With Workforce Management as a management tool, decision-makers get a crucial “single version of truth"
In most large companies, productivity and international competitiveness are firmly on the agenda. At the same time, in its latest ”Global C-suite Study”, the IBM Institute for Business Value has established that one of the biggest challenges facing the CFO is to integrate information across the entire organisation in order to obtain a “single version of truth”. In this regard, Workforce Management plays a central and increasingly important role for CFOs and other decision-makers.
Workforce Management – simply
In the old days, Workforce Management was characterised by punch clocks and timesheets for the registration of employee working time so that everyone received the correct wage.
Nowadays, this task is performed by modern, user-friendly real-time technology that ensures that everyone is paid correctly and in the most effective way. At the same time, Workforce Management results in direct savings and helps ensure productivity through insightful planning and continuous adaptation of the right resources, at the right time and across the entire organisation.
The truth about absence and productivity
Even though employee absence has generally been on the decrease in recent years, particularly in Nordic companies, sickness absence is still a problem that hampers productivity for many private and public sector companies.
The daily recording of absence with Workforce Management provides a true glimpse of sickness absence throughout the entire organisation and, at the same time, gives all managers with responsibility for personnel a unique opportunity to prevent and reduce absence in those situations where individual employees or individual departments deviate from the norm.
Indeed, in most cases, the problem with sickness absence is that insight into the various absence rates throughout the organisation as a whole, and the underlying causes, is still too vague and at times, completely unknown to senior management as well as the employees’ immediate line manager.
Naturally, this makes it extremely difficult to get to grips with the challenge, despite the considerable impact on employee satisfaction and, not least, on productivity in relation to optimal planning and staffing and the working time of the company’s service and production machinery.
When setting out simplified prerequisites in relation to wage bills and the number of employees, a quick ROI calculation can show that proactive and action-oriented management that reduces absence through sickness by just one half of a percentage point can help bring about significant improvements in productivity and on the bottom line.
Proactive basis for decision-making for improving OEE
The vast majority of CFOs are familiar with OEE, which is universally defined as the key figures for the utilisation of production machinery. On the whole, the majority of “LEAN” companies strive to achieve the internationally and so-called “world-class” OEE key figure of 85%. You can learn more about Workforce Management, Lean and OEE here.
However, it appears that far too many companies have seriously underutilise their production machinery in the sense that they do not conduct systematic measurement of its utilisation in real-time.
As a management tool, Workforce Management gives you an instant snapshot of the truth about how well production machinery is utilised. CFO's and other relevant decision-makers get a true and operational insight into the extent to which the staffing and processes of the production machinery are optimal in relation to planned and realised:
Naturally, this type of insight is important when it comes to having to make important decisions quickly and act in relation to planning and the optimisation of resources in every aspect of the service and production machinery.