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.

Is the ‘Four Day Work Week’ Set to Become a Reality Worldwide?

Trends / 23 May 2023

The traditional Monday to Friday 40 hour week has been the default working pattern for decades, but as we enter a new era of work-life balance, the four day work week is gaining traction around the world.

This revolutionary shift has been fuelled by studies that show how overworking leads to burnout, decreased productivity, and poor mental health – while, on the contrary, shorter working weeks lead to greater productivity and other positive outcomes.

In this article, we’ll explore the origins of the four-day work week and discover why it’s gaining momentum as a new standard for the modern workforce.

Benefits of the Four-Day Workweek

The benefits of a shorter workweek are numerous, for both employees and employers. They include the following:

Improved work-life balance: Having an extra day off each week allows employees to have more time for personal activities, leisure, family commitments, pursuing hobbies, and taking much-needed rest. This leads to reduced stress and better overall well-being.
Increased employee satisfaction and engagement: Offering a four day workweek can boost employee morale, satisfaction, and motivation. Employees appreciate having more control over their time and being able to enjoy the benefits mentioned above. This, in turn, can improve retention, loyalty, and engagement levels.
Enhanced productivity: While it might seem counterintuitive, a shorter work week has the potential to increase productivity. Research and various pilot projects have shown that employees often experience a heightened sense of urgency and focus when they have fewer work days available and, as a result, they may become more efficient, prioritize tasks effectively, and experience improved concentration levels. (Click to read more about boosting retail productivity.)
Reduced absenteeism and burnout: A well-rested and rejuvenated workforce is less likely to experience exhaustion or seek additional time off for personal reasons. This can lead to lower absenteeism rates and decreased occurrences of stress-related burnout.
Attraction and retention of talent: Implementing a four-day work week can serve as an attractive perk for potential job candidates and is a key differentiator in a competitive job market. It can also improve employee retention rates, as staff are more likely to stay with an employer that values their well-being.
Increased sustainability: A four-day workweek means less energy and water consumption, and less waste generation. In addition, commuting is a significant contributor to CO₂ emissions and air pollution; with fewer commuting days, there would be reduced use of public transport and less traffic congestion, leading to lower emissions from cars and a decrease in fuel consumption.

History and Evolution of the Four-Day Work Week

The 40 hour, 5-day work week was not always the norm. Going further back, working more than 60 hours each week was the standard and various social movements fought to change that across the world.

Some milestones that have brought us to where we are today are as follows:

The early 20th century: The concept of shorter work hours gained traction during the labour movement of the late 19th and early 20th centuries. Workers in the US began advocating for an eight-hour workday, with the slogan “Eight hours for work, eight hours for rest, eight hours for what we will”; a similar sentiment was demonstrated in Europe. While the focus was on reducing daily working hours, this movement laid the foundation for later discussions on shorter workweeks.
The ILO: In 1919, the International Labour Organization (ILO) was founded, with the objective of promoting social justice and improving working conditions worldwide. The ILO advocated for the eight-hour workday and led to international agreements and conventions supporting shorter workweeks.
Henry Ford’s observations: In the 1920s, Henry Ford discovered that reducing the work week from 60+ to 40 hours gave rise to greater productivity. Observations like this from influential businesses and public figures, along with the work of activists, helped usher in more reasonable work schedules.
The Kellogg’s six-hour day experiment: In 1930, the cereal manufacturer began a six-hour workday experiment. The results were positive, including increased productivity and reduced turnover, but it was eventually abandoned which was allegedly due to opposition from management, among other factors.
The Great Depression: During the 1930s, the Great Depression led to high unemployment rates, which sparked interest in alternative work arrangements. Some suggested reducing the workweek to distribute available work among more people and alleviate the unemployment crisis. In 1933, the US Senate passed a bill for a 30 hour work week, which was later abandoned.
The late 20^th century: This period also saw renewed efforts in Europe to address work hours and improve work-life balance with some countries, like France and Germany, implementing legal reforms that gradually reduced the standard work week. Eventually, France introduced the 35-hour work week in 1998.
The Netherlands’ part-time law: The Netherlands has been a pioneer in advocating for reduced work hours. In the 1980s, the Dutch government introduced the “Part-Time Law,” which aimed to create more job opportunities by encouraging employees to work fewer hours. The law provided financial incentives to both employers and employees, promoting a better work-life balance. As a result, part-time work became more common in the Netherlands, and the country has one of the highest rates of part-time employment in the world.

Developments Worldwide and Case Studies

In recent years, the idea of shortening the work week has gained renewed attention around the world. One influence has been the COVID-19 pandemic, which significantly disrupted traditional work patterns and accelerated the adoption of flexible arrangements. As people had to work from home during lockdowns, managers saw that employees could be trusted to perform well despite the changes.

Combined with research from the non-profit organization 4 Day Week Global (4DWG) and other pilot projects, there is a strong case for implementing this new approach.

The Perpetual Guardian Trial, New Zealand

4DWG was behind the influential Perpetual Guardian trial. In 2018, this New Zealand-based company had employees work four days a week while being paid for five. The experiment resulted in a 20% increase in productivity, higher employee satisfaction, and improved work-life balance. As a result, the company made the four day work week permanent.

Microsoft Japan

Microsoft Japan also implemented a four-day workweek in the summer of 2019. The company reported a 40% increase in productivity, as well as a 23% reduction in electricity costs and a 59% reduction in paper consumption. 90% of employees involved preferred the shorter week.

Iceland

In Iceland, the government and trade unions conducted trials from 2015-2019 involving around 2,500 workers across various industries, reducing their work hours from 40 to 35-36 per week without any reduction in pay. The trials were an ‘overwhelming success’ and productivity remained the same or improved in the majority of cases. By 2021, 86% of the country’s workforce had the right to reduce their work week.

Spain

In March 2021, the Spanish government launched a three-year pilot project in order to study the effects of a 32-hour work week that runs over four days (with no reduction in pay). The project involves around 200 companies.

The Netherlands

The average working week in the Netherlands already clocks in at 29 hours. There are at least 300 companies in the country offering a four day, 32-hour week as the standard (without a reduction in pay).

Belgium

As of November 2022, employees in Belgium have the right to request a four day week, but employees must still work the same number of hours as before.

The United Kingdom

Many UK companies are experimenting with this approach. According to a survey by Harvard Business Review, 50% of business leaders reported increased employee satisfaction, reduced employee sickness, and cost savings of almost £92 billion per year.

Will the Four Day Work Week Catch on Globally?

The adoption of a shorter workweek depends on various factors, including cultural norms, labour laws, industry practices, and the willingness of employers and employees to embrace alternative work arrangements.

As the younger workforce enters the job market, there is a growing demand for work arrangements that prioritize flexibility and well-being. Thus, as employee expectations evolve, employers may be more inclined to consider shorter workweeks to attract and retain talent and motivate Gen Z.

The feasibility and applicability of a four-day workweek can vary across industries; knowledge-based industries may find it easier to adopt these new arrangements, while those with round-the-clock operations, such as manufacturing or customer service-oriented roles, may face more challenges.

Despite the promising results that many companies have experienced, some organizations stopped exploring the four day work week due to the complexity of managing it in their unique circumstances, as well as staffing concerns, among other factors.

