Softworks Blog

Finance and its role in Workforce Management

Posted by Mairead Walsh on Thu, Feb 16, 2012

 BY OLIVER MITCHELL, ACA

Oliver Mitchell

Almost every financial controller or head of finance will tell you that their role is so much more than just managing the profit & loss and balance sheet of their business.

Quite often, they are involved in business strategy, IT development, company secretarial, and in a lot of cases, the management/overseeing of Human Resources amongst other things.

 Human Resource management is an essential element of the smooth running of any business. In particular, the areas of workforce planning, modeling and scheduling. Whether you are a manufacturing company or a hospital, ensuring that you have the right people, in the right place, at the right time, at the right cost, is crucial to the core process of your business. For example,  it’s imperative that a hospital or health care organisation have the correct level of staff in place 24 hours a day, 7 days a week.  For some organisations it really is a matter of life and death.

 From a finance point of view, it can prove to be very costly if certain roles are over-staffed.  Manual workforce planning, modeling and scheduling can be extremely time consuming, error prone and tedious. The over-staffing of a certain role has its obvious financial impact, in terms of the additional labour costs, while under-staffing will affect service levels, have a detrimental effect on morale and contribute to staff turnover.

 Although not always measured, there is a cost involved in preparing a staff roster, particularly when there are so many factors to consider when scheduling staff - from annual leave entitlements, working time directive rules, to preferred working hours. There is an even higher cost involved if you get it wrong.

 There are proven, long-term, measurable and on-going benefits to implementing an automated labour scheduling solution. Not only does the system remove the headache associated with staff scheduling, and the costs involved, it also gives managers and supervisors a real-time overview of a day or a week at a glance. An automated solution will eliminate the human error risk of not having the adequate resources in place all the time. Furthermore it allows for a budget v actual measurement of the labour schedule costs to assist with financial planning and forecasting models which is an extremely useful tool for every business.

The role of the head of finance for most businesses is much wider than that of the typical day to day finance elements. Ensuring that you get the most from your workforce is an integral part of the efficient management of a business. Find out more about automated workforce planning, modeling and scheduling solutions and how they can help you streamline your workforce requirements and save your business money.


 

Topics: Workforce Solutions, Labour Scheduling, Accountants