the other hand, since part-time and seasonal workers allow organisations to adjust staffing levels according to demand fluctuations, having these workers on the payroll prevents overstaffing and unnecessary wage expenses during slower periods.

There’s also the benefit of having extra employees available to cover during maternity leave, sick leave, holidays, and so on.

Ultimately, a mix of contracts therefore allows labour costs to be optimized without compromising service quality.

Enhancing the Customer Experience

A mix of contracts ensures that organizations have the right people available to deliver top quality customer experiences.

Full-time employees, with their deeper understanding of products and processes, can provide personalized assistance and build long-term customer relationships, while part-time and seasonal workers help bridge the gap, taking on the extra workload during peak times and ensuring a quick response. Collectively, the two types of employees can ensure that customer needs are always met.

Talent Pool for Future Hiring

Seasonal employment allows retailers to identify potential talent for future full or part-time positions. Offering seasonal workers with permanent positions also saves on recruitment and training costs, while the company benefits from employees that are already familiar with the company’s operations and culture.

Giving part-time and seasonal workers the opportunity to gain skills, explore career options, and potentially transition into full-time roles will also boost engagement and create a positive reputation for the company as an employer.

Pros and Cons of Employing Part-Time Workers

Pros

As well as the benefits discussed above, here are several more benefits.

Diverse Skillsets
Part-time workers can bring diverse skills and expertise to the team, as they often have experience from various industries or occupations. Employing these workers can also help businesses tap into niche or specialized skills that may not be readily available within the full-time workforce, bringing unique expertise to specific projects.

Cross-Training
Due to the flexible nature of part-time work, it can be convenient to cross train part-time employees and be prepared to move staff between departments during busy seasons. Full-time staff, with their daily responsibilities, may not have the time to take on additional training when it’s needed. And again, part-timers with experience in various types of work may easily adapt to new types of tasks.

Diversity
By offering part-time positions, organizations can attract a wide range of individuals, including students, parents, retirees, and those seeking supplemental income. This encourages a diverse workforce full of new perspectives, ultimately enriching the organizational culture.

Cons

There are some challenges to overcome with the contract mix, but nothing that cannot be easily resolved. These challenges include:

Increased Workload for Managers
With the additional training and supervision on hiring seasonal workers, the workload for managers increases, but without the long-term benefits that come with part-timers. Integrating part-time workers into existing teams and workflows may also require additional effort.

Scheduling Challenges
Managing part-time workers can be more challenging due to their varying schedules and availability, requiring additional coordination and communication efforts. In addition, part-time workers may face challenges in balancing multiple job commitments or personal obligations, potentially leading to increased absenteeism or scheduling conflicts.

Team Building Challenges
Since part time workers aren’t present as much as full-timers, the opportunities for building rapport among teams are reduced.

Less Commitment and Motivation
Part-time workers may have less commitment compared to full-time employees and may be more inclined to prioritize their other commitments or seek better opportunities elsewhere. In addition, the reduced job security and fewer benefits compared to full-time employees may lead to lower motivation and job satisfaction.

More Complex WFM Processes
Employing part-time workers may require additional administrative tasks and compliance with labour laws and regulations related to part-time employment, making workforce management processes more complicated.

Overcoming the Cons

To overcome motivation challenges, implement recognition and reward programs that acknowledge the contributions of part-time workers, helping to build a sense of belonging and motivation.

Make sure that tangible rewards are included, and not just titles such as “employee of the month”. After all, if they are not emotionally invested in the company, such titles may not make a difference. However, genuine rewards will help those with the least motivation to be productive.

In addition, provide clear career development opportunities for part-time workers – after all, while many part-timers are not looking for a long-term career in the industry they work in, some of them will, and those are the ones you want to retain most of all.

Another way to provide temporary cover while ensuring maximum motivation is to hire paid interns. They can provide hands-on assistance with everyday tasks as well as learn new skills and work within different departments. As they are there to learn and develop, they may be more invested than part-time staff and could progress into full-time positions later.

As for team building, increase the opportunities that full and part-time staff have to interact with each other, though company events, social activities and meetings.

Finally, scheduling challenges are overthrown thanks to workforce management software. These tools facilitate better coordination of part-time workers’ varying schedules and help provide clear communication channels to address scheduling conflicts.

How a Workforce Management System Improves Contract Mix Optimization

Enterprise workforce management software plays a vital role in contract mix optimization, helping organizations to manage their schedules, labour costs, and much more. It’s the key to having the right employee in the right place at the right time, at the right cost.