While it may be a gradual shift, more and more nations are experimenting with shorter weeks and making the changes permanent. In addition, researchers have reported that employees working in such companies have said they couldn’t be paid enough to go back to working the full five day week. So, it seems that for the majority of those that have started walking this path, there is no turning back.

Conclusion

The four-day workweek is gaining momentum around the world as a new standard for the modern workforce. It’s not surprising considering the benefits: improved employee well-being, retention and job satisfaction; increased productivity; reduced operating costs; and various environmental benefits.

Despite the promising results in certain contexts, its widespread adoption worldwide will require further research, experimentation, and societal shifts. It will depend on the collaboration and efforts of governments, employers, employees, and other stakeholders in order to create the necessary policy frameworks, cultural acceptance, and operational adjustments.

If you’re not ready to take the plunge and reduce your organization’s work week, there is another way to boost productivity and efficiency – workforce management software. Manus WFM is the most experienced provider of workforce software solutions, serving multinational organizations in Europe and beyond. Contact us today to book a demo.

Beat the Slow Summer Season and Boost Retail Productivity

Retail / 09 May 2023

As summer approaches, retailers face the challenge of maintaining productivity during the holiday season. Employees take time off and customers’ shopping patterns change as they spend more time outdoors, enjoying the weather. These changes can make it tempting to slow down and take it easy until autumn.

For many businesses, however, slowing down is not an option. Fierce competition combined with economic challenges means retailers need to stay focused on keeping retail productivity levels high and hitting sales targets.

The summer months are also traditionally the slowest period for e-commerce sales as well; however, PwC’s 2023 Global Consumer Insights Pulse Survey revealed that 43% of consumers intended to increase their online shopping before the end of the summer – things may be different to usual this year, so retailers with online stores can capitalize on that.

This article will review some tips that retailers can use to beat the summer struggles and maintain their productivity.

7 Ways to Boost Retail Productivity During the Holiday Season

1. Review Last Summer’s Sales Data

The first step in planning for the upcoming season is to review the sales data from the previous year to determine which products sold well during the summer season; from there, you can plan to stock those products accordingly.

2. Offer Summer Promotions

Depending on your inventory, you may have the opportunity to attract customers through seasonal campaigns i.e., promotions on summer-related products such as swimwear, sunglasses, items for the beach, sunscreen and related cosmetics, camping and outdoor gear, outdoor sports equipment, garden furniture and equipment, seasonal home décor, and so on. Food retailers can do the same with promotions on popular summer items such as BBQ-related inventory, ice-cream, cold drinks, etc.

For any retail business that does not stock such items, it’s worth considering which segments may be more active during the summer and planning promotions that will attract them. For example, consider a region that gets an influx of tourists at this time of year; if there is an overlap between what those tourists are likely to be doing in the area and what your inventory has to offer, there may be an angle to use for promotion in that regard. It’s just a matter of discovering which segments may already have an interest in your products during the summer season and capitalizing on that.

Even if your brand does not currently stock items that are popular during summer, is there a way that such items could relate to what you already sell? Could you expand your inventory to include them?

Finally, if you sell items that are in-demand throughout the year but you experience reduced foot traffic in the summer, setting up promotions for online orders is another option.

Advertising all promotions through email marketing and social channels will be important because, if customers are not visiting stores in person so much, they won’t come across these promotions any other way.

3. Drive E-Commerce Sales

Above, we mentioned encouraging customers to order online if they are less likely to visit stores in person. Once they are online, here are some suggestions to keep them returning as well as bring in new customers:

Improve the online shopping experience: Make sure that your e-commerce platform is user-friendly, easy to navigate, and mobile-responsive. If you haven’t already, you can implement features such as live chat, product reviews, and personalized recommendations to enhance the experience and encourage customers to make purchases.
Focus on customer service: Ensure that your customer service teams are readily available to answer questions, resolve issues, and provide support to online shoppers. Again, implementing chatbots helps reduce response times and as well as your staff’s workload.
Offer free shipping and returns: Offering free shipping and returns during the summer months can help reduce the barrier to entry for online shoppers who are hesitant to pay for shipping or return fees.
International promotions: International retailers aren’t limited by the seasons. While it’s summer in Europe, setting up promotions on winter products for customers living in areas where it’s winter will help compensate for slower in-store traffic.

4. Analyze Weather Data

Depending on your location, there may be times during the summer when temperatures are more mild, or there may be unexpected rain or storms. These weather changes may drive customers back to their usual patterns, so it’s important to be prepared for possible surges and schedule adequate staff for those days – you will then be able to capitalize on the busier days within the season.

In addition, weather data can inform marketers of potential heatwaves, enabling the promotion of related products just in time. This type of agility is easier with online sales as promotions can be prepared in advance; when the forecast proves to be correct, customers will be informed at the click of a button.

5. Cross-Train Employees

To ensure employee productivity in retail, cross-train staff – this helps to make the most of the workforce when employees are off on holiday. Instead of being short-staffed, the respective departments will be able to transfer employees between them in order to cover all bases.

6. Focus on Other Business Activities

The holiday season is a good time to focus on other aspects of the business, such as stock takes and inventory management, staff training, and refurbishments. Aligning such activities with times of slower sales prevents the need to conduct them during the busy autumn and winter seasons when your staff need to be available to conduct their usual responsibilities.

The slow season is also a good time to implement projects such as improving stockroom organization or upgrading technology, whether that’s implementing a new POS system or workforce management solution.

It’s also a good idea to get ahead with planning for autumn during this time, reviewing sales data from the previous year, assessing inventory levels, projecting staff requirements, and planning promotions and events for the upcoming season.

7. Boost Retail Staff Productivity and Morale

When foot traffic slows, boredom will set in, especially for shop floor staff. Here are a few ways to keep them engaged and motivated:

Keep the workplace at the right temperature: Don’t overlook the obvious such as the air temperature in workspaces. In fact, some studies suggest that 22-24 °C is the optimum range for productivity. On the other hand, it depends on the type of tasks being done; some studies show that people perform complex tasks better in cooler temperatures while repetitive tasks are best reserved for warmer workspaces.
Incentives: Offer incentives such as bonuses or prizes for meeting sales goals or other performance metrics. Rewards can boost retail staff productivity and keep employees focused and motivated during the slowest of times.
Host team-building activities: Summer is a great time to plan team-building activities, such as company picnics, BBQs or other outings, helping to build camaraderie.
Provide opportunities for learning and development: Development opportunities is a vital component of ensuring engagement and employee productivity in retail, and summer is the perfect time to do it. Consider it an investment that will pay off once the busy season gets going.
Offer flexible scheduling: During the summer months, many employees may have extra family commitments. Offering flexible scheduling options, such as shortened work weeks or flexible hours can help employees balance their work and personal lives, and reduce stress and burnout.

How to Reduce Costs in the Slow Season

If things don’t go to plan and sales are slow, here are some ways to reduce your expenses:

Staffing: Review your sales reports and consider rostering less staff on quiet days. Also consider restricting your opening hours if it’s clear from your sales data that certain times of day are not profitable.
Supplier management: Review and negotiate with suppliers to establish better terms.
Reduce inventory: Reduce your inventory levels in order to lower holding costs. This can be achieved by slowing down or delaying the procurement of new stock, as well as avoiding stocking items that are not selling well given the season.
Focus on profitable products: As alluded to above, focus on selling products that have a higher margin during the summer.
Use technology: Technology can streamline your operations and reduce costs. For example, inventory management software can help to reduce holding costs while workforce management software can reduce labor costs by up to 10%.

