Most old-school payroll and HR systems struggle with the complexities of managing staff workforce hourly. Utilizing workforce management systems can help you streamline the process with efficiency. Integrating WFM software into your systems can maximize your ROI in numerous ways.
However, it is difficult to measure the actual value of your workforce management software. And this is why you must understand how to calculate the ROI (return on investment) to provide direction and clarity.
Let’s discuss more about this in the following blog post.
What are the key factors to measure the ROI for workforce management software?
- Businesses invest the cost of workforce management systems along with implementation, training, and ongoing costs. In return, WFM software can help create a more efficient and happier workforce, predict future demand, and increase sales.
- The formula for calculating ROI is (total benefits – total costs) / total costs X 100%. Along with this, you should also account for additional qualitative data to get the accurate value.
- Reports from Nucleus Research show that the leading organizations worldwide achieved an ROI of $12.24 for every dollar spent in workforce management systems with an average period of under 5 months.
How to understand the ROI of your business in workforce management software?
The value of your WFM software solutions is more than just the costs, it is about the returns that it brings to your happiness.
ROI or return on investments helps organizations measure the gain or loss made from an investment relative to its cost.
Regarding cutting-edge workforce management systems, ROI means looking at how much time and money you save over time vs. how much time and money spent to implement the system.
Having a WFM system by your side can help you reduce labor costs by optimizing schedules and predicting demand.
However, calculating the ROI on workforce management software can further help your business improve operational efficiency and overall customer and employee satisfaction rates – more revenue over time.
A. The value proposition of workforce management systems
WFM software solutions can help your business run more efficiently and maximize your resources.
Integrating automated technologies coordinates the availability and skills of your employees for much smoother operations. It results in increased employee engagement and productivity.
Having workforce management systems implemented in your business operations makes your employees feel valued because the tasks they are assigned suit their preferences and abilities – reducing turnover rates and increasing revenues.
WFM systems can further help businesses stay one step further through future predictions based on past data trends – offering a competitive edge.
B. The cost factor in workforce management software
Businesses purchasing workforce management software should consider the costs that come with the implementation and training, along with ongoing costs.
Along with this, onboarding new employees onto the new WFM system and providing technical support will be additional expenses.
To understand whether it is worth investing the costs in WFM software, you should weigh it against potential cost savings.
How to calculate the ROI for workforce management systems of your business?
To calculate the ROI of your WFM software solutions, you should start by adding up all of the costs, including the implementation, acquisition, and training expenses.
Next, you must measure the value of the benefits of the workforce management systems for your business. It can further save your time by automating the procedures and allocating your resources better for increased sales.
The formula for calculating the ROI for workforce management software for your business is the following:
(Total Benefits – Total Costs) / Total Costs X 100%
However, the real value may go beyond this simple equation, as you must consider qualitative benefits like better customer service and happier employees.
Mistakes you must avoid when measuring the ROI of your workforce management software
There are a few mistakes most businesses make when measuring the ROI for their WFM software solutions.
The following are some of them:
- Ensure not to overlook hidden costs like maintenance or training. You should consider all expenses not only just the upfront costs.
- Make sure not to underestimate other benefits that come with integrating workforce management systems, like better employee engagement and improved compliance, which can significantly increase your ROI.
- Never forget that it takes a lot of time to implement the WFM software solutions that can further delay the impact on your anticipated ROI.
Avoiding the above-mentioned pitfalls can help your business to make a more accurate ROI of your workforce management software.
Some of the real-world examples of workforce management systems
The following are some of the real-world examples of businesses solving common challenges using workforce management software:
1. The Book People
Based in the UK, The Book People is a discounted bookseller with a direct sales team of 400+ booksellers.
Challenge:
The Book People find it difficult to generate multi-skill schedules because of their policies to release a new brochure every 3 weeks – spiking call volume.
Solution:
After integrating WFM systems into the WFM cycle and receive benefits like accurate forecasting, cost-effective systems, employee involvement, zero effort updates, and multi-skill scheduling functionality.
2. Eurostar
Headquartered in Ashford, Ken, Eurostar contact center operation with 195+ clients handling over 1.3 million calls per year.
Challenge:
Eurostar faced difficulty when using large numbers of complex spreadsheets limiting the capabilities of the agents to specify their availability or request time-off.
Solution:
Within 2 weeks of implementing WFM software, Eurostar produced more accurate forecasts and improved work-life balance for agents through accurate forecasting.
3. Addison Lee
Based in London, Addison Lee is a premium chauffeur, minicab, and international courier service provider with over 12,000 London corporate account customers handling 300 agents.
Challenges:
Addison Lee handled over 100,000 calls each week, which can significantly vary as per various factors like half-terms and holidays – making operations more complex.
Solutions:
After trying WFM systems, they have been able to formalize their forecasting and scheduling procedures – making resource management more efficient and freeing up staff members for other pivotal tasks.
How can leveraging workforce management systems maximize your ROI?
Leveraging the capabilities of WFM software solutions effectively can give you most of the benefits, including maximizing ROI. Here’s how:
1. Saving time and money
Accurate demand forecasting through WFM software can help you prevent unnecessary expenses on labors while ensuring prompt attention to customers.
2. Better staff utilization
Integrating WFM systems into your business operations results in efficient scheduling, meaning no idle hands or burnouts due to overworking.
3. Elevated employee experience
Automated schedule delivery through WFM software matching employee preferences and business-specific needs leading to happier teams.
Are workforce management systems worth the investment?
To grasp the value of your investment in workforce management systems, you should understand the ROI for their individual use cases.
Expenses come in numerous forms, including implementation, acquisition, training, and ongoing costs. With better insights into these factors, it’d be easier for businesses to make data-driven, informed decisions.
The value WFM software solutions provide to your business is substantial, from optimized resource allocation to increased efficiency – equaling significant money saved – ensuring it’s worth investing in WFM systems.
At a glance
Are you still relying on your manual laborers and human staff members to handle all the mundane operations? Integrating cutting-edge workforce management software solutions into your business operations can enhance overall productivity through automation and robust technologies. We hope this blog post can help you understand everything about this. If you have any further queries on WFM systems, consider checking Brooklyn Computer Systems out.