Workforce software helps in the following ways:

Provides real-time visibility into employee availability, making it easier to assess the contract mix and identify opportunities to balance full-time, part-time, and seasonal contracts.
Automates scheduling processes, for the efficient allocation of shifts based on demand and employee availability.
Enables accurate demand forecasting so that managers can determine the appropriate number and type of contracts needed.
Workforce management solutions can integrate with analytics software, enabling managers to deeply analyse workforce trends and make data-driven decisions.
Streamlines communication between managers and employees, ensuring clarity and reducing scheduling conflicts.
With automated alerts and notifications, the software ensures the timely management of schedule changes.
The best workforce management software automates compliance with labour laws.

In addition, the Employee Self-Service functionality provided by the reduces the admin involved with scheduling. Employees can manage their own data, submit leave requests, view upcoming schedules, and keep their availability up to date.

Conclusion

Having the right employee in the right place at the right time is crucial to providing the best service in retail, and the strategic management of the contract mix makes this easier.

Balancing full-time, part-time, and seasonal contracts allows retailers to adapt to demand fluctuations and provide exceptional customer service. It also reduces the risk of burnout for full-time staff and provides a pool of talent for full-time openings.

While the scheduling and admin is more complex with a mix of contracts on the payroll, workforce planning software make it easy. With features for handling time and attendance tracking, benefits administration, absence management and more, workforce management tools streamline HR processes and reduce labor costs.

To discover whether MANUS WFM is the right workforce management software for your organization, today to book a demo.

How Workforce Management Software Saves 7-10% on Labor Costs

WFM / 28 Jun 2023

Labor costs are one of the biggest expenses for any business and if not managed properly, they can quickly spiral out of control.

One of the most effective ways to save costs in this area is by leveraging Workforce Management software; with its ability to automate various processes, it can lead to significant savings. In fact, our solution is proven to reduce labor costs by up to 10% (depending on the industry).

In this article, we’ll explore how workforce management systems bring labor cost savings through demand forecasting, optimized scheduling, productivity improvements and more.

How the Best Workforce Management Software Reduces Labor Costs

Optimal Employee Scheduling

Many variables need consideration when scheduling shifts, including availability, skillsets and compliance requirements.

Our total workforce management system, MANUS WFM, offers a wide variety of support tools that assist in deciding which employee should work when and where.

Just a few factors it considers are labor laws, employee preferences, and skill requirements to generate schedules that minimize overtime, eliminate understaffing, and maintain adequate coverage. As a result, a better balance between staffing levels and workload is achieved.

In organizations where demand fluctuates unpredictably, having an effective way to manage schedules is important due to the rapid response required. For example, a garden center will experience increased visitors when the weather is nice, so on sunny days, it’s necessary to have a sufficient number of skilled staff scheduled. WFM software provides the agility you need to be able to consistently meet service levels.

To consistently meet service levels, agility is required – and that’s exactly what WFM software provides.

Reducing Overtime Expenses

When organizations are short on staff, the existing employees have to work overtime; naturally, when the overtime rate is higher than their standard rate, this becomes problematic.

In addition, employee productivity is lower when they are overworked, making those extra hours lead to lower output and higher absenteeism due to illness. However, when the workload is optimally distributed, this is no longer an issue.

Using workforce software that has a powerful engine that can help you schedule shifts optimally eliminates these problems. In addition, our Employee Self Service functionality lets employees easily swap shifts or time-off requests. This prevents the need for costly last-minute replacements.

Another way in which the software optimizes scheduling is through demand forecasting.

Accurate Demand Forecasting

One of the key features of workforce management software is its ability to accurately forecast demand based on historical data and variables like seasonality, sales data, and other relevant factors that provide insight into staffing requirements.

With this information, organizations can ensure the right number of staff are present during peak hours and avoid overstaffing during slower periods.

Being able to forecast ahead of time brings a number of additional benefits – namely, benefits to the workforce. Having more stability around shift planning helps reduce employee stress and improves their work-life balance. On the other hand, an unpredictable schedule can wreak havoc on their personal and family lives (especially for parents) and can cause financial struggles.

A study on scheduling instability revealed that 37% of participants (US retail and food service workers) had variable schedules, their income fluctuating by around 30% on a weekly basis.

Shift cancellations also proved common – and of the workers that had shifts cancelled, 65% reported experiencing psychological distress. In addition, 25% of participants that experienced a large degree of shift variation reported sleep problems.