In Summary

Amidst a drop in foot traffic and employees taking time off, the challenge of maintaining retail productivity emerges. However, there are plenty of strategies to implement that can help to boost those summer sales figures.

Reviewing the previous summer’s sales data is a good place to start in order to determine which products are likely to sell best. Sufficient stock can then be held and items that did not sell well can be ordered in smaller quantities.

Other suggestions included offering seasonal promotions, driving online sales, and keeping a close eye on weather data to ride the wave of related sales trends, and to optimize staff levels in case of unexpected rainy days where customers are more likely to shop in-store. Cross-training employees helps maintain retail staff productivity so that when employees are on holiday, there is always someone available to fill their shoes.

Finally, organizations can use the summer months to focus on other important projects, such as refurbishments and staff training. And remember to boost morale for your shop floor staff who may get bored due to a lack of customers.

MANUS is Europe’s most experienced enterprise workforce management software provider. To discover how we can revolutionize your WFM processes and cut labor costs by 7 – 10%, contact us today to book a demo.

How to Motivate Gen Z Employees on the Shop Floor

Retail / 25 Apr 2023

As Generation Z enters the workforce in increasing numbers, employers are faced with a novel challenge when it comes to motivating and engage this unique generation – a generation with different expectations to their predecessors.

Generation Z – or “Gen Z” – is a cohort that values authenticity, flexibility, and purpose in their work – and they expect their employers to do the same. Employers that cannot provide this will have a hard time retaining retail staff in the future.

With these values in mind, what motivates Gen Z in the workplace? This article attempts to answer this question – we’ll explore practical strategies that retail managers can use to motivate these employees on the shop floor in order to foster a more engaged, productive, and satisfied workforce.

Who Are Gen Z?

Gen Z is the part of the population born between 1997 and 2012. They are the newest generation to enter the workforce and are known for their tech-savviness, entrepreneurial spirit, and desire for work-life balance. They are also the most diverse generation.

Another defining characteristic of Gen Z is their desire for authenticity. They want to work for companies that are transparent, ethical, and socially responsible. They value diversity and inclusion, and they expect their employers to prioritize these values as well.

In addition, they want their work to have a purpose beyond just making a living – they want to feel like they are making a difference in the world and/or pursuing a meaningful career.

Challenges in Motivating Gen Z Employees

Motivating Gen Z employees can be challenging for several reasons.

They are more likely to job-hop than previous generations and may not be as committed to their current job as their millennial and boomer colleagues.
Salary is important to this generation – but what motivates Gen Z in the workplace more than that? Work-life balance. For many members of this generation, it’s a priority, which means that traditional incentives like promotions and salary increases may not be as effective. In fact, Deloitte’s ‘Welcome to Generation Z’ report states that while salary is still important for this cohort, it is less important to them than for any other generation. On the other hand, they have come to expect employers to offer perks and benefits – including flexible working arrangements.
Their expectation for meaningful work combined with shorter attention spans may also cause them to lose interest in their work faster than those of previous generations. Gen Z grew up with smartphones and social media applications such as TikTok, which encourage the fast consumption of bitesize pieces of information as well as constant stimulation and instant gratification. As a result, they may get bored easily if their work is not engaging.
The report by Deloitte also discusses that, despite the stereotypes that have already emerged about Gen Z, these individuals refuse to be pigeonholed and expect a degree of personalization in their working lives.

With these challenges in mind, let’s find out how to motivate Gen Z employees and reduce churn.

How to Motivate Gen Z Employees: Strategies

Training and Development Opportunities

As mentioned, Gen Z are motivated by work that has a purpose beyond just making money. Employers can therefore create meaningful opportunities, and part of that is providing training and development that help them to excel in their role and prepare them for the future.

Provide Opportunities that Align with Their Values
One approach to training and development is to provide opportunities that align with the interests and values of Gen Z. This may seem difficult when their role involves repetitive tasks, but it’s possible.

For example, if an employee is passionate about sustainability, they may be more motivated if they are given opportunities to learn about eco-friendly products and production processes the company uses. In turn, this knowledge may provide them with a better basis for discussing such issues with customers, further promoting the brand’s reputation as a sustainable business.

Other opportunities could involve participating in recycling initiatives or charitable activities associated with the company, as well as being connected with opportunities to volunteer in their community.

Showing that the company cares about issues that are important to Gen Z can help to create a sense of purpose and meaning in their work. Employees are then no longer just stacking shelves or providing point-of-sale service – they are contributing to something meaningful.

It’s also important to remind employees why their work matters. Even the most straightforward or repetitive of roles makes a difference – a supermarket employee, for example, is ensuring food gets to the table of hundreds of thousands of local residents. Reminding them about this often will increase morale.

Offer Non-Linear Career Paths
Gen Z is not content with climbing the ladder in a linear way, so it’s important to offer shop floor staff cross-departmental opportunities. Someone that starts out on the shop floor many not be interested in becoming a department or branch manager, and they might not be interested in sales either. However, they may be well-suited to operations.

Therefore, to keep shop floor staff motivated in their current roles as well as retain them for the future, they need to see that their employer honors the possibility that they may change their minds or take the road less travelled.

In addition, staff should be offered training opportunities that allow them to develop a broad range of skills that will apply to different roles.

Provide Mentoring and Coaching
Another consideration when it comes to development is to provide mentorship or coaching. Staff may appreciate having a more experienced colleague to turn to for guidance and support, and this may help them feel more valued by the company.

Offer Flexible Scheduling

Gen Z employees value flexibility in their work schedules and they have come to expect it. The retail industry comes with unsociable hours at times, with employees having to work weekends and in some cases, evenings. It is much more engaging to rotate the timetable so that it is not always the same people working at the weekend.

Even having one out of four weekends free each month could make the world of difference to an employee and prevent them from looking elsewhere for opportunities that provide them with better work-life balance.

Our solution includes an Employee Self-Service app which lets staff plan and change shifts to their liking.

Use Technology

Gen Z are comfortable with the latest technologies and are used to having it at their fingertips to make life easier. As a result, they appreciate tools like mobile apps that make it easier to do their jobs. One example is the use of a mobile app to find important information and resources related to their role.

Technology may also be used to deliver training in the form of videos, podcasts, or interactive courses that include gamification elements.

Another use of a mobile app could be to create a performance tracking and feedback system that incentivizes staff through rewards. Again, gamification may be used here to make things more fun and interactive, such as a points system where staff are rewarded for completing certain tasks or hitting certain milestones or sales targets.

You can also make their lives easier using technology such as our workforce management software – MANUS WFM. It lets staff easily track time and request vacation – all with a modern, sleek user interface.

Create a Positive Work Culture

Creating a positive work culture is an important part of getting Gen Z buy-in. This means providing opportunities for feedback and collaboration, ensuring diversity and inclusion, and creating a sense of community and belonging. Again, Gen Z employees want to feel like they are part of something bigger than themselves, and a positive work culture can help foster that sense of connection.

