It is important for a company to have a workforce management (WFM) area since one of its functions is to solve the different problems between people who work with the company. However, many companies do not have staff in charge of this area. That is why they resort to outsourcing this service to optimize their processes. Also, outsourcing this area is especially advisable for small and medium-sized companies that want to reduce costs. Although it is a service that large companies use on many occasions since they want to prioritize their core business.
In this article, you will learn all about workforce management.
- What is workforce management?
- Importance of workforce management
- What are the objectives of the workforce management department?
- Organization of the workforce management area
- Workforce management process
- Workforce management outsourcing
- General considerations.
- How can we help you with the workforce management of your company?
1. What is workforce management?
The WFM meaning is the area of a company that seeks to effectively coordinate the individual efforts of the group of people that make up an organization, in addition to tending to ensure their well-being, in order to achieve the achievement of certain objectives of the area.
For their part, organizations currently expect a workforce manager to be someone capable of making the best use of the people available to them, who represents an inexpensive cost, and who definitively contributes to the achievement of organizational goals and objectives; taking into account that this constitutes the performance or utility that every organization wishes to obtain.
Therefore, WFM (workforce management) is a strategic area for any organization since the optimization of machinery, money, facilities, and HR management systems (WFM systems); everything as a whole makes it possible to achieve the objectives thanks to the contribution of its human talent. In this sense, this human talent is the people who day by day provide the organization with the knowledge, work, creativity, and effort to achieve its objectives.
WFM means the way employers devise a strategy to allocate people and resources and monitor worker attendance. Also, WFM means identifying the priorities of a company and foreseeing the challenges of human talent so that timely measures can be taken to mitigate the negative consequences of these challenges.
2. Importance of workforce management
Labor costs are a function of individual productivity or performance, as well as their compensation. That is why one of the responsibilities of workforce management is to ensure that workers are worth what they are paid and that this payment is what they deserve.
Likewise, the importance of effectively managing human talent in organizations grants the following benefits:
- Increases efficiency, effectiveness, and quality.
- It affects the optimization of technological, material, and financial resources.
- Promotes a suitable organizational climate.
- Improves the quality of life of the members of the organization.
- Increases motivation and consequently productivity and quality.
For its part, the importance of workforce management lies in the fact that societies need organizations as sources of work to satisfy their consumption and maintenance needs. Also, companies and organizations require a workforce for the proper management of all resources and thus satisfy their needs.
3. What are the objectives of the workforce management department?
Workforce management must fully comply with the stages or functions of any administrative process such as planning, organizing, developing, coordinating, and controlling everything related to how to effectively and efficiently manage workforce available to the company. For this, it must have a trained management workforce.
Likewise, these functions allow the HR manager to guarantee the optimal performance of people, motivating them to achieve their individual objectives simultaneously with the organizational objectives of the company.
However, many times people have to go through bad times in the organization due to inappropriate decisions and policies that produce frustration and impatience in the workforce, and despite this; they remain in the company because they have an identity, a sense of belonging, and a high degree of commitment.
In this sense, based on the above, these are some of the main objectives of any workforce management department:
- Achieve the creation, maintenance, and development of a group of people with sufficient knowledge, abilities, skills, competencies, and personal satisfaction to meet the goals and objectives of the organization.
- Create, maintain, and develop organizational conditions that allow the workforce to have a full motivation to achieve their individual objectives and therefore the organizational objectives.
- Have the ideal human talent to develop the necessary efficiency and effectiveness in the company’s production process.
4.1 Workforce management functions
To make an appropriate selection of workforce, workforce management is vital because this is the area with knowledge in this matter that is so important for an organization. Therefore, these are some of the main functions of this area:
- Offset Design: Compensation design is also important as it is about rewards that motivate employees. These are not only the amount of salaries, but also include social benefits, and benefits of the company, among others.
- Staff training: New workers entering a company may be very well trained, but in any business, there are constant updates. Therefore, it is the responsibility of the workforce management area to recognize the shortcomings in order to provide solutions to them, such as personnel training.
Likewise, personnel development does not aim only at the acquisition of new knowledge, but also at the development of personal skills that contribute to improving the capacities of the members of the company, for example: modifying or eliminating bad habits and everything that allows improve productivity.
In this same order of ideas, together with the above, it also involves the monitoring of the personnel that works for the company and the analysis and re-evaluation of strategies for its proper functioning.
4. Organization of the workforce management area
Basically, the Workforce Management Area is made up of seven subsystems that have an intrinsic relationship and whose action is reported to the Directorate, Management, or Human Resources Department.
