5 Ways to Reduce Costs using a WFM solution

October 13, 2015

Written by: Erica Niesse

The world of Workforce Management helps companies save money and mitigate risk. Time and Attendance rules and regulations are always changing, which makes it a challenge for businesses to manage on an everyday basis. Here are five ways that a Workforce Management (WFM) solution can help you save time, money and be compliant.

1. Complying with Federal and State Laws

With a Workforce Management Solution, companies are able to adhere to Federal and State laws, which helps them minimize liability and decrease the potential for litigation. WFM solutions offer a real-time data entry and reporting mechanism, with the ability to evaluate employees’ time punches and pay them as per pay polices established by the State or City. By using a WFM system and paying per punch (real time clocking and reporting), companies can correctly pay their employees based on these state and federal regulations. Also by having real time reporting, Managers can see when their employees are getting close to receiving overtime, and regulate their schedules accordingly.

Examples of Federal and State regulations:

• Federal- Fair Labor Standards Act (FLSA) – Employee must receive OT (at one and one-half times their regular rate of pay) for hours worked in excess of 40 hours
• State- California Overtime Rules- Overtime is any hours worked over 8 hours in a day or 40 hours in a week. Any hours worked on the 7th consecutive day also should receive time at one and one-half times their regular rate
• State- California Double-time Rules- Double the employee’s regular rate of pay for all hours worked in excess of 12 hours on any worked day; and any hours on the 7th consecutive day worked in excess of 8 hours.

2. Forecasting and Scheduling

When you are managing a group of employees, it can be difficult to decide where employees are most needed or how shifts need to be staffed. Scheduling incorrectly can lead to overstaffing, noncompliance, and large amounts of overtime costs. Forecasting within the WFM module allows companies the ability to eliminate manually “guessing” schedule staffing based on historical trends, sales, performance, and productivity.

3. Increase Administrative Productivity

Administrators can spend hours if not days trying to reconcile employees’ time and verifying that payroll is accurate. This time spent can be reduced dramatically by using a WFS solution. Managers can review their employees’ time quickly and easily by viewing timesheets, reviewing custom reports on encompassing timesheet data, reviewing exceptions (some listed below), and processing payroll with just a few quick clicks.

Some exceptions companies can create that will assist Managers when processing payroll are as follows:
• Missing in/out swipes on a clock
• Employee working more hours than what was scheduled
• Employee approaching overtime

4. Real Time Visibility into your Workforce

It is up to the Managers and Payroll Administrators to verify that their employees are working the correct job, at the right place and at the right time. This is a great responsibility, but this can be achieved through a WFM tool that allows managers the ability to see exactly where their employees are working and the exact time they worked each day. This gives Managers the ability to know if employees are working at the wrong location as well as if they are coming in late, leaving early, or not coming to work at all. It is possible that some employees will work beyond their schedule shift. WFM solutions provide a way for Managers to monitor when employees are accumulating overtime or getting close to collecting overtime. Overtime costs can add up for companies quickly. This is a huge savings if a company can monitor this adequately.

5. Increase Productivity

After the successful implementation of a WFM solution, companies will start to see the productivity of their employees Managers and HR staff greatly increase. This means less hours doing administrative tasks, fewer errors to mitigate, streamlined processes, decreased operating costs and fewer lawsuits. Let your employees get back to what they do best and let a WFM solution do the work!

HRchitect has full knowledge of the various vendors offering Workforce Management solutions and can assist with the evaluation of a new or replacement system, as well as how a Workforce Management system fits in with the rest of your Human Capital Management (HCM) strategy. If you have an existing system that may not be working at peak efficiency, HRchitect can help with the optimization of a current solution as well as ongoing support.