Wellbeing initiatives also come into play here, including support for mental health and general wellbeing, the provision of healthy meals, and so on. However, it also includes anti-bullying policies and measures that minimize toxic social dynamics and management styles (speaking of which, micromanagement will not go down well with Gen Z as it communicates mistrust and a lack of confidence in an employee’s ability to perform – which is not popular among a generation that highly values authenticity and transparency).

The Importance of Communication in Creating a Positive Work Culture
Transparency and open communication is key to ensuring an environment in which employees are content and, therefore, able to perform at their best. All employees should feel comfortable in voicing concerns, suggestions, and other feedback.

While it may not be easy to ensure that all employees have a voice in a large organization, implementing the processes and systems to support that will make all the difference in terms of culture. After all, who wouldn’t want to work in a company that makes them feel like equals/liked valued contributors?

Neurodiversity
The often-overlooked area of neurodiversity needs consideration by any large organization that wants to promote a positive workplace. As Generation Z has grown up, general awareness about Attention Deficit Hyperactive Disorder (ADHD) and Autistic spectrum Disorder (ASD) and other neurological differences has grown remarkably. Regardless, many organizations fail to train their staff about such topics.

With up to 20% of the population being neurodiverse – and with diagnoses increasing – it is important for employers to recognize not only their required accommodations, but how they bring competitive advantage to the workforce.

While the law in many regions already requires employers to provide reasonable accommodations for such employees, that does not mean that employers truly understand their needs. It is therefore beneficial to train management so that such individuals can be well-understood.

Again, it comes down to flexibility – in working arrangements as well as management styles – and open communication is the key ensuring nobody has to suffer in silence with difficult working conditions.

Give Feedback and Recognition

Gen Z value not only the opportunity to give feedback, but to receive it as well. Organizations should therefore seek to provide regular feedback, including one-to-one reviews.

Regular praise is also important – a “well done” or “thanks for doing such a great job today” makes a huge difference. Because what motivates Gen Z in the workplace more than knowing their work has meaning and value? Not much. They want to know how they are performing in their roles; they want to feel like their opinions and ideas are valued; and they want to know that their work is making a difference.

In Summary

The entrance of Gen Z to the workforce presents novel challenges. This generation is unique and has higher expectations from their employers than their predecessors – expectations about flexibility, work-life balance, and the opportunity for fulfilment – expectations of being treated like a human being whose needs are respected. In addition, their values are important to them and they seek employers who demonstrate social responsibility.

Many organizations are already taking steps in the right direction when discovering how to motivate Gen Z employees, such as implementing new learning technologies and offering more flexible working arrangements. Other steps to take include offering professional development opportunities including non-linear career paths (and the training to support them), and the creative use of technology.

Manus Software Europe/Softbrick B.V. are Europe’s favorite provider of enterprise workforce management software. If you’re looking to improve your WFM processes including payroll and attendance management, contact us to book a demo.

How to Encourage Workforce Management Adoption in Your Organization

WFM / 11 Apr 2023

Workforce management is an essential aspect of any organization but without successful employee adoption, its full benefits will not be realized. There are several reasons that employees may resist change, including a lack of incentive as well as fear of new technology threatening their jobs.

To overcome these obstacles when implementing new workforce software or processes, it’s helpful to have a plan in place to encourage employees to get on board. This article provides some suggestions for how to do that, so you can reap the rewards that the best workforce management software has to offer throughout the entire employee lifecycle.

What Are the Barriers to Adopting New Workforce Management Solutions and Processes?

Resistance to Change

Employees may be resistant to change, especially if they are comfortable with the current way of doing things. Additionally, they may feel overwhelmed by new systems or processes. After all, so much change has occurred over the last couple of years due to the pandemic that the thought of any more disruption may cause some individuals to disengage.

Fear of Job Replacement

Another cause of resistance is the fear of AI potentially automating their jobs. While there are certain jobs that are likely to be replaced in the coming years, the majority of your workers will not be affected. Their roles may change, but they won’t become obsolete.

While we know this, your workers may not – so it could be worth addressing during any training sessions held when you implement new technology.

In fact, a Voice of the Workplace in Europe report by Deloitte shows that 65% of respondents said that the flexibility to change tasks or working environment was important or very important to feeling motivated/happy – so, this could in fact be a motivating factor for adoption.

Perceived Indifference to Staff Needs

Another issue is that many staff feel that their needs are not addressed when new technology is implemented.

An international study by PWC that included participants in the UK and Germany showed that, while 90% of C-suite executives said their company paid attention to employee needs in this scenario, only 53% of staff agreed.

Engage employees in the process, gather their perspectives and feedback, and take their needs into account when making decisions about change.

Lack of trust

If employees do not trust their managers or the organisation, they may be hesitant to adopt a new system. They may feel that the new system is being implemented for the benefit of management rather than for the benefit of employees.

Communication barriers

If there is a language or cultural barrier between employees and management, it may be difficult to effectively communicate the benefits of the new system. This can result in a lack of understanding and increased resistance.

Organisational culture

Some organisations may have a culture that is resistant to change or innovation. This can make it challenging to implement a new system that is perceived as a departure from the status quo.

Methods to Improve Adoption of Enterprise Workforce Management Software

Conduct an Initial Survey

Before launching any new system, it’s beneficial to conduct a survey so that employees can share their perspectives on it. This will provide insights into the barriers to change among your particular workforce. From there, you can use appropriate methods to address the situation.

Communicate the Benefits of Workforce Management Software

As keen as any executive or manager may be to implement new systems because they’re aware of the benefits, it’s unlikely that most staff will share that enthusiasm. It’s therefore important to communicate the benefits of any new system to employees.

However, we’re not talking about the benefits the company will gain. It’s not likely that your shop floor staff are interested in the company’s financial success – at least not beyond knowing their job is secure. It’s therefore more important to communicate how the software will benefit them.

How will it make their lives easier? It will make it easier for them to request vacation time and have it approved. It will make payroll and compensation management more efficient, ensuring they are paid correctly and on time every month. Employee scheduling features will make rosters more organized. Think from their perspective and you’ll find many benefits to discuss.

Overcoming Reluctance

The principle above can also be used to reframe the aspects of a new WFM system that employees may not like. For example, they may feel resentful about having to use fingerprint scans to clock in if that was not part of your former attendance tracking process. While many employees do commit time fraud, the remaining honest employees may resent the feeling of mistrust that comes with such monitoring.

To overcome these types of issues, reframe them in a positive way. For example, let them know that the new system accurately tracks their hours to ensure they are paid correctly and on time every month, with no delays caused by any disputes.

Another step to take is to identify staff that are particularly skeptical, as this may have a negative impact on those who would otherwise be willing to implement new systems and processes. Make a point of having one to one conversations with them about their concerns, reassure them, and again, remind them of what’s in it for them.

Discuss the Benefits for Senior Staff

If it’s senior staff that need convincing, give examples of how workforce management has improved operations in other organizations. Back up your claims in with data to show the impact of workforce management; this can include data on performance management, efficiency, cost savings and other key performance indicators. (Our total workforce management system is proven to reduce labor costs by 3% to 7%.)

Also, let them know ahead of time that you’re investigating a new system and ask for their perspectives on the matter. Explain how it supports business objectives and the objectives of their individual departments. Highlight the way it will improve the efficiency of their working days.

