Workforce management (WFM) is a set of processes and techniques designed to maximize the performance levels and competency of an organizations workforce. It involves all the activities needed to maintain a productive workforce and improve their efficiency and productivity levels. WFM is an institutional process that optimizes the productivity of employees by effectively forecasting labor requirements, creating and managing staff schedules, tracking attendance, and complying with constantly changing workplace laws and regulations. The objectives of WFM are to optimize productivity and reduce risk.

WFM solutions capture data at the source, such as time clocks, kiosks, mobile apps, web-based timesheets, and points of sale (POS) devices, and automatically apply specific business rules to help ensure accurate and efficient payroll processing. WFM systems may generate alerts when an employees total hours will trigger overtime or if someone tries to work extra time without approval. This feature allows employers to allocate overtime fairly and efficiently and helps them avoid excessive payroll costs due to unapproved work hours. Managers can view real-time data via customized dashboards and make scheduling corrections as needed. They may also run reports to view historical trends across a variety of key indicators.

WFM software is often integrated with third-party HR applications and with core HR systems that serve as central repositories for workforce data. WFM software also offers self-service options that enable employees to request days off or to check paid time off balances without having to ask the HR department, resulting in reduced paperwork and enabling HR employees to focus on other tasks.

In summary, WFM is a process that helps organizations optimize their workforces productivity and efficiency by forecasting labor requirements, creating and managing staff schedules, tracking attendance, and complying with workplace laws and regulations. WFM solutions capture data at the source and automatically apply specific business rules to help ensure accurate and efficient payroll processing. WFM software is often integrated with third-party HR applications and with core HR systems that serve as central repositories for workforce data.