As a small to mid-sized organization, you are the ideal candidate to embrace cloud-based workforce management solutions. They provide an invaluable tool that integrates the key components of your HR function including onboarding, benefits, time and attendance, payroll, scheduling and more. However, your workforce management solutions can also make it easier to measure your workforce KPIs allowing you to become far more cost-effective at managing your team.
Here are the key workforce management KPIs that will help you become more effective at team management.
Business Values Metrics
Business value metrics allow you to study the benefits your company offers stakeholders. You can demonstrate how you can create long-term revenue with your products or services, and generate higher investment returns. When you can show how well you improve the net impact your labor costs have on profitability you help demonstrate the business’ value. However, you can also spot opportunities to reduce staff resources and make other productivity improvements. These measurements allow your company to continue to track the net impact on profitability, so you are constantly looking for inefficiencies while building on proven efficiencies.
Labor Cost Metrics
Labor cost metrics help you become more proficient at having an effective workforce in place. You ensure you cover the needs of the business and your customers while saving money on unnecessary HR hours to address tracking and scheduling. Tracking things such as your Total Compensation Spend Rate, can show you how much you are spending on labor from your total operating cost. You’ll be able to benchmark numbers so you can watch where your spending goes up and down to spot trends and become better at estimating labor costs seasonally. It can also help HR departments improve efficiencies in several areas including:
- Time required for pay
- Rate of pay calculation errors including missed punches
- Correction time required for pay input errors
- Time required to update and create schedules based on changing service levels
- Management and control of overtime
- Timesheet submissions
- Paper tracking
Employees and their managers become more independent with self-serve tools that place less demand on your team. As a result, you can focus your efforts on more important areas such as employee development, onboarding, and training.
Workforce Productivity Metrics
In hand with your labor cost metrics, your productivity metrics allow you to track and measure team efficiencies. When you understand strengths and weaknesses in task performance you can better manage and improve that performance. But it goes beyond that. You can also determine where your workforce management tools can help you:
- Reduce how long it takes to compile management reports
- Make it easier to track unplanned absences and plan for time off requests
- Track level of satisfaction and engagement for employees to help improve retention and reduce churn
- Improve your onboarding process
When you understand your workforce productivity metrics, you find opportunities to improve productivity, while also improving employee satisfaction.
Compliance Risk Metrics
Compliance metrics help you understand how well your compliance programs are working while also tracking risks and controls based on your industry’s standards. You can identify risks and discover causes of non-compliance by spotting weaknesses so you can improve company resources. It also works from an HR standpoint as it allows you to address compliance from day one at the onboarding stage. Proper training in hand with understanding an employee’s hours allows you to avoid issues ranging from too much overtime for an individual to certified payroll requirements. You can keep on top of both current pandemic related issues as well as existing compliance requirements including:
- FMLA compliance
- FLSA compliance
- ACA compliance
You mitigate risk and make it easier for payroll as well. However, it requires moving away from reliance on manual processes or non-compatible software packages. Instead, you need to upgrade how you track employee time and manage payroll, so you are able to meet regulatory compliance demands. This applies across all HR-related tasks because you are placing your team at higher risk of errors while also operating very inefficiently.
Workforce Management Software
The best way to track these metrics, while also improving HR performance and efficiencies is to use workforce management software that integrates all HR functions. You can improve compliance with labor regulations while keeping your business scalable. You can avoid the potential negative impact of failing to track labor costs accurately, while always having access to real-time workforce data to share with managers.
As a result, they can make well-informed decisions to improve productivity. Workforce management software reduces the errors of non-integrated methods, providing a critical tool to help overcome HR and management challenges. You’ll become more effective at using your KPIs to continuously spot opportunities to make productivity, labor, and business value improvements.
About The Author
Ingrid is the Content Marketing Manager at Paypro, managing both inbound and outbound marketing initiatives for the company. She has 15+ years’ of extensive marketing communications experience, leveraging brand awareness and strategic partnerships to increase sales revenue for a diverse group of B2B brands.