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What are the common challenges and pitfalls of implementing WFM tools for labor cost optimization?

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Workforce management (WFM) tools are software solutions that help organizations plan, schedule, and monitor their labor resources. They can help optimize labor costs by aligning staffing levels with demand, reducing overtime and absenteeism, improving productivity and quality, and enhancing employee engagement and retention. However, implementing WFM tools is not a simple or straightforward process. It involves multiple challenges and pitfalls that can affect the success and value of the WFM project. Here are some of the common ones and how to avoid or overcome them.

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Dan Smitley

WFM Expert | ICMI Top 25 | Speaker | Consultant

1 Lack of clear goals and metrics

One of the first steps in implementing WFM tools is to define the objectives and expected outcomes of the project. What are the specific problems or opportunities that the WFM tools will address? How will they improve the current situation and performance? How will they align with the organizational strategy and culture? How will they be measured and evaluated? Without clear and realistic goals and metrics, the WFM project can lose focus, direction, and accountability. It can also create confusion and resistance among the stakeholders and users. To avoid this pitfall, it is essential to establish a clear vision and scope for the WFM project, communicate it effectively to all the involved parties, and monitor and review the progress and results regularly.

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2 Inadequate data quality and integration

Another key factor in implementing WFM tools is the quality and integration of the data that feeds into them. WFM tools rely on accurate and timely data from various sources, such as payroll, HR, operations, sales, and customer service. If the data is incomplete, inconsistent, outdated, or inaccessible, the WFM tools will not function properly or deliver reliable insights. They may also create errors and discrepancies that can undermine the trust and confidence in the WFM system. To avoid this pitfall, it is important to conduct a thorough data audit and cleansing before implementing WFM tools, ensure that the data sources are compatible and integrated, and establish data governance and security protocols.

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Dan Smitley

WFM Expert | ICMI Top 25 | Speaker | Consultant
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There are also a variety of 3rd party companies that can provide custom integration for the data sources into most WFM tools. It's also important to consider just what data is a necessity for the platform vs. just nice to have. Does your WFM system have to pull HRIS data into it or can it simply push back to HRIS? Can that push be a manual job that happens monthly? If so, then maybe an integration isn't necessary.

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3 Insufficient user adoption and training

Another common challenge in implementing WFM tools is the user adoption and training. WFM tools can introduce significant changes to the way people work, such as new processes, roles, responsibilities, and expectations. They can also require new skills, knowledge, and behaviors from the users, such as data analysis, problem-solving, and collaboration. If the users are not properly prepared, informed, and supported, they may resist or reject the WFM tools, or use them incorrectly or inefficiently. This can reduce the benefits and value of the WFM project, and create frustration and dissatisfaction among the users. To avoid this pitfall, it is essential to involve the users from the early stages of the WFM project, understand their needs and preferences, provide adequate and ongoing training and coaching, and solicit and address their feedback and concerns.

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Dan Smitley

WFM Expert | ICMI Top 25 | Speaker | Consultant
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It's also critical to explain and show them how the new tool helps them. If you introduce something that only benefits the organization it is going to get very low adoption rates. However, when you show your employees that it helps them control their schedules, gives them the ability to self-select schedule adjustments, submit PTO, and call out through the app then you'll get greater buy-in.

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4 Unrealistic expectations and timelines

Another potential pitfall in implementing WFM tools is setting unrealistic expectations and timelines. WFM tools are not magic bullets that can solve all the labor cost issues overnight. They are complex and dynamic systems that require careful planning, testing, and adjusting. They also depend on various external and internal factors, such as market conditions, customer demand, employee availability, and organizational culture. If the expectations and timelines are too high or too low, they can create pressure, stress, and disappointment among the project team and the stakeholders. They can also lead to poor decisions, shortcuts, or compromises that can compromise the quality and sustainability of the WFM project. To avoid this pitfall, it is important to set realistic and flexible expectations and timelines, based on the scope, resources, and risks of the WFM project, communicate them clearly and frequently, and manage them proactively and adaptively.

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5 Lack of continuous improvement and innovation

Another challenge in implementing WFM tools is maintaining continuous improvement and innovation. WFM tools are not static or one-time solutions. They are evolving and adaptable systems that need to be updated and optimized regularly. They also need to be aligned with the changing needs and expectations of the organization, the customers, and the employees. If the WFM project is treated as a done deal or a fixed formula, it can lose its relevance, effectiveness, and value. It can also miss out on new opportunities, best practices, or technologies that can enhance the WFM performance. To avoid this pitfall, it is important to establish a culture of continuous improvement and innovation for the WFM project, monitor and evaluate the WFM outcomes and impacts, identify and implement improvements and innovations, and celebrate and reward the WFM achievements.

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Dan Smitley

WFM Expert | ICMI Top 25 | Speaker | Consultant
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To help with continuous improvement of the tool, make sure you are partnering with a vendor that doesn't forget about you after implementation. Too often new features are introduced into a WFM tool and the end-users have no clue because the vendor partner has gone dark. When looking for a WFM software consider the bells and whistles that come with the platform, but also make sure you're working with a company that will provide continuous collaboration (not just support). When the partner is invested in your success it's easier to continually improve your WFM tool.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the common challenges and pitfalls of implementing WFM tools for labor cost optimization?

1

2

3

4

5

6

1 Lack of clear goals and metrics

2 Inadequate data quality and integration

3 Insufficient user adoption and training

4 Unrealistic expectations and timelines

5 Lack of continuous improvement and innovation

6 Here’s what else to consider

Workforce Management

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What are the common challenges and pitfalls of implementing WFM tools for labor cost optimization?

1

2

3

4

5

6

1 Lack of clear goals and metrics

2 Inadequate data quality and integration

3 Insufficient user adoption and training

4 Unrealistic expectations and timelines

5 Lack of continuous improvement and innovation

6 Here’s what else to consider

Workforce Management

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