While labor laws in the Netherlands protect against last-minute cancellations, it’s clear that unpredictability around working hours causes significant problems for wellbeing.

The figures above are not promising for any company that wants to retain its workers – yet doing so is vital to motivate Gen Z and reduce the costs associated with churn. Thankfully, workforce planning software takes the chaos out of scheduling by staying one step ahead.

Improved Absence and Leave Management

Managing absences and leave can be a complex and time-consuming task. Workforce management solutions simplify this process through automation, allowing employees to submit requests, managers to review and approve them, and schedules to be updated accordingly.

Automating this process leads to fewer errors and reduced administrative burden, and ensures optimal staffing levels without over-relying on costly temporary replacements.

Real-Time Monitoring

WFM software provides real-time monitoring capabilities, allowing managers to track employee attendance, punctuality, and adherence to schedules. This helps identify and address potential attendance issues promptly, minimizing costs associated with absenteeism, and reducing productivity losses. It also helps to create a culture of accountability.

Analytics and Reporting

Feeding workforce data into an analytics platform allows for valuable insights into workforce trends, performance metrics, and cost analysis. Organizations can then make data-driven decisions with a view to implementing improvement strategies to further optimize labor costs.

Some examples of the types of patterns the data may reveal include excessive overtime, areas with low productivity, or underutilized workforce.

Our workforce planning software come with an API for integrating with all of the major reporting and Business Intelligence tools on the market.

How to Maximize Labor Cost Savings with Workforce Planning Software

Below are a few tips to help you get the most from your workforce management software solution.

Invest in the Right Workforce Management Software

Choose a robust, comprehensive solution that aligns with all your requirements and offers all the features mentioned above. To recap, it should provide accurate demand forecasting, employee scheduling, absence management, real-time monitoring, and Employee Self Service features.

It should also have a powerful compliance engine and be able to integrate with external systems such as payroll software, analytics platforms, clocking in systems and more.

Continuously Train and Educate Staff

Provide comprehensive training on how to use the workforce management tools to their full capacity, ensuring that staff understand all of their intricacies. This will also promote consistent and accurate data input and reduce errors.

Regularly Review and Update Processes

Keep evaluating and refining your workforce management processes in collaboration with the software. Identify areas for improvement such as automating manual tasks, eliminating redundant processes, and optimizing workflows to enhance overall efficiency.

Other Administrative Costs

Admin costs can be reduced in a broad range of areas. WFM software that has a powerful compliance engine automates a great deal of the work needed to ensure compliance, reducing the associated costs. Using powerful software that automates many processes also reduces the number of HR staff required.

In addition, manual and paper-based time and attendance tracking systems can be fraught with errors, with managers wasting time troubleshooting.

Conclusion

Labor cost optimization plays a crucial role in ensuring profitability. WFM software serves as a powerful tool in reducing labor costs by accurately forecasting demand, optimizing employee schedules, managing absences, reducing time theft, and much more. It also has the potential to reduce the staggering costs caused by employee turnover.

Manus Software Europe provide world-class enterprise workforce management software for large, multinational organizations throughout Europe and beyond. To book a demo or learn more about our professional services, contact us today.

Time Evaluation in Hospitality and Leisure: The Key to Greater Efficiency and Lower Labor Costs.

Leisure / 13 Jun 2023

Time evaluation plays a vital role in workforce management within the hospitality and leisure industries. With operations that rely heavily on staff availability, scheduling, and efficient use of time, accurately assessing and managing the hours worked by employees is vital.

In this article, we delve into the significance of time evaluation in these industries, including how it ensures compliance with labour regulations and enhances overall operational efficiency.

What is Time Evaluation in Workforce Management Systems?

In workforce management solutions, “time evaluation” and “time and attendance” are two distinct modules that serve different purposes but work together closely.

Time and attendance focuses on attendance tracking, capturing and recording the actual hours worked by employees. It typically involves features such as time clock integration, timesheet submission, and absence management. Its primary goal is to accurately track and record employee attendance data, including clock-in and clock-out times, breaks, leave, and other time-related information in order to calculate wages.

On the other hand, time evaluation involves processing and analyzing the recorded time data to perform various calculations and derive meaningful insights. Its primary purpose is to interpret the captured time data and generate actionable information for payroll processing, cost analysis, and labour reporting.

A time evaluation engine applies predefined rules and policies configured in the system to the recorded time data. It validates against predefined parameters, and calculates various metrics such as worked hours, overtime, paid time off, and shift differentials. It also checks for exceptions – deviations in an employee’s time and attendance data that fall outside predefined rules, such as unapproved absences, breaks that are too long or short, and so on.

