Workforce Management (WFM): Definition, Challenges and Best Practices

What is Workforce Management?

The Workforce Management (WFM), or workforce management, refers to all the processes, tools and methods that make it possible to optimize the organization of a company's employees. The objective is simple: to place the right resource, at the right time, in the right place. All while taking into account the skills, legal constraints, operational needs and expectations of employees.

In other words, WFM aims to balance the needs of the company (productivity, costs, quality of service) with those of the workforce (equity, flexibility, working conditions).

Workforce — definition

The term workforce refers to all employees in an organization: permanent employees, temporary workers, freelancers, freelancers or subcontractors. La Workforce therefore includes all the human resources mobilized to achieve the strategic goals of the company.

An evolving concept: from industry to AI

Historically, workforce management emerged with the need to manage working time in industry and retail. The schedules were then managed manually or on spreadsheets.

With the rise of computing, WFM's first software automated schedule planning and time tracking. Today, the discipline has evolved a lot:

• Remote work and hybrid models are forcing a rethink of workforce management.
• The cloud and mobility allow managers and employees alike to access schedules in real time, anywhere.
• Artificial intelligence provides advanced forecasting and multi-constrained optimization capabilities.

Workforce management: why is it key?

Workforce management is at the heart of operational performance. Well managed, it allows you to:

• Improving productivity through the optimal allocation of resources.
• Reduce the costs associated with overtime, understaffed, or overstaffed.
• Ensure compliance with labor regulations (rest time, legal working hours, collective agreements).
• Increase employee satisfaction, by offering them more visibility and flexibility in their organization.

Effective workforce management therefore becomes a competitive advantage, especially in highly competitive sectors.

Workforce manager: a key role

The role of workforce manager or workforce integration manager is strategic in complex organizations. Its missions include:

• Coordinate the integration of new WFM tools into existing processes.
• Make the link between business, HR and IT teams to ensure smooth adoption.
• Guarantee the consistency of workforce data from multiple systems (HRIS, payroll, CRM, business tools).
• Support change for managers and employees.

This role requires both analytical skills, a detailed knowledge of the company's jobs and a strong capacity to manage change.

The components of a Workforce Management software

An efficient WFM system is generally based on several functional building blocks:

1. Forecast (forecasting): forecasting of workload (e.g. incoming calls in a contact center, seasonal peaks in retail).
2. Scheduling (scheduling): creation of schedules taking into account operational needs and legal constraints.
3. Real-time management: workforce adjustment in the face of unforeseen events (absences, delays, fluctuations in demand).
4. Monitoring and reporting: analysis of performance, costs and employee satisfaction.
5. Legal compliance and payroll: compliance with labor law and integration with HR/payroll systems.

👉 Discover all the features of M-Work Planner — workforce management software.

Workforce Management Challenges

While WFM brings many advantages, it can also create challenges:

• Resistance to change: employees who are used to manual and fixed schedules may fear losing control.
• Technical complexity: integration with existing systems (HRIS, ERP, business tools) requires real project management.
• International management: in multinational groups, legal rules vary greatly from one country to another.
• Imperfect forecasts: poor forecasting can generate either expensive overstaffing or understaffing that is harmful to the quality of service.

WFM use cases

WFM is transversal and applies in many sectors:

• Contact centers : adapt the shifts according to the volume of planned calls.
• Retail and e-commerce: manage peaks of activity during sales or end of year holidays.
• Tourism and travel: anticipate seasonal periods and adapt the activity accordingly.
• Banking and insurance : balancing the load between physical agencies and online services.
• Logistics and industry: plan rotations taking into account safety standards.
• Health: ensure the continuity of care with an equitable distribution of on-call and on-call staff.

WFM and employee experience

Good workforce management is not limited to operational efficiency. It has a direct impact on:

• Fairness: by guaranteeing transparent and balanced schedules.
• Flexibility: by allowing employees to better reconcile professional and personal life, and to organize themselves between them (example: exchange grant).
• Motivation: by giving visibility and reducing the stress associated with unpredictability.
• Employer attractiveness: a more flexible organization attracts more talent.

Technologies and innovations

WFM's modern solutions now include:

• Artificial intelligence and machine learning to refine the forecasts.
• Mobile applications that allow employees to consult or exchange their schedules.
• Native integrations with Outlook, Teams or Slack to streamline communication.
• Analytical dashboards to give managers a clear vision of employee performance and satisfaction.

WFM: what are the benefits for the company?

Adopting a workforce management solution allows you to:

• Reduce operational costs while maintaining a high level of service.
• Strengthen the employee experience through fairer and more flexible schedule management.
• Support growth by making the organization more agile in the face of market changes.
• Improve the quality of customer service through better team availability.

Conclusion

Workforce management (WFM) is now a necessity to remain competitive and attractive. By combining artificial intelligence and human support, companies now have the opportunity to transform their WFM, in order to get a head start by having the right people, at the right time, in the right place.

Workforce Management FAQs

What is WFM in business?

WFM brings together practices and tools for planning, managing and optimizing the use of employees in an organization.

What is the difference between workforce and staff?

La Workforce refers to all the workers mobilized by the company, while the Staff refers more specifically to internal employees.

Why use Workforce Management software?

WFM software automates planning, improves legal compliance, and provides better visibility for managers and employees alike.

Who uses WFM?

WFM is widely used in labour-intensive sectors such as contact centers, banking, insurance, logistics, distribution, or healthcare.

What are the best known workforce management tools?

There are American solutions such as NICE, Genesys, Verint, but also innovative players such as M-Work Planner (100% French) who combine simplicity and native integrations.

What is the difference between WFM and SIRH (HRIS)?

The HRIS manages HR administration (contracts, payroll, leave), while the WFM focuses on operational planning and the optimization of the workforce on a daily basis.

How much does WFM software cost?

Prices vary according to the number of employees, functionalities and deployment mode (cloud or on-premise). Most solutions work on a monthly or annual subscription basis.