The term “work smarter, not harder” captures the essence of workforce optimization. As we move into an era where the expectations of customer satisfaction, service delivery, and excellence rise, how does the workforce respond to this need? You can’t always hire more employees because this would only increase your operational costs. In fact, what you should be looking for is always to increase productivity with the same workforce. That’s where workforce optimization comes in.
As remote and hybrid working is becoming more common, organizations are facing challenges to decide on the best operating model and system to optimize productivity while reducing burnout. Workforce optimization helps organizations not only operate efficiently but also to provide excellent customer service.
Workforce optimization (WFO) is a set of strategies and practices that aim to improve employee and organizational efficiency and decrease operational costs through using data. The overall goal is to achieve organizational success. WFO touches every aspect of the organization, from marketing to finance. The objective is to streamline the processes between every department and employee to maximize results. For example, in Formula One (F1), all teams have pretty much the same setup and cars. The teams that usually come on top are the ones that are able to optimize all the teams, cars, drivers, mechanics, engineers, and departments to win.
When fully implemented, WFO reduces costs, improves operational efficiency, increases productivity, maximizes technology investments, improves customer services, enables process automation, reduces error, and provides deep dive insights into every aspect of an organization.
Contact or call centers and retail, but also the manufacturing logistics sector, extensively use WFO. However, it has also gained popularity and usefulness in other industries and across all roles, irrespective of the type of work.
Data analysis is a critical component of WFO, and some of the data collected include:
- Net promoter score (NPS)
- Operational costs
- Customer satisfaction scores
- Employee performance data
- Employee work schedules.
These are massive scores of data collected and analyzed, which is why technology plays a crucial role in workforce optimization. Technology and WFO software combine analytics, quality management, call recording, coaching, speech analytics, text analytics, surveying, and feedback to optimize workforce processes.
Workforce optimization (WFO) is a set of strategies and practices that aim to improve employee and organizational efficiency and decrease operational costs through using data. The overall goal is to achieve organizational success. WFO touches every aspect of the organization, from marketing to finance. The objective is to streamline the processes between every department and employee to maximize results. The teams that usually come on top are the ones that are able to optimize all the teams, cars, drivers, mechanics, engineers, and departments to win.
When fully implemented, WFO reduces costs, improves operational efficiency, increases productivity, maximizes technology investments, improves customer services, enables process automation, reduces error, and provides deep dive insights into every aspect of an organization.
Data analysis is a critical component of WFO, and some of the data collected include:
- Net promoter score (NPS)
- Operational costs
- Customer satisfaction scores
- Employee performance data
- Employee work schedules.
These are massive scores of data collected and analyzed, which is why technology plays a crucial role in workforce optimization. Technology and WFO software combine analytics, quality management, call recording, coaching, speech analytics, text analytics, surveying, and feedback to optimize workforce processes.
Scheduling
This is software that tracks attendance, performance data, and other metrics to put together an employee schedule. Not only are you able to manage overtime and burnout, but you also analyze if you need to actually hire additional staff. This is closely linked to temp workers as well, as the workflow can determine workload. For example, during peak periods such as Christmas, when sales are high, you may need to deploy a new workforce system, hire temp staff or hire new employees, depending on various factors. This is an area of concern for many supplies chain, warehouse, and retail organizations.
Time tracking
Time tracking or attendance software allows you to understand what’s going on at all times. It answers questions such as whether employees are checking in late or early. Or whether there are ‘false clock-ins’ – employees clocking in for their friends. But it is not a punitive measure. Rather, it allows an organization to look at scheduling and ensure they are covered for all times, across all geographies, business hours, peak hours, and public holidays/weekends.
Performance management
WFO is often also used for performance management to optimize employee performance and ensure they are best positioned to perform well at their jobs. Using a task tracking platform such as Asana and Trello is often a valuable tool when tracking and aiding performance. These tools allow employees to shift through the ‘noise’ and work on what is an important and high priority. On an individual level, it helps manage tasks. Organizationally, it helps shift work in the right and most optimal direction.
Benefits of workforce optimization
Increased efficiency and productivity – The right number of employees at all times. Organizations are able to have a complete picture of employee attendance and overall time. Thus, they can manage customer demands effectively. During peak seasons, WFO enables organizations to understand if they need to hire temp staff or introduce technology that could help them deal with the new work demand, for example.
Lower costs and increased savings – You can avoid overstaffing but also understaffing where you would lose money on bad customer service. Not only does it lower costs, but it also creates opportunities for cross-selling and up-selling. WFO that introduces automation into the business provides real-time guidance and actionable insights for revenue opportunities.
Improved customer service and retention – Customers get help, and their queries are resolved quickly and efficiently. That makes for a good customer experience. WFO helps you analyze communication with customers, understand the root causes of customer behavior, and implement strategies to retain customers. WFO software allows organizations to gain deeper insights into their customer’s habits and their ability to service their needs. It enables an organization to respond to customer complaints faster, act faster and thus improve customer satisfaction. A happy customer is most likely a returning customer.
New opportunities – WFO creates internal career movement as new opportunities and products are developed. It allows employees to perform at their optimal level, therefore increasing the likelihood of vertical or horizontal movement within the organization. As employee satisfaction increases, so does customer satisfaction.