How Does Workforce Optimization Impact Productivity

The impact of workforce optimization on business productivity

Workforce optimization sounds like common sense; every business knows that the workforce is one of the most crucial resources and optimizing it can only yield benefits.

However, what exactly is workforce optimization, and how does one achieve it? Wheninwork.com defines it as “a business strategy focused on balancing customer satisfaction, service levels, workforce scheduling, operational costs, and other key performance metrics for a business to get the maximum benefit out of the employees working for them at any given time.”

The definition from Technopedia highlights is other aspects; such as more cost-effective operational costs, support from integrated technologies, and processes that work cross-functionally across the organization. The technology and process improvements are the tools and methodology needed for workforce optimization.

Wonolo adds that work optimization focuses on improving employee efficiency by monitoring regular activities and calculating the number of employees that can execute them. 

All three definitions do have a common ground. They mentioned that workforce optimization is a business strategy. If we look at those specific strategies, it may enlighten us how it helps efficiency.

What are common workforce optimization strategies

Monitor Performance and Attendance Matrix

Employees are not made equal. In the same eight-hour shift, some employees perform better than others. It can be due to training, experience, personal drive, morale, natural talent, acquired skill, supervisory management, and a half-dozen other factors. 

So what does account for such discrepancy? Identifying the who, why, when, and how can improve the entire teams’ overall performance by replicating what works and changing what doesn’t. 

Modern performance monitoring tools can store and analyze real-time data for review. Future AI integration can further evolve such an IT system. It is all up to decision-makers, with their well-informed analysis, to make policy changes to improve productivity.

Improve management/employee engagement

Speaking of decision-makers, relying on tools without engaging front-line stakeholders is an antiquated management style. It is a style born out of the “been there, done that” knowledge that experienced managers have that gives them the authority.

The modern workplace implements disruptive changes so fast that a “fluid scenario” is a better way to describe a contemporary workplace. It is the reason why AGILE, Lean, and Kaizen management styles are so popular.

It would be necessary for decision-makers to understand the situation on the field today as it happens and not rely on “how we did it in our day.”

There is one solution:  employee feedback and engagement. Allowing employees to improve processes they work on directly to other stakeholders can improve everyone’s, both management and employees, as a whole.

Automate legacy workflows

One of the most labor-intensive and time-consuming parts of businesses is repetitive bureaucratic processes. Companies still implement them because they satisfy the need for accountability, compliance, and diligent record-keeping.

Using modern technology to automate such menial or clerical tasks allows employees to focus on other essential functions of the business, such as customer service and project delivery.

Looking at the core strategies to implement workflow optimization, it seems we have found the answer how it does impact productivity. All of the above definitions are accurate if incomplete. They all have pieces of a big puzzle.

Modern managers are at an impasse. Modern culture is asking for more employee rights, benefits, and compensation. On the other hand, competition is tougher, faster, and at a bigger stage. Workforce optimization is the only solution. As employees become more aware of what they bring to the table, they are more willing to offer their services elsewhere. The entrepreneurial spirit is also inspiring talented individuals to spread their own wings.

If a company is to survive in the modern environment, it has to maximize talent to save costs while increasing efficiency and productivity. Employees and management have to work together with the help of advanced tools to achieve specific and long-term objectives.