During the workforce management software buying process, the reality is that you’re going to end up crunching some numbers. Lots of numbers, including the return on investment you’re likely to see once the solution is successfully implemented. This is one of the first questions we get asked by new customers, and unfortunately, the answer isn’t a simple one.
The best way to calculate your ROI is to start with your most important metrics. Some quick questions to consider:
- What are you currently reporting against?
- How are you measuring the areas you’re looking to improve?
- What are you trying to achieve with workforce management software?
Because modern workforce management software can handle scheduling, payroll and HR functions, start your research there. Here are five metrics to consider to calculate workforce management software ROI for your business.
Are you tracking payroll errors? The frequency, or size of them? Or maybe even the time it takes to rectify errors?
Excel formulas and complicated, manual calculations are sometimes a part of your award rate and pay rule process. More manual processing = a higher risk of errors. This could lead to overpayments, underpayment or data hiccups across the business. But, with automated systems, you can virtually end these errors.
Automatic award interpretation allows you to save time while also reducing delays in payments due to errors. Better yet, when you automate these processes, less time is spent on admin. This frees up your time for the areas of your business that need it more.
Atlantis Childcare has seen a 90% reduction in pay errors since implementing Ento. Have a read about it here.
Unplanned or unnecessary overtime is costly to a business’s bottom line. One of the most important metrics for our new customers (and existing ones alike!) is labour cost vs. budgeted cost.
A system with time and attendance capture can help managers minimise overtime, and overservicing.
The businesses we talk to have varying definitions of ‘compliance’. For some, this could mean legislative compliance, for others it’s all about business rules (pay, leave, breaks). When a business fails to be compliant, it can end up costly.
Manual processing can increase an organisation’s exposure to non-compliance risk. This is important for the childcare and aged care sectors, who accommodate care and qualification ratios across schedules. Read about how Atlantis Childcare manages compliance through Ento.
How is employee engagement measured across your business?
Workforce management software’s communication tools keep employees across all levels engaged. Using your WFM software to centralise conversations gives everyone the information they need in one place. But it’s not just about filled shifts or correct timesheets. Employee self-service functions empower staff with flexibility, autonomy and satisfaction.
Revenue and Profitability
Utilising software to support workforce processes paves the way for revenue growth. According to research by Accenture, digitally fluent companies are 2.7 times more likely to have experienced high revenue (over 20%) growth over the past three years.
You can use workforce management software to optimise profitability, too. Some retailers even use workforce management tools to make data-informed decisions to shape their scheduling. This maximises sales opportunities – the right employees exactly where you need them.
When you can better manage your workforce, your business can reach new heights.
If you’re unsure how to choose the best workforce management software for your business, download our free eBook. It outlines the end-to-end process and is packed full of resources to help you choose the right software for your needs. Including, more info on calculating workforce management software ROI.
If you’re interested in Ento for your business, we’ll happily do the ROI calculations for you! Get in touch for a demo today.