Workforce Management: What it is, Key Features & Benefits

In the world of business, the term workforce management (WFM) is used to describe the process of scheduling, monitoring, and managing a team of employees. 

This guide will outline the key components of workforce management and explore how it can contribute to business efficiency and profitability. We’ll also look at some common challenges in contemporary workforce management, and provide tips for successfully navigating today’s ever-evolving business landscape.

What is workforce management?

Workforce management (WFM) is about making sure a workplace has the right staff in the right roles so a business can function smoothly. Effective WFM requires careful planning and ongoing monitoring of operational processes such as staff scheduling, attendