Whether you own a small business with a lean team or a multinational corporation, you are working towards the same goal — get as much done as possible while minimizing expenses. Workforce optimization (WFO) is the key to reaching this goal. 

This practice is commonly recognized as a best practice for business in the 21st century, with many business owners first encountering the term when pursuing their degree in business analytics or their MBA. 

Workforce optimization is the process of improving efficiency and limiting costs. By using data to learn more about your company’s current operations, you can create new systems that improve employee productivity and effectiveness. 

How Does Workforce Optimization Function? 

The goal of workforce optimization is to streamline every part of a business, from human resources to finance to sales.

For a business to most effectively streamline its operations, those in charge need to collect data and analyze it, often using software. Some valuable data points include: 

• Costs: The current operational costs of a business are an important factor in optimization. Leaders can assess these costs and find redundant or unnecessary expenses.  
• Performance: Employee performance reviews and staff scheduling information can give a business leader key information about the effectiveness of their current staff and where skills gaps may be occurring.  
• Satisfaction: Customer satisfaction is a key element of a successful business. Workforce optimization’s goal is to improve customer satisfaction. 

Analyzing these data points and making decisions accordingly can lead to many changes. For example, optimization can help you track what times of year you may need to increase your workforce due to customer demand. You may bring in new scheduling software to help employees track their work, stay on task, and work more efficiently. 

WFO vs. WEM

While WFO is focused on managing resources and limiting costs, there is more you can do to improve the efficiency of your workforce. Workforce engagement management (WEM) takes workforce optimization one step further and focuses heavily on employees. 

WEM uses digital tools to help employees through virtual learning, coaching, and opportunities for skills development. WEM strives to show employees they are more than resources to be analyzed and optimized. 

By providing employees with chances to develop their skills and grow professionally, employers can increase employee engagement and job satisfaction while also improving employee efficiency and productivity. 

Benefits of Workforce Optimization

Workforce optimization provides a wide range of benefits for both employees and employers. Businesses can see these benefits in the day-to-day and long-term financial success they may achieve. 

Benefits for Employees

Employees can benefit from workforce optimization in a variety of ways, including: 

• The tools to succeed: Employees who have the tools they need are more likely to be productive and efficient in their tasks. 
• Matching skills: Employees should be placed in departments where their unique skill sets can shine. 
• Manageable goals: Burnt-out employees aren’t productive. When a business is truly trying to optimize, there will be manageable goals for employees to meet. 

In short, when an employer chooses to optimize the workforce, they will make choices that create a better working environment for their employees. 

Benefits for Employers

Employers can also benefit from workforce optimization. These benefits include: 

• Lower costs: Less wasted time and resources means less wasted money. Workforce optimization solutions can lead to lower overhead costs.  
• Customer service improvements: Optimization directly affects customers. From speedy deliveries to quick customer service responses, optimization leads to more satisfied customers. 
• Increased employee productivity: When employees are provided with the tools they need and chances to use their skills, they can become more productive. This means a business is able to do more without hiring more people. 

Optimization is a continual process. However, when a business prioritizes optimization and the best use of resources, there are countless benefits. 

Integrating Workforce Optimization Into Your Business

It is one thing to know what workforce optimization is. It is another thing entirely to integrate workforce optimization solutions into your business. 

By updating processes and policies, sending out communications about updates, and choosing workforce optimization software, you can make the most of your business’s resources and see the benefits of optimization. 

Update Processes and Policies

Workforce management optimization with the help of optimization software will normally result in a long list of updated processes and policies. These updated policies can cover scheduling, customer service, manufacturing, and any other part of your company’s operations. It will be up to human resource managers to analyze this data and more to rework regulations and policies accordingly.

The optimization software will look at your company’s data and provide the information you need to make updates that will help your company in the long term. 

Send Out Communications About Updates

Optimization is often continuous. As you make updates to processes and policies within your company, be sure to send out communications to company leaders and staff. The communications should include: 

• Information about the change being made, such as a detailed outline of the new company policy; 
• The date and time of any training associated with the change; 
• The name and email address for the main point of contact so that employees know who to reach out to with questions and concerns. 

Preemptively sending out information about new policies and processes can save your company’s leaders time and provide your employees with a written summary of the changes being made. 

Choose a Workforce Optimization Software

The process of workforce optimization itself can be optimized through the use of software. If you are interested in purchasing workforce optimization software, consider the following: 

• Cost and value: Workforce optimization software can be costly, so do research into the tools each program offers and the perks you can access. 
• Integration with other programs: Some software will integrate with programs that other departments in your company use. For example, the human resources department can integrate optimization software with tools such as BambooHR or Sage. 
• User interface and ease of use: The last thing you need is to be wasting precious time trying to use an overly complex system. Choosing software with an easy user interface can make the optimization process easier and more efficient. 

Finding the right workforce optimization software takes some research and may be expensive up front, but the optimizations it will facilitate can save your company money.