WFM VS HCM – Advantages and Challenges
Before going into details it is important to point out: workforce measurement depends largely, if not almost entirely, on a good management system. Therefore, knowing how to target the needs of your workers is key to maintain quality standards within a company and increasing business productivity.
The Workforce Management (WFM) concept is a reality within large institutions, contributing to effective team management, through the forecasting and automation of the entire work process. On the other hand, it becomes necessary to include Human Resources in this process, pointing to Human Capital Management, known as HCM as an opportunity to boost corporate value. But, after all, what distinguishes WFM from HCM?
WFM is a team management tool that integrates different processes used within a company to optimize the productivity of its workers. It’s a software system that allows direct supervisors to make an effective forecast of working needs and respective management of workers’ schedules to guarantee the services operationality.
On the other hand, HCM redirects the workforce – through the Human Resources departments – to recruitment, training, compensation, and talent and working management through a strategic investment in human capital. Employee management tasks are thus treated as a corporate asset, to boost the company’s commitment.
Who is it intended for? WFM thus becomes an essential tool for companies whose activity involves tasks defined on an hourly basis and which, for this purpose, depending on dynamic and rotating shifts. The WFM management tool is suitable for direct supervisors in the most varied sectors of activity, from health to retail, to banking, distribution, manufacturing and transport services. It is worth clarifying that through a WFM solution it is possible to adjust the functionalities of the system to the needs of each institution, allowing team managers to effectively and quickly manage the number of active workers and their schedules, shifts and absences. While HCM works as a complement for Human Resources departments in the development of strategies for the growth and retention of human capital. Therefore, HR leaders have a set of tools that can maximize the value of their workforce, from smart, socially-oriented recruiting and customized retention practices to highly optimized compensation.
That said companies need to understand: what are the advantages of WFM and HCM? A WFM tool enables performance monitoring; simulated absenteeism management scenarios; improved efficiency in payment automation; effective vacation and leave planning; greater employee engagement and improved performance; and reduced operating costs. Meanwhile, an HCM system enables: the delivery of HR services; accelerating hiring processes; attracting and retaining talent; setting goals for performance; developing skills; building a performance culture; and accelerating payment processes.
In recent years we have witnessed rapid market expansion and significant growth in acquiring workforce management software. And so it is natural to ask: Does it make sense to use a WFM or an HCM tool? If you want to monitor and improve workforce effectiveness and efficiency you should go for a WFM solution. If you want to boost your company’s talent and human capital, integrate an HCM extension into your WFM solution. Confused? We explain: an HCM system is directed towards HR sectors, not allowing direct intermediation with employees. Therefore, there is an option: the integration of an HCM system into a Workforce Management tool. As an example, SISQUAL WFM is a complete WFM solution, which allows the aggregation of Integrated Enterprise Management Systems (ERP), such as Oracle, SAP, Primavera, among others.
Do you still doubt the operationality of a WFM system? In the international market, WFM is the tool that can deliver the highest Return on Investment (ROI) among the solutions for Human Capital, as a result of the gains acquired in management time, turnover, absenteeism and overtime. On the other hand, in the main international research report on WFM technology, in which SISQUAL has been included since 2008, it is predicted that by 2025, about 75% of large companies will have invested in a WFM solution to better redirect resources and support employees’ experience in the workplace.
We know every company makes the best decisions for the benefit of its business and the well-being of its workers. So join us, invest in a WFM solution and count on us so we can develop your workforce together!