Workforce management systems are redefining how businesses manage, monitor, and motivate employees in the digital age. Today’s WFM systems don’t just help you automate and streamline basic HR functions such as time tracking, absence management and travel expenses – they have a full suite of features that can contribute to your organisation’s strategic planning and address the needs of your workforce effectively.
Workforce management (WFM) solutions help businesses organise and deploy their workforce efficiently, monitor performance, gain insights into employee data, enable employee self-services, upskill and reskill employees, manage succession planning, and streamline processes for the entire employee life cycle.
Many businesses around the globe are choosing to migrate to a workforce management solution to address the unique needs of the modern workforce such as managing hybrid work, prioritising workforce data analysis, encouraging employee development and upskilling, and so on.
Optimising your workforce management strategy is the key to achieving business objectives and driving productivity. Read on to learn more about maximising your workforce’s potential with WFM software and addressing the needs that will be most impactful in 2025.
Cloud HCM solutions will see an increase in adoption
Cloud HCM solutions make workforce management easier by automating and standardising daily HR functions such as time and absence management, document management, goal setting and much more. By providing a centralised solution for all employees, including managers and their subordinates, to carry out self-service functions, Cloud HCM eliminates the need for manual intervention and maintaining offline documentation, allowing HR departments to concentrate on the people aspect of workforce management.
Increasingly, companies are adopting Cloud HCM solutions to meet their workforce management needs; the HCM software market grew by 11.4% in 2022 with revenue exceeding $22.4 billion. This trend is likely to continue in 2025, since Cloud HCM streamlines processes and gives businesses real-time access to employee data and performance metrics.
For specialised businesses that want to avoid being burdened with high overhead costs, Cloud HCM bridges technology gaps by providing seamless, plug-and-play solutions that can be customised to meet unique business needs.
Gig-workers and freelancers are on the rise
With increased access to coworking tools and remote-friendly workflows, more professionals are choosing contract work or freelance work over full-time employment. Workers seeking varied and challenging projects, flexible schedules, and the ability to work from anywhere often turn to gig-work.
Businesses that avoid working with freelancers risk missing out on highly specialised talent capable of adding immense value to the business. Today, 3 out of 4 businesses are limited by skill gaps that don’t directly correspond to their service line or industry. Freelancers and contractors can therefore fulfil business needs that may arise occasionally without associated labour costs such as employee insurance, benefits, and PTO.
But managing freelancers can be a challenge without WFM systems to monitor performance, measure output, track time at work, assign tasks and deliver timely payments. Integrating freelancers and contract workers into your system becomes simple with workforce management software.
Employee Experience (EX) is integral in the age of hybrid work
Employees today highly value their experience at work and consider it to be a core motivation to join, stay in or leave an organisation. A staggering 98% of workers want to work remotely at least some of the time.
Soft benefits, such as flexibility, hybrid options and a supportive work culture, boost job satisfaction and employee engagement. However, managing large teams with different working arrangements and monitoring their productivity can be a challenge. Employees and managers alike want simple, easy-to-use tools that allow smooth administration and free up time for productive tasks.
The future of workforce management will focus a lot more on accommodating flexible schedules and encouraging employees to stay connected with the wider team. The WFM solution you choose must also be able to support all devices including tablet and mobile so team members can update their information on the go.
Leverage reporting and analytics for data-driven decision making
Workforce analytics involves collecting data from various sources, including employee performance metrics, engagement surveys, attendance records, performance review data and average employee tenure to draw conclusions about the organisation’s performance and future readiness.
Manual data collection can be a tedious, time-consuming process for HR staff and employees alike. With workforce management systems, a sizeable portion of data collection is automated, providing immediate access to real-time data. Many WFM systems also have built-in reporting functions that can instantly generate a comprehensive breakdown of employee patterns and behaviour.
With regular insights into employee behaviour, HR leaders can assess workforce gaps, forecast future needs, and conduct talent management interventions ahead of time. With data-driven decision making, organisations can avoid human biases and ensure equity for all employees in the organisation.
Know more on the topic
Tailored employee development will drive engagement and impact
Ensuring that employees are constantly updating their skills is essential to both the organisation and the employee’s continued growth. With the increasing prevalence of digital working and the rise of AI, employees need to constantly update their skills to continue growing professionally. For organisations, fostering a culture of learning boosts productivity and enriches company loyalty. According to the LinkedIn Workplace Learning Report of 2024, 94% of employees stay longer in companies that invest in their personal development.
However, employees across the organisation have different learning and development needs. For instance, employees in the early stages of their career may be quick to adapt to digital tools but could need additional support with their technical skills. Employees in the later stages of their career may be technically proficient but require assistance with adapting to a digital environment.
Feedback is an integral element of employee development. Without adequate feedback, employees may struggle to course-correct when necessary and feel demotivated if their efforts are not recognised. Workforce management solutions can provide customised frameworks for employees to grow in their career. With centralised portals to receive feedback from managers and curated learning courses suited for their skill level, WFM solutions ensure that employees continue growing throughout their lifecycle in the organisation.
Strategic outsourcing will fuel business growth while keeping costs low
In today’s world, companies must compete in the global marketplace to succeed. Although outsourcing was once seen as only a cost-cutting measure, companies today must blend in-house expertise with specialised outsourced skills and resources to focus on delivering innovative products and services to their customer base.
A leaner workforce is more agile and can dynamically adapt to market demands by leaning on external expertise while keeping internal teams focussed on core business objectives. By choosing global providers for workforce management needs, organisations can ensure smooth administration without expensive overhead costs. In 2023, the global Business Process Outsourcing (BPO) market size was $280.64 billion and is projected to grow by 9.4% every year.
Workforce management solutions pave the way for transforming your workforce strategy and staying future ready. At Zalaris, we provide expert consulting and premium HR and payroll software that can elevate your workforce management strategy and support your business’ growth. Talk to an expert today.