For its part, in the organizational structure of the organization, this direction, management, or department fulfills a line responsibility because from the president, director or general manager, heads of departments, section, or at the level of supervisors must have basic knowledge of how to manage workforce that they are in charge of.
That is why, at a hierarchical level, workforce management simultaneously exercises shared linear responsibility with the other units.
Likewise, workforce management fulfills the function of staff within the organizational structure. Therefore, for linear responsibility to function effectively, it is necessary that area managers, chiefs, and supervisors receive the appropriate advice and consultancy that this area must offer them, which are generally:
- Personnel standards and procedures,
- Selection and recruitment of personnel, training, and qualification through a WFM full form.
- Analysis and evaluation of positions.
- Issue the recommendations and suggestions that, as an entity that manages the workforce, must influence the moment in which senior management makes decisions that affect the smooth running of the workforce that it has.
5. Workforce management process
The workforce management process has the following procedures:
- Planning: It is the first step of the administrative process. It consists of determining the results that the area intends to achieve.
Likewise, a personnel planning seeks the following:
- Job Description: It is a document that sets out the tasks or attributions that the occupant of a position must perform.
- Job Analysis: It is the profile, requirements, responsibilities, and conditions in which a position must be performed.
- Personnel Rotation: At this stage, it is necessary to point out the strategies to follow when there is a situation in which a worker enters a company and after a short period of time leaves.
- Job Profiles: It is a specific collection method of the characteristics, knowledge, qualities, and skills that a person must have to fill a vacancy.
- Recruitment: Search for the ideal person to fill a vacancy or position using different tools to achieve it.
- Personnel Selection: It is the procedure by which there is an evaluation of the qualities, knowledge, skills, or experience to fill the vacancy that the organization demands.
- Training: Refers to the acquisition of knowledge, tools, skills, and attitudes to interact in the work environment and fulfill the work that the position demands.
- Services and Benefits: Services are defined as activities paid by the organization to provide support of a material or social nature to workers.
In this order of ideas, these are other procedures that are part of the workforce management process:
- Organization: Is the act of arranging and coordinating available resources, that is, material, human, and financial resources.
- Direction: Is the influence of the manager in carrying out plans where he must seek to obtain a positive response.
6. Workforce management outsourcing
More and more companies choose to outsource this area of their business. The companies that offer workforce management services have, among their many responsibilities, the following:
- Analyze the positions that a company requires.
- Recruitment, personnel selection, salary designation, analyzes of performance, training, and assigning the obligations of each worker.
For its part, among the advantages of outsourcing Workforce Management are:
- Cost reduction since it saves on workspace and labor benefits in the area.
- Simplification of administrative processes.
- Have more time to dedicate to the main activity of the business which is the generator of profitability.
7. General considerations
Every company must have a department specialized in workforce management, either internally or through outsourcing. Many companies choose to use outsourcing since this is a complex area that requires the participation of experts.
Therefore, this releases responsibility to the general management of the company, which will be able to dedicate most of the time to the activities that generate money and in turn leave such an important but at the same time so complicated work in expert hands. What you will be able to do are activities related to the main business of the company.
For example, a general manager of a company having a good workforce management area will not have the need to spend their time on activities that do not really directly generate profitability for the organization, such as recruiting personnel, and monitoring their performance, etc.
Here the question arises. What does the workforce do? Well, without a doubt, they are the human resource that makes possible the implementation of all the necessary processes for the best performance of the company in the search for its organizational objectives.
On other hand, the importance of this area for a company lies in the fact that human talent is the main tool of any organization and workforce management has, among other responsibilities, the fact of keeping both motivation and working conditions of employees in good condition.
Of course, this results in an increase in the productivity of the business since by having the employees have better working conditions, they will be able to perform their functions more efficiently, which will have an impact on the increase in the profitability of the organization.
8. How can we help you with the workforce management of your company?
On PEO Middle East we are backed by our deep knowledge and experience to provide your company with a comprehensive staffing solution to evolve your organization. Thanks to our highly trained staff, our company has an excellent reputation in the market.
For its part, our years in the market give us greater support in providing the service. You can count on our company and they form a high-level professional relationship with us. We provide our business services in the following regions:
On the other hand, if you feel that your company needs to receive our services, contact us via email: [email protected]. Likewise, you can call us at +971 43 316 688 and let us know about your requirements or schedule a meeting. Our staff will reply to your request as soon as possible.
If what you want is to have a job opportunity with us, you must send us your CV to thetalentpoint.com. Or to the following email address: [email protected]. Our company has a large number of recruiters who are looking for the best talent for the company. Send us your work information so you can be part of this wonderful team of PEO Middle East.