Involve Employees in the Process

Another way to encourage adoption is to involve employees in the process, and this can be done by soliciting feedback and input on new systems and processes. As mentioned, when employees feel like their opinions are valued and that they have a say in the direction the company is going, they are more likely to be invested in its success. Overall employee engagement will likely improve as well.

Remove the Alternatives

If employees have no option but to use the new workforce management solution, then they will have no choice but to use it. If you’ve just transitioned away from paper-based vacation requests or timesheets, for example, let staff know that this documentation can no longer be accepted. They’ll soon be willing to get on-board with digitization if it’s the only way for them to get time off or get paid.

Appoint a Champion or Dedicated Team

Having an individual or a team that is responsible for encouraging adoption will help set the tone for other staff, making it easier for them to follow suit. Large organizations may decide to appoint a team for each department; these individuals may also be assigned the task of communicating the benefits, as discussed above.

As well as encouraging other employees to use the system, these early users can be a helpful source of feedback during the transition stage.

Send Regular Reminders to Inactive Accounts

If your system requires users to set up or activate accounts but your staff aren’t doing it, send reminders as often as needed to ensure they take the necessary action. Eventually, they will get tired of the notifications and will comply just to make them stop.

We’re not talking about spamming or harassing them with numerous emails per day, but anywhere from once per day to once per week will encourage them.

Another way to incentivize them would be to hold a competition, where the team or department with the most activations within a specified period of time wins a prize of some sort.

Make the Transition Gradual

This will not always be an option, especially when implementing new software. However, if you are making smaller adjustments to your WFM processes, phasing them in step by step allows employees to adjust gradually and become comfortable with new processes before moving on to the next change.

Provide Training and Support

When implementing new software, provide thorough training and support to employees. This can include hands-on training sessions, online tutorials, or Q&A sessions for any staff that are unsure about certain features of your workforce management system. It’s also helpful to provide ongoing help desk support to employees in case they have questions and need assistance.

When onboarding new staff, make sure the new systems and/or processes are part of their training. Don’t let them learn on the job from staff who may be reluctant to use the new system or do not have a clear understanding of its functionality.

Ensure new staff only know the new ways of doing things – and not the old processes that you want to leave behind.

Keep Training Simple

Make sure any training you implement is easy to follow and does not involve a lot of technical jargon. Your staff should not need to consult any user manuals in order to understand a system’s functionality – and if they do, it may be a sign that you’re not using the right workforce management software. (MANUS WFM is user-friendly and has a clean and intuitive user interface design.)

Continuously Evaluate and Improve

Finally, it’s essential to continuously evaluate and improve your workforce management plan. Collect feedback from all relevant stakeholders, analyze the data, identify areas for improvement, and refine your processes and systems accordingly. By doing so, you can ensure that your workforce management plan remains relevant, effective, and sustainable.

In Summary

Having a plan to encourage adoption is important for the success of any new workforce management systems or processes. While some staff may be reluctant to embrace change, there are many ways to make it easier for them. These include communicating how the software makes their jobs easier and appointing designated individuals to advocate for the new software. You can also remove the alternatives, giving them no option but to get on the bandwagon.

In addition, conduct thorough training in different formats for different types of learners, and have someone available to provide ongoing support.

One of the best ways to ensure WFM adoption is to select an easy to use system. MANUS WFM provides state-of-the-art WFM solutions throughout Europe and beyond, helping large, multi-national organizations to optimize their workforce and payroll processes.

Our systems are cloud-based for easy implementation and integration with other systems – which is another way WFM can make your people’s day-to-day tasks easier. Contact us today to arrange a demo and see how your WFM processes can transform.

How Will AI Change Workforce Management Software in the Future?

Trends / 28 Mar 2023

A survey by Microsoft indicates that 71% of European companies consider artificial intelligence (AI) an important topic on the executive management level. In addition, 89% of respondents expect AI to bring about business benefits through optimizing operations.

The rise of AI has opened up new opportunities for streamlining a range of HR processes. From talent management to compensation management to WFM, AI can manage complex operations in ways that were once impossible. But what does the future hold?

This article will review some of the ways in which AI is already in use, as well as some applications that are likely to grow in future.

Common Applications of AI in Enterprise Workforce Management Systems

Automated Employee Scheduling

Creating accurate employee schedules is a critical part of any organization’s success, but it can often be time-consuming. However, with AI-powered workforce management solutions, this task becomes much more manageable.

AI can automate the scheduling process by taking into account employee preferences, qualifications, and availability to create optimal schedules. This not only reduces the time and effort required for managers to manually create schedules but also ensures that employees are assigned based on their skills and experience.

Furthermore, AI can help overcome the challenge of calculating accurate resource requirements. With the ability to analyze vast amounts of data, it can accurately forecast future demand and create flexible schedules for employees. This allows managers to improve the allocation and utilization of resources, reducing the risk of burnout, wasted work hours, or delays in completing tasks.

Workforce management solutions leveraging AI can also evaluate the effect of unplanned time off on the schedule. This allows managers to create contingency plans and ensure that work is distributed evenly across employees, leading to a more balanced workload and reduced stress levels.

Data-Driven Decision-Making

The best workforce management software enables data-driven decision-making. With the help of AI, managers can make informed decisions based on data insights into workforce trends, performance metrics, and other key data points.

Machine learning algorithms are used to analyze how users, especially managers, handle different tasks, and once strong patterns are identified, they can be automated. For instance, if the AI system detects that a manager has performed an action 20 times, it will prompt the manager to automate the action from then on.

One of the benefits of using AI for data-driven decision-making is that it allows managers to listen to what their data is telling them. AI can alert managers to employee patterns that could highlight anything from a flight risk to an employee’s potential for promotion. Weekly reports generated by AI can also help managers understand the impact of edits they’ve made to the schedule.

Predictive Analytics

Predictive analytics is becoming increasingly important in workforce software, as discussed in a previous article. To recap, by analyzing historical workforce data, AI can predict future staffing needs, allowing organizations to proactively adjust their workforce schedules and plan for future demands. This can help prevent overstaffing, understaffing, and missed opportunities.

For instance, AI can analyze a variety of data streams relevant to your business, such as public holidays, weather patterns, and big events taking place in the vicinity of your outlets in order to create more accurate forecasts. This can help organizations make better decisions on staffing levels, schedule optimization, and resource allocation.

AI can also help businesses take advantage of unusual data streams that may have previously gone unnoticed. For example, data from Google searches can provide valuable insights into employee health trends.

Search trends for keywords such as ‘colds’ and ‘influenza’ have been shown to correlate with the number of sick days taken in certain months; by analyzing this kind of data, AI can anticipate staffing levels throughout the year and allow managers to plan accordingly in response.

AI-Powered Payroll Processing Software

Payroll processing is a complex task that requires a great deal of attention to detail. The manual processing of payroll can be time-consuming and prone to errors, leading to costly mistakes – and this is where AI-based automation solutions can be a game-changer.

By adopting an AI-based payroll management system, organizations can process payroll accurately and much faster. This leads to on-time and error-free payment, which means happy employees. The complex payment requirements of employees, particularly in hybrid, remote, and flexible work environments, can be managed more efficiently using AI-based payroll processing.