The output of a time evaluation engine is typically a set of processed and calculated data, including attendance summaries, labour cost breakdowns, and exception reports.

While the time evaluation engine performs calculations and generates data for payroll processing, it does not usually handle the actual payroll calculations itself. Instead, the processed data is passed to the payroll module or integrated with a separate payroll management system, where the final payroll calculations, deductions, and tax calculations are performed based on organizational policies and legal requirements.

By accurately evaluating and managing time, businesses can optimize shift scheduling and compensation management, monitor employee performance, and make informed decisions regarding resource allocation and workforce planning.

Benefits of Time Evaluation in the Leisure and Hospitality Industries

In the leisure and hospitality industries, customer satisfaction is directly tied to employee performance in many cases, which means time evaluation can have a significant impact on business outcomes.

Below are some of the key benefits of time evaluation in these industries – on its own and when combined with other modules of WFM software.

Identifying Areas of Waste and Inefficiency

Time evaluation can help businesses identify areas where time is being wasted or where processes are inefficient by tracking productivity.

A concrete example is in the housekeeping department of a hotel, where the hotel would track the time housekeeping staff take when cleaning and preparing guest rooms.

The data may reveal that staff are unable to complete the required number of rooms within their allocated hours, which could indicate a bottleneck in the process (such as spending too much time moving from one room to the next or taking too many trips to the store room – well-known inefficiencies in hospitality).

Another issue that could be revealed is that certain employees are completing the required workload within their shift while others are not. This may suggest the need for additional training or the need to standardize the way in which certain tasks are done, ensuring that each employee takes a consistent and efficient approach.

In other cases, it may mean investigating barriers to employee productivity – as only 20% of working hours are spent on high-priority tasks, and in the UK, employees spend more than two hours per day doing anything that is not considered to be work.

Managing Complex Employee Scheduling

Providing exceptional guest experiences heavily relies on having the right employees in the right place at the right time. However, these industries often face unique challenges related to fluctuating demand, multiple shift patterns and event-driven staffing needs.

Analyzing time and attendance data provides insights that can inform the scheduling based on these complex requirements, allowing managers to create and adjust schedules based on specific skill requirements, staff availability, and the booking of special events.

WFM software also enables businesses to analyze historical trends, which helps in accurate demand forecasting and workforce planning, ensuring that the right number of employees are scheduled to meet anticipated guest volumes, taking into account seasonal variations and other factors.

This also helps in addressing smaller-scale variations, such as determining the optimal staffing levels for different times of day or week. This helps prevent overstaffing during slow periods and understaffing during peak times, leading to more efficient use of resources and improved customer service.

Effective Training and Development

Time evaluation data is an important part of talent management, providing insights into employee productivity and other performance management areas. This data can then be used to identify training needs and implement targeted development programs.

By investing in employee growth, businesses can elevate service quality, resulting in a positive impact on guest satisfaction and loyalty. In addition, training and development is a crucial part of motivating Gen Z employees, so it’s more important than ever to be well-informed about their needs.

Enhanced Staff-Guest Ratio

Effectively managing labour hours and schedules helps to ensure that the staff-to-guest ratio is appropriate. This means having enough employees available to deliver personalized and attentive service to guests, resulting in a positive guest experience.

More Benefits

Below are some additional benefits that apply in many industries.

Lower Costs
Optimized resource allocation leads to labour cost savings (from 3% to 7% with our workforce planning software).

Compliance
Ensures compliance with various labour regulations such as break requirements, maximum working hours, and overtime rules, reducing the risk of legal penalties or labour disputes.

Automation
The software automatically takes into account factors such as overtime, public holidays, weekend, or other required conditions.

Compliance with Service Level Agreements
Meet SLAs by accurately tracking employee working hours and ensuring staff coverage during specific service hours or contractually obligated time frames. This ensures that service commitments are met, leading to satisfied guests and maintaining strong partnerships with clients.

Integrations
Workforce software can integrate with systems such as payroll and other SaaS HR management solution. This allows for seamless data flow, eliminating the need for manual data entry and reducing the risk of errors or discrepancies.

Payroll Efficiency
The integration with payroll software automates the calculation of wages, overtime, and other payroll-related tasks. This reduces the administrative work involved and minimizes payroll errors, ensuring that employees are paid accurately and on time.

