Even in a niche market like the restaurant industry, there are many ways that workforce management can help streamline restaurant operations. In the end, it can also allow you to achieve restaurant success. In reality, no matter which industry you find yourself in, workforce management guidelines can be the key to longevity and high profits.
In this blog, we will cover everything you need to know from the workforce management definition to tips on how it can save you a ton of money. Sounds good? Without further ado, let's dive right in!
Workforce Management Definition
Workforce management is the process of running a company to reach optimal success and efficiency. In order to do so, the business owner must follow a strict set of processes and guidelines. Without a rule book so to speak, it can be pretty easy to fall off track.
Workforce management can consist of numerous departments, too. Within the restaurant space, it can include talent acquisition, managing the team, and staff development. Effectively planning for the future also requires successful workforce management.
The primary goal of workforce management is to have a sense of alignment and productivity within the workplace. When you take the right steps in such a process, teams are more likely to reach their goals and objectives without stress.
Over time, workforce management can reduce work overload, overhead expenses, and employee turnover. When you can get a hold of all these factors, it becomes easier to maximize profits. Want to learn all about it? See the section below for more insight on the cost-saving abilities of workforce management.
5 Tips for Workforce Management
Workforce management is a much needed component to successfully operate a business. Whether you have an entrepreneur mindset or currently operate a business, such resources are vital. They allow teams to achieve operational efficiency and their goals. In turn, it allows businesses to maximize revenue.
On the flip side, they allow companies to accomplish more with less. In turn, this can reduce the cost of labor in your business. From resource manuals to labor saving devices, they can comprise a wide range of tools.
Want to learn about several tips for implementing effective workforce management tactics? See below:
1. Allow Cross-Training and Job Rotation
One of the best labor solutions a business can implement is quite easy. Simply cross-train each new hire to ensure that they can master various roles. Just make sure that you clarify this during the hiring process, to eliminate any staff members who are opposed to certain duties.
Then, management will be able to make the most with the team they have in place. Since everyone will have received the proper training, it shouldn’t result in too many stressors, either. In fact, there’s a way that you can avoid that risk altogether. Set up shifts in a way that allows the staff to rotate roles–if they can, of course.
For example, the wait staff and hosts in a restaurant are likely to know each other’s jobs inside and out. So, while a select handful might be seating tables and handling front of house tasks one day, they might make up the team of servers the next.
2. Utilize Technology to Automate Tasks
Did you know that there are many tech solutions that can put standard tasks on autopilot? With the help of automation features, businesses are able to innovate processes to accomplish more in a given period of time.
For instance, innovative restaurant technology helps simplify tasks like ordering and payment processing. Whether you leverage the power of online ordering apps or in-house devices, there are many tools to choose from. And even though there will be an initial and monthly investment, smart solutions tend to pay for themselves as time goes on.
3. Analyze Workforce Data
Companies can leverage data to make important business decisions. In doing so, they're able to avoid a significant amount of risk.
Analytics pertaining to performance, sales, and hours are the most valuable. Such information can allow you to identify areas of expertise and improvement across the team. It's data reporting like this that can help a business strategize with confidence. If managers didn't have access to such data, they would be making major calls without much insight to support them.
4. Conduct Demand Planning
We often think of stocking up on high demand products when we think of demand planning. However, this is a common practice for workforce management, too.
Review each point of sale report to determine when your busiest seasons occur. Then, make adjustments to your workforce accordingly. This might mean that you delegate shifts a bit differently. In other cases, it might require the business to hire additional staff members when those times roll around.
At first, it might seem counterintuitive to hire more people in order to cut costs. However, bear in mind that this would be for the sake of productivity. And when the staff is able to provide a great customer experience, guest retention is likely to form.
5. Schedule Shifts Accordingly
One of the best things that you can do for the workforce is to schedule shifts accordingly. If you operate a brick and mortar business you're going to need employees available for each shift. However, not all shifts will require the same number of people.
Assign shifts to more people than usual when you expect the business to be busy. Then, do the opposite for slow shifts and seasons. This will allow the business to maximize their resources. But more importantly, it will allow them to reduce the labor cost during times when cash flow may not be as steady.
Frequently Asked Questions About Workforce Management
Workforce management comprises an overwhelming amount of resources. In order to use them effectively you must fully understand its purpose. With this said, read on to learn more about the topic and its place in businesses across varying landscapes.
What Is the Role of Workforce Management?
The role of workforce management is to increase productivity and reduce costs. Without such processes, it can be challenging to manage both variables. And considering that they go hand in hand, effective management techniques can do the trick.
Is Workforce Management Part of HR?
Yes, workforce management processes are part of HR management. Typically, the HR personnel in each company will have guidelines that are meant to steer each department in the right direction. Though some might have super formal manuals, it’s vital to have something to base decisions off of.
What Is the Workforce Management Process Cycle?
The workforce management process cycle consists of the following steps:
- Performance analysis
What Is Another Word for Workforce Management?
Other terms for workforce management include HR management, workforce asset management, and enterprise resource planning (see: ERP meaning). All of these processes work similarly. So, it’s common to hear upper-level managers mix and match these terms from time to time.
How Can Workforce Management Save Money?
Workforce management can help save money because it induces productivity in the workplace. With relevant tools and processes, employees are able to make the most of their time and resources. Whether it be the tech they have on board, or the strategies in place to work together, workforce management allows teams to do more with less.
Now that you know that workforce management is essential to any business, it’s time to put it into practice. Maybe you’ll begin with staff management principles. Or, perhaps you’ll onboard tech solutions that let you save money over time. Regardless of which resources you choose, they’ll likely do wonders for your business.