AI-based solutions can also help organizations maintain payroll compliance, which is essential for any organization to avoid penalties and litigation. Navigating payroll laws manually can be challenging; however, AI-powered payroll management solutions can easily apply all required rules during payroll calculations, ensuring the necessary tax rates and other items are taken into account. This makes payroll compliance vastly easier for organizations, freeing up time and resources to focus on other important business tasks.

Growing Areas of AI in WFM

Facial Recognition for Attendance Tracking

Some WFM systems use fingerprint scanning when employees clock-in and clock-out. Another option which is not widely used yet is facial recognition. By integrating this technology with time clocks, organizations can rest assured that employees won’t be able to clock in or out on behalf of their colleagues. These systems send automatic alerts to management if there is a discrepancy between the image stored for the employee and the appearance of the individual in front of the camera.

AI Powered Chatbots for Information Sharing

Chatbots are a form of conversational interface that can simulate human conversation. These bots are designed to understand natural language, which means employees can interact with them as they would with a human colleague.

Chatbots can be used to share all kinds of information, from company policies and procedures to employee benefits and work schedules. This makes it easy for employees to ask questions, seek guidance, or access information without having to go through the time-consuming process of manually searching for it or contacting certain personnel.

One of the key benefits of using chatbots for information sharing is that they can provide personalized responses to employees. Chatbots can use machine learning algorithms to analyze employee interactions and learn from them. This allows them to provide customized responses based on an employee’s past interactions, preferences, and work history.

Moreover, chatbots can also be used to automate the onboarding process for new employees. They can provide new employees with all the necessary information about their roles and responsibilities, the company culture, and more.

Combining AI with the Internet of Things

The Internet of Things (IoT) refers to the network of internet-connected devices that are equipped with sensors and software in order to exchange information and perform various tasks. By leveraging IoT technology, organizations have been able to address challenges related to communication, resource management, productivity, and employee satisfaction.

One example of how AI and IoT could transform workforce management is in the retail industry. By leveraging IoT sensors and devices, such as smart shelves, beacons, and cameras, real-time data could be collected on inventory levels, customer behavior, and store traffic. This data could then be analyzed by AI algorithms to provide insights that can help retailers optimize their workforce.

For example, when inventory levels are low, this would allow store managers to schedule staff to restock shelves during off-peak hours. This data could also be used to analyze customer behavior to optimize staffing levels, helping retailers avoid overstaffing during slow periods and understaffing during busy periods.

Real-Time Productivity Monitoring

The ability to monitor employee performance and engagement in real-time is a powerful tool for managers seeking to optimize employee productivity. However, manually monitoring and evaluating these factors can be a time-consuming and challenging task, particularly in larger organizations.

Thankfully, AI-powered solutions can monitor performance in real-time and alert managers about areas for improvement or the need for corrective action in the moment.

For example, if the software identifies a sudden drop in engagement levels among a particular team or department, managers can take immediate action to address the issue, such as offering additional support or resources, adjusting workloads, or providing training and development opportunities.

Personalization and Skills Assessment

AI has transformed the way employee experience is personalized in the workplace. With the help of AI-powered workforce management solutions, employers can offer tailor-made training, coaching, and career development opportunities to individual employees based on their needs and goals. This not only improves their job satisfaction and engagement but also boosts productivity.

With traditional methods of employee management, there are often difficulties in determining the best way to utilize the time and skillsets of multi-skilled employees.

However, predictive analytics powered by AI can analyze employee data and figure out the most efficient way to allocate their time across different workstreams and skill demands. This reduces the chances of miscalculations based on human appraisal of capability and gut decisions.

Skill usage assessment tools in AI-based workforce management solutions can generate the most optimal schedule for individual employees across various workstreams. These tools can also predict future skill requirements, allowing employers to offer relevant training and development programs to employees in order to upskill and keep up with changing industry demands.

By personalizing employee experiences and utilizing their skills optimally, employers can not only attract and retain top talent but also ensure their business remains competitive in the long run.

Revolutionizing Performance Management

AI-based solutions will become incredibly useful when it comes to evaluating employee performance. By analyzing vast datasets, it can provide accurate and unbiased evaluations of performance which are based purely on objective data, making them fair and impartial.

Both managers and employees prefer fair evaluations, as they enable employees to be recognized for their hard work and achievements, while also providing managers with a clearer and more transparent insight into their workforce. This leads to a more just evaluation process, which ultimately leads to higher levels of employee engagement and satisfaction.

Conclusion

In conclusion, the rise of AI is opening up new opportunities for workforce management that were once impossible. It can revolutionize the way workforce management systems operate in future by providing real-time decision support that ultimately improves productivity and profitability.

Currently, AI may be integrated with a workforce management solution through automated scheduling, predictive analytics for various purposes, and payroll management. In future, we are likely to see AI combined with the IoT in order to leverage sensor data that could help optimize demand forecasting. Other growing applications include facial recognition for attendance management, the use of advanced chatbots for information sharing, and various performance management applications.

MANUS WFM is the most experienced provider of enterprise workforce management software in Europe. To discover how our workforce management system can transform your operations, contact us today to book a demo.

How Does Analytics in Workforce Management Software Increase Revenue and Improve Performance?

WFM / 14 Mar 2023

Analytics allows organizations to make data-driven decisions on the planning and management of their workforce. The insights gained provide a deep understanding of how the workforce and their actions are impacting the bottom line – and from there, interventions can be introduced that will reduce costs and inefficiencies, unlocking the workforce’s true potential.

What is the Difference Between HR Analytics and WFM Analytics?

HR analytics encompasses a broad range of processes – everything from recruitment to employee wellbeing – and analytics modules may integrate with various types of workforce software.

HR analytics help to predict things such as time to hire for a vacant position; it can also optimize the effectiveness of training or assess the impact of external events (such as the pandemic) on morale, engagement, or productivity. From there, helpful initiatives can be introduced – initiatives driven by data.

On the other hand, workforce analytics looks at the non-people-focused processes. It relies heavily on data from your payroll management software, and can uncover insights about performance management, staffing allocation, labor inefficiencies, and so on.

Applying analytics to all areas of HR is valuable; however, this article will focus only on analytics as it applies to Work Force Management.

The Benefits of Analytics in WFM

The overarching benefits of workforce analytics are savings in time and money. More specifically, it allows organizations to accurately:

Predict hiring needs
Optimize rostering
Predict required staffing levels at specific times
Control payroll costs and improve cash flow forecasting
Reduce absenteeism
Improved employee retention
And much more

Workforce analytics allows for a proactive instead of reactive approach to everything from troubleshooting inefficiencies to identifying areas for improvement.

It provides a broad perspective of the workforce and its current and potential problem areas, allowing for solutions to be introduced before problems escalate. Insights can be provided in real-time, allowing for a fast, agile response.

Workforce analytics assists in aligning workforce planning and management with business objectives. For example, the performance of a particular department or shift could be monitored for effectiveness; if issues are found, further probing may reveal what needs to be done about it (i.e., better training, better engagement strategies, and so on). This kind of oversight would take a long time to establish without analytics.

In turn, analytics can in itself help improve engagement and motivation by creating a culture of recognition and strengthening team spirit. When performance data is worthy of praise, the respective teams can be rewarded for their contributions.