Real-Time Monitoring
The real-time monitoring of time-related data enables managers to address issues promptly and adapt to unexpected changes with ease.

Employee Self-Service
Time evaluation software often provides self-service capabilities, enabling employees to view their schedules, request time off, and access their time-related information. This empowers employees and further reduces administrative overhead.

Increased Revenue
The implications on revenue relate to optimized workflows and staffing levels, and improved customer service as a result. In addition, factors such as timely pay and insights into professional development needs may help retain employees.

Time Evaluation with the Best Workforce Management Software
Using an enterprise workforce management system facilitates all the benefits listed above. The core of our WFM solutions is an advanced time evaluation engine, providing the following:

100% accurate and timely pay slips for all legislations, Collective Labour Agreements or local business rules.
Full compliance and support for multinational organizations; ISAE3402 and GDPR approved.
Multinational and multibranch setup within one database – all parts of your organization with different legislations or regulations are managed centrally.
Within the sets of regulations, you can vary the parameters based on employee type, function, location, department or even per employee, if required.
Automatically updates in line with changes to the setup of regulations, ensuring calculations are always accurate.
The re-calculation analyser lets you retrace your steps, indicating why the results are what they are.

Conclusion

Using the right workforce management software that has a powerful time evaluation engine equips organizations to efficiently manage their workforce, improve productivity, control labour costs, ensure compliance, and enhance the overall guest/customer experience.

It simplifies and automates administrative tasks, saves time, and enables businesses to focus on delivering exceptional service while effectively managing their most valuable resource – their employees.

These benefits enable businesses to consistently deliver exceptional guest experiences, exceed customer expectations, maintain efficient payroll processes, and ultimately thrive in a highly competitive market.

Our renowned enterprise workforce management software ensures that employees with the right skills are in the right place at the right place, and at the right cost – contact us today to book a demo.

The Psychology Behind Change Management: Why Do People Resist Change?

The Psychology Behind Resistance to Change

The Fogg Behavior Model

Motivation

Ability

Kennis

Daniel Kahneman’s “Thinking Fast & Slow”

System 1 (Fast Thinking)

System 2 (Slow Thinking)

Robert Cialdini’s Seven Principles of Persuasion

More Reasons for Change Resistance

Lack of Awareness about the Reason for Change

Change in Job Role

Fear of the Unknown

Lack of Support from or Trust in Leaders

Exclusion from Decisions Related to Change

Reasons Managers Resist Change

Burnout

Technological Vs. Process Change

Resistance to Technological Changes

Resistance to Process Changes

Conclusion

MORE INFORMATION ABOUT MANUS WFM

How Does WFM-Consultancy Help Yield Better Results?

Tailored Services for Existing Customers and New Contacts

For Existing Customer

For New Contacts

Our WFM Consultancy Process

Why Choose our WFM Consultancy Service?

Cost Savings

Profound Expertise

Tailored Solutions

Gain Competitive Edge

WFM Consultancy FAQ

Which Companies Can Benefit from WFM Consulting?

Why Would I Need WFM Consultancy?

Is WFM Consultancy Worth It?

How Will WFM Consultancy Help Me Keep My Workforce Motivated?

Conclusion

Eager to Learn More About WFM-Consultancy Sevices?

Combined Knowledge for Effective Planning & Happy Employees

Shared Vision & Values

Partnership Benefits

Enhanced Solutions for Retailers

Webinar 10 October

About Speakap

What to expect from the latest release of our Workforce Management Software?

The same powerful WFM-software, simplified use

Improved User Inerface

The ultimate in reponsiveness

Cleaner Visuals and Navigation

Customizable Role-specific Dashboards

Custom Filtering

Manage-by-Exeption

Backend: Enhanced Performance

Developments to “Manage by Exception”

Blockages

Time and Attendance and Labour Forecasting

A More comprehensive API

Same Partnership and Support

Eager to know more about MANUS 5?

WFM- Software can help in many ways

Logistic challenges and their solutions

Labor cost control

Shortage of staff

Hither operational costs

How can the right WFM-software help to optimize labor costs?

Juggling between diverse roles and contract types

How can WFM-software help to manage complexity?

Organizational structure transparency

Predicting staffing needs

How WFM-solutions can help to predict your staffing need

Competence based scheduling

How WFM-solutions can help with competence based scheduling

Just-in-time deliveries

How can WFM-solutions help with Just-in-time deliveries?

What else is possible with the right WFM-software?

Integrating with other systems

WFM and WMS integrations

Payroll Integrations