Back to all articles

The business case for investing in a good workforce management system

R&R Insights

In the competitive retail industry, continuously improving efficiency and results is of great importance. In addition, costs continue to rise due to hefty salary increases, among other things. Therefore, workforce management also provides great benefits, and in fact, it is simply indispensable for a modern retail company. But what does it cost and what does it deliver?

In this blog post, we write about the business case of investing in a good workforce management system. Because the financial picture always ultimately depends on multiple situations and variables, we describe the business case using examples.

Cost Savings

Efficient workforce management can provide significant cost savings for retail businesses. Through advanced planning and forecasting, companies can accurately predict their staffing needs and plan accordingly. This prevents overstaffing, ensuring that costs are properly aligned with requirements. In addition, reducing administrative tasks, such as manual schedule changes, can reduce errors and further reduce staffing costs.

Improved productivity

Effective workforce management helps improve productivity. By using good WFM package, your organization can optimize scheduling, taking into account factors such as crowds, seasonal fluctuations and changing customer needs. This ensures that you match staffing to actual needs and avoid under- or over-capacity.

Higher employee satisfaction

A well-planned workforce can lead to higher employee satisfaction. Having a streamlined scheduling process that takes into account employees' availability, preferences and involves them in the planning process leads to more satisfied and motivated employees. This reduces employee turnover and promotes loyalty. This in turn has a positive impact on costs and service continuity is improved. In the process, this can also improve the shopping experience for customers.

Insightful reporting and steering information for better decisions

Good workforce management software provides valuable insights through comprehensive reporting and data insights. Consider insights based on revenue, labor costs, productivity and cost hourly rates. By understanding the right data, a good WFM system facilitates making measurably better choices.

Business case: quick payback of investments

Clearly, a well-run WFM process is essential for retail businesses. But what does this look like in financial terms? The investment in WFM depends on several factors, such as the size of your overall organization, the number of stores and links to HR or payroll systems, for example. The same applies to the returns. Consider, among other things, current labor costs, productivity and the time it takes to deal with scheduling and the necessary administration. In other words, the total savings potential.

In addition, workforce management is an iterative process: as an organization, you make certain choices and, based on the results and other relevant insights, you continually make adjustments to continuously improve. In the end, this always pays off and the investment in workforce management pays off more than once:

Conclusion

Investment in workforce management is essential for retail organizations. Good WFM software is simply indispensable. The costs are quickly recouped in practice and in addition there are other benefits that are more difficult to measure, but of great value. With this, the investment in workforce management becomes a positive business case and the investment pays for itself quickly in practice.

What does this look like for your organization? We are happy to think along with you openly and without obligation. From years of relationships with our customers, we have built up a lot of knowledge and experience in many different situations and with many different customers. We like to use this to contribute to the success of your organization.

You may also be interested in this article: best practices for developing a good WFM strategy.

Stef van Dijk
About the author Stef van Dijk

Stef van Dijk has extensive experience in supermarkets and knows the food retail industry inside and out. Stef writes blogs on all relevant issues around workforce management and food retail.

Share this article