Finally, analytics is essential when it comes to optimizing large-scale operations. Multinational organisations gather immense volumes of data in their WFM systems and analytics puts it to good use. It also empowers organisations to derive valuable insights from complex and highly varied data across regions (regarding labor laws, taxation, and so on).

The best workforce management software has integrated analytics features.

Types of Analytics Used in WFM

Predictive Analytics

This form of analytics uses historical data in order to predict trends. These trends may pertain to areas such as labor market changes, employee turnover and skills shortages. Once again, this form of analytics enables a proactive approach by modelling how requirements will evolve over time.

Prescriptive Analytics

As above, historical data is used with these models. The difference here is that recommendations for improvements are made and – in models backed by Machine Learning – the recommendations would be based on what has proven to be most effective in the past.

Diagnostic Analytics

Diagnostic models assess workforce performance metrics in order to uncover the causes behind successes and failures. In other words, it helps to shed light on otherwise hidden workforce issues. Based on these insights, organizations can take the necessary steps to eliminate inefficiencies and improve the required areas.

Use Cases of WFM Analytics

We mentioned above that workforce analytics greatly relies on payroll data. Well, it’s important to note that analytics can achieve more than payroll reporting is capable of; while reporting is beneficial, analytics provides a multi-faceted view of the payroll function and its underlying trends in order to provide decision support. For example, it can help identify which aspects of the organization are most productive and which are having disproportional effects on indirect labor costs.

In a large organisation, absenteeism can slip under the radar. Thanks to analytics, you can find patterns pertaining to specific departments, teams, shifts, or individuals as well as the impact that missed work days are having on business objectives.

Below are some more examples of the types of insights that are possible with workforce analytics.

Minimizing Payroll Errors

Analytics minimizes payroll errors by identifying their cause, allowing companies to find ways to prevent their recurrence. Even the smallest of errors can cause compliance issues, so this is a great benefit.

If errors occur at a specific time of year such as the holidays, it suggests that the workflow or staffing numbers are sub-optimal; on the other hand, if they occur at a specific branch, it indicates the need for further training in that location.

Of course, if you use our payroll management system, there will be no errors in the first place.

Accurate Forecasting

Analyzing performance helps businesses to plan ahead with accuracy and make informed decisions on staffing, especially during periods when staffing levels will need adjusting.

For example, consider a scenario in which a manufacturing business is introducing a new product to their repertoire. Assuming the product is successful and demand grows, decisions will need to be made about how best to tackle the impending changes.

Would it be best to hire new staff or are the existing teams so productive that it would be more effective to offer overtime? What about a combination of both? How would the training costs of new staff factor in? Should new workers be temporary or full-time?

Analytics can provide clear answers to these questions, helping organisations make the best decisions, manage cash flow, and meet their broader objectives.

Managing Change

Much like the previous example, any changes in the business (whether plans for expansion or simply operational changes) can be made in the most cost-effective way possible thanks to analytics. What if a company with several branches was looking to expand the resources of one of them and needed to decide which would be the most optimal?

Analytics would reveal the most profitable decisions based on factors such as the cost of wages in each area, the tax liabilities, and so on. The same could be achieved when looking to merge branches.

These types of insights are vital at the moment due to the ongoing economic disruptions affecting various sectors.

Employee Engagement, Retention, and Compensation Management

Payroll analytics impacts broader HR strategy by helping the creation of contracts that will lead to long-term employment.

It can uncover the correlation between variables such as compensation and performance, or compensation and churn. It can also look at non-monetary factors such as flexible hours, the option to work from home, and other benefits that may cause an employee to stick around.

These insights provide a data-driven basis for avoiding the costly endeavor of losing employees and hiring replacements.

Challenges in Implementing Analytics

Legacy Systems

It’s important to use the right workforce management software if you want to start implementing analytics; no organization that uses outdated systems is going to be able to derive its benefits, and this is primarily due to the vast amount of data needed in order to gain helpful insights.

Old on-premise workforce management systems are far from optimal when it comes to storing such volumes, and they are difficult to integrate with modern analytics software. Thus, in order to start using analytics, migrating to a SaaS model should be a priority.

Data Silos

Data needs to be accessible in a centralized place if any analytics modules are going to be able to get accurate insights. It is not easy to get a single source of truth with data separated into silos. Once again, a cloud based WFM solution is the answer.

How to Get the Most from Workforce Analytics

A few tips for getting the best out of analytics are as follows:

Determine the purpose for analytics – what objectives will it help your organization achieve?
Develop a plan for which KPIs to track based on the objectives defined as per the previous point.
Clarify which types of analysis need to be done – are you looking for correlations between two variables? Are you hoping to uncover trends? Do you require a purely diagnostic approach or will you need to use predictive and prescriptive methods as well?
Collect data automatically using cloud based workforce management software.

Conclusion

Applying analytics to workforce data provides decision support in numerous scenarios. It enables a proactive approach to optimizing the workforce so that organizations can continue to minimize inefficiencies and improve performance. Some examples include accurate employee scheduling forecasts for busy seasons and discovering the connection between compensation and employee turnover.

To get the data in the first place, you need high-performance enterprise workforce management software. Manus Software Europe B.V. is Europe’s favorite provider of state-of-the-art workforce planning software, serving multinational organizations around the world for more than 30 years.

Not only do we cover all your essential WFM and payroll needs, but our workforce management solutions have built-in analytics functionality – and an API that lets you connect to external Business Intelligence tools. To discover how your WFM processes can transform, contact us today to book a demo.

2023 Trends in Workforce Management

Trends / 28 Feb 2023

The latest trends in WFM are heavily influenced by digital transformation and the advancement of technology, with more and more companies leveraging technology to automate manual processes and optimize the workflow.

Developments relating to human focused elements are equally as important this year. Employees are the lifeblood of any organization and more employers are recognizing the importance of their wellbeing, engagement, and opportunities for development.

With that in mind, below are some of the most popular workforce management trends for 2023.

Automation and Artificial Intelligence in Workforce Management

Automation is transforming the way companies manage their workforce, with AI and Machine Learning advancing things further. In fact, market research company IDC have predicted that the global AI market will exceed more than half a trillion USD by 2024.

The best workforce management software today enables various elements of daily operations to be automated, significantly saving on valuable resources, and this is essential in the current economic climate.

While the trajectory in retail spending has improved steadily since the height of the pandemic, October 2022 saw a sudden decline of 1.8% in the euro area and 1.7% in the EU compared to the figures from September. Austria, Croatia and Belgium were the countries hardest hit.

Research by McKinsey shows that 58% of European consumers cite rising costs as the main worry, and 43% are doubtful about economic recovery. In addition, almost 40% have reduced spending on non-essentials and almost 70% have said they will shop less or not at all in the near future.

With revenues at risk, it is vital to use tools that make WFM more efficient and save costs.

Automating Manual Processes

Automation is possible with WFM software and can be used to speed up many manual processes in payroll, attendance tracking, compliance, report generation, and other areas.

This reduces the time and effort required to complete tasks and improve employees’ experience, as common sources of frustration (i.e., repeating the same tasks over and over) are eliminated. It also frees up their time to contribute to higher level objectives.

AI-Powered Chatbots

Chatbots are not only for customer service; their use for internal purposes is on the rise. AI-powered chatbots can be used to answer employee queries, provide feedback, and offer personalized advice, ultimately helping to improve engagement and productivity.

