Workforce optimisation: benefits, strategies and best practices

In a competitive business environment, getting the most from your resources is crucial. This includes your most valuable asset: your people. Improving workforce efficiency is about working smarter, not harder. This requires a balanced approach that combines strategic planning, effective tools, and a deep understanding of your team's capabilities and well-being.

What is workforce optimisation?

Workforce optimisation (WFO) is a business strategy focused on balancing operational costs and performance to achieve organisational goals. At its core, WFO is about maximising workforce efficiency and effectiveness. This goes far beyond simply tracking hours worked. It's a comprehensive approach that considers everything from employee attendance, schedules, and engagement to performance management.

The goal is to create an optimised workforce that is both productive and motivated. Essential components of a successful WFO strategy often include:

Workforce planning
Performance analysis
Quality management

Benefits of workforce optimisation

Implementing a robust WFO strategy offers significant advantages that extend across the entire organisation. It's more than just a way to reduce costs; it’s a pathway to building a more resilient, agile, and high-performing team.

Key benefits of workforce optimisation include:

Improved productivity: By aligning tasks with skills and schedules, you can increase productivity without overburdening your team. This focus on employee efficiency helps streamline operations and motivates your staff.
Reduced operational costs: Strategic planning and better resource allocation help minimise unnecessary overtime expenses and other costs associated with inefficient staffing. You can better manage your budget by ensuring you have the right number of people, including full-time employees and temp workers, to meet demand.
Enhanced employee satisfaction: When employees feel their time is valued and their skills are being used effectively, satisfaction rises. Fair schedules, clear performance expectations, and opportunities for development contribute to a positive work environment.
Better customer experience: An optimised workforce is better equipped to meet customer demands. With the right staff on hand, you can improve customer service, reduce wait times and ultimately improve customer satisfaction. This directly impacts key metrics like the net promoter score.

Workforce optimisation strategies & best practices

Developing effective workforce optimisation strategies requires a thoughtful approach that combines technology, process, and people management. It’s not a one-size-fits-all solution but a continuous cycle of planning, execution, and refinement.

Here are some best practices to guide your WFO strategy:

Leverage technology

Use modern tools like workforce optimisation software to automate workflows and gain deeper insights. Systems like SAP workforce management or Oracle workforce management can help manage employee shifts, track performance, and forecast staffing needs. Integrating with your CRM software can also provide valuable customer data to inform your decisions.

Focus on strategic planning

Workforce management starts with a solid plan. Analyse historical data to anticipate future demand, ensuring you have enough employees to handle peak periods without overstaffing during quieter times. This helps you meet service levels consistently.

Utilise AI

Implement artificial intelligence tools to optimise workflows and decision-making processes. AI can analyse large datasets, identify patterns, and provide valuable insights, enabling your business to make data-driven decisions and enhance efficiency across operations.

Prioritise employee training

Invest in ongoing employee training to upskill your team. A well-trained workforce is more adaptable, efficient, and capable of handling important tasks with less supervision, reducing the likelihood of human error.

Streamline processes

Identify and automate repetitive tasks where possible. This frees up your employees to focus on more complex, value-adding activities that require critical thinking and creativity, improving overall business results.

Improve recruitment and onboarding processes

Effective recruitment and onboarding are key to attracting top talent and ensuring new hires succeed from day one. Here’s how to make it happen:

Write clear job descriptions: Clearly outline the role, responsibilities, and required skills to attract the right candidates.
Use targeted recruitment channels: Focus on platforms and networks where your ideal candidates are likely to be.
Create an onboarding program: Introduce new hires to your company culture, values, and processes through a structured onboarding plan.
Provide ongoing support: Assign mentors or buddies to help new employees navigate their roles and build confidence.

How to measure productivity with the right KPIs

Measuring employee productivity accurately is fundamental to any optimisation effort. However, it's crucial to move beyond simple metrics like hours logged. A modern approach uses a variety of performance metrics to build a complete picture of employee performance.

To effectively measure productivity, consider tracking these KPIs:

Task completion rates: Monitor the volume of work completed within specific timeframes. This helps you understand output and identify potential bottlenecks in your internal systems.
Quality of work: Assess the quality of outcomes, not just the quantity. This could involve tracking error rates, rework requests, or customer feedback related to specific tasks or projects.
Efficiency ratios: Compare the resources used (time, cost) to the output generated. This provides actionable insights into how efficiently your team is operating and helps you optimise your workforce.

Using performance data from these areas allows you to see the bigger picture and make informed decisions that drive real improvements without solely focusing on time spent at a desk.

Workforce optimisation vs workforce management: Key differences

These terms are often mentioned together, but they serve different purposes in how organisations plan, support and improve their people. Workforce management focuses on day-to-day coordination, while workforce optimisation looks at long-term performance and capability.

Element	Workforce management	Workforce optimisation
Primary focus	Ensuring the right people are in the right place at the right time.	Improving overall workforce performance and efficiency over time.
Purpose	Day-to-day scheduling, staffing and compliance.	Long-term improvement across productivity, cost efficiency and workforce capability.
Scope	Operational and tactical.	Strategic and analytical.
Time horizon	Short-term: daily, weekly or monthly planning.	Medium to long-term: ongoing improvement cycles.
Data use	Attendance, rosters, leave balances, and basic demand forecasting	Advanced analytics, performance data, trends, and predictive modelling.
Activities	Rostering, shift planning, leave management, monitoring hours and compliance.	Process improvement, workload modelling, skills optimisation, scenario planning.
Activities	Rostering, shift planning, leave management, monitoring hours and compliance.	Process improvement, workload modelling, skills optimisation, scenario planning.
Outcome	Reliable staffing and operational continuity.	Higher productivity, lower costs, better allocation of skills and capability.
Who leads	Operations managers, team leaders, HR administrators.	Senior leaders, workforce planning teams, HR strategists.
Business value	Reduces scheduling errors and ensures coverage.	Maximises overall workforce performance and aligns talent with organisational priorities.

Ethical monitoring and staff trust

The rise of technology has made employee productivity monitoring easier than ever, but it comes with significant responsibilities. To maintain a healthy and productive workplace culture, monitoring staff performance must be approached ethically and transparently. The goal is to foster trust, not create a culture of surveillance.

To ensure your approach is ethical:

Be transparent: Clearly communicate what you are monitoring and why. Explain how the data will be used to support both individual development and broader business goals, such as improving operational efficiency. Staff are more likely to accept monitoring when they understand its purpose.
Set reasonable expectations: Use the data to establish fair and achievable performance benchmarks. The insights should be used to support employees and offer coaching, not to punish them for falling short of unrealistic targets.
Focus on outcomes, not keystrokes: Emphasise the quality and completion of work rather than micromanaging activity levels. Trust your team to manage their time and focus on the results they deliver. This approach respects their autonomy and professionalism.
Ensure data security: Protect the data you collect and use it only for its intended purpose. Assure your team that their personal information is secure and that monitoring is conducted within legal and ethical boundaries.

When executed effectively, workforce optimisation becomes a powerful driver of success. By combining smart strategies with the right technology and a commitment to ethical management, you can unlock your team's full potential. At Hays, we connect organisations with the talent and expertise needed to build a truly optimised workforce. Contact us today to learn how we can support your business strategy.