AI in Recruiting

More companies are using AI for parts of the recruitment process. AI-powered recruitment systems can scan through large numbers of resumes quickly and effectively, looking for key words that match the job description and filtering based on criteria such as education requirements.

They can also be set up to alert recruiters when a suitable candidate applies, making it easier to find the right person for the job, and they can automate the assessment and interview processes.

Analytics

Companies are leveraging analytics to gain insights into the workforce and make fast, data-driven decisions in many areas of WFM. By 2029, the big data analytics market is projected to exceed $655 billion, an increase of $455 billion from its value in 2021.

WFM analytics can use attendance and scheduling data to handle labor shortages by reporting on key variables such as overtime or unstaffed shifts in order to optimize shift allocation. This is especially important when managing hourly workers due to the high churn rate among this population.

A recent survey revealed that one third of European employees are planning to quit their jobs in the near future, and since staff turnover in retail has historically been high, this is cause for concern. Affected companies may therefore need to rely on WFM tools to optimize staff allocation (and automation to help make up for the vacant roles).

Below are some other examples of the use of analytics.

Identifying Trends

Wide-scale trends become visible thanks to analytics, such as patterns in employee sickness, as well as which skills are in demand and which roles need to be filled. There are many ways to use these insight, including the optimization of employee scheduling and resource allocation.

Predictive Analytics

Analytics can predict all manner of things based on historical data, helping with practices such as scheduling and scenario planning. Even data about employees’ behavior, gestures and emotions is used to make predictions about their future actions.

People Analytics

The area of people analytics includes everything from performance management to the predictive example mentioned above. It assists with human capital development and reduces the risk of churn, so it’s no surprise that 70% of executives have stated that it’s a top priority.

As beneficial as these technologies can be, there’s likely to be more red tape involved as regulations are introduced on ethical grounds. For example, a new law was introduced in New York City that requires organizations to have annual bias audits, as well as disclose their hiring metrics publicly. Time will tell as to what other regions will be affected.

Prioritizing Wellbeing and Employee Engagement

Organizations are more aware than ever about the importance of wellbeing and how it impacts productivity. We have already seen big changes in this area throughout the pandemic, and this trend is only going to grow.

In one survey, 84% of respondents stated that at least one workplace factor had a negative impact on their mental health, and 81% said that in future, they would look for workplaces that support mental health. Organizations must therefore meet this demand.

As mentioned, technology helps by providing personalized feedback and promoting collaboration. It also helps to automate the performance review process, making it easier for employees to get the feedback they need. Below are some more tactics we can expect to increase over the coming year.

Flexibility

There is a lot already being done in this respect. Promoting work-life balance is vital since employees expect to be treated like humans rather than machines. That’s why flexible working hours remain popular, allowing employees to manage their work and personal commitments more effectively – something that any parent needs.

Microsoft recently introduced a policy of ‘unlimited’ time off for its salaried workers in the US, where employees no longer have to officially record vacation time. They are also offering additional leave for sickness, mental health, and jury duty.

Policies like this communicate to employees that they are trusted, and Microsoft will likely reap the benefits.

Workforce management solutions make it much easier to adapt to these wide-scale changes. Our workforce software supports flexible hours and distributed teams.

Addressing HR Burnout

Due to all the pressure that HR staff have undergone throughout the turbulent times of the pandemic, burnout and exhaustion is now extremely common. According to SHRM, 42% of HR teams are struggling as a result of excessive responsibilities; it appears that while HR staff have been looking after everyone else, their own wellbeing has been neglected.

Organizations will be seeking to address this now that the global situation has stabilized. SHRM also reported that Darcy Gruttadaro, director of the Center for Workplace Mental Health, stated that 70% of the responsibility for managing burnout lies with the organization and not the individual.

Proactive Rest

Proactive rest involves taking breaks throughout the day to maintain productivity, morale, and mental well-being. Some employees choose to spend that time on stretching, in meditation, or simply talking a walk. Its purpose is to re-energize them, boosting their focus and productivity throughout the day.

Gartner state that for rest to be ‘proactive’, it must be available, meaning that there are a broad range of options for rest. It must also be accessible, meaning that employees are encouraged to make the most of it without guilt; and finally, it must be appropriate i.e., it must meet individual needs.

Gartner reported that when rest is ‘available, accessible, and effective’, employee performance increases by 26%.

Improved Learning and Development Opportunities

Naturally, engagement and wellbeing go hand in hand. Learning and Development is therefore becoming a priority area. Employees need to be given opportunities to learn and develop their skills and if they do not have those opportunities, they will look elsewhere.

Various sources state that investment in L&D is increasing in large organizations, but concerns about the effectiveness of training persist.

Recruiting and Retention Trends

As mentioned, technology is increasingly used to streamline the recruitment process and more investment is going into L&D. What other trends are emerging in this area?

Skills Based Hiring

First of all, organizations are moving away from looking at qualifications as a top priority, with skills based hiring increasing instead. The individual’s potential, skills and values are becoming major factors that employers look for, and therefore, organizations are looking to hire employees from non-traditional backgrounds more frequently.

A UK-based analysis has shown that pay differences between employees with a bachelor’s degree and those without are minimal in many cases, and there are many roles in which individuals without a degree can earn equal to or more than those who have one. An added benefit of this approach is that it provides more opportunities to those from disadvantaged backgrounds, so that they may be judged based on merit.

Reallocating Existing Employees

Given the recession, having the option to reallocate employees to other tasks helps optimize the existing workforce. Of course, this is cheaper than hiring new employees to fill the gap, but it also prevents them from feeling stagnant in their roles, thus boosting retention.

Using ESG Reporting to Attract Candidates

Just as organizations demonstrate their values for marketing purposes in order to connect with their customer base, the same is happening when seeking talent. Forbes has suggested that businesses will start using environmental, social, and governance reporting as a tool to attract talent whose values align with that of the company.

Cloud Based Workforce Management Tools

To best manage HR processes, a workforce management solution needs to be cloud based. There are many benefits to such systems, which is why the market is due to grow over the coming year. In fact, Gartner predicted that in 2023, 99% of new sales of WFM software would be of cloud based solutions. This is partly driven by a ransomware attack that struck a prominent HR company in 2021, compromising the data of millions of employees. The response was to migrate to the cloud due to the risk that legacy systems pose, and many other organizations are following suit.

Conclusion

To summarize, automation technologies including AI and analytics continue to gain traction with both markets projected to grow phenomenally in the years to come. Any tool that can automate repetitive tasks has the potential to greatly reduce costs, while freeing up employees’ time so they can work on more meaningful and creative tasks.

Wellbeing continues to be a top priority and employees now expect organizations to accommodate their needs around mental health and overall wellbeing. HR burnout is a big problem that needs addressing, and proactive rest is one way to help overworked employees move through their days more easily.

Finally, new recruitment trends include the transition to skills based hiring, upskilling employees in order to reallocate them to high priority tasks, and using ESG reporting to attract candidates with shared values.

We are the leading provider of enterprise workforce management software, helping organizations around the world increase employee productivity by having the right people at the right time against the right costs. Contact us today to discover how our cloud based solutions reduce the workload of payroll management, time and attendance tracking, compensation management, labor scheduling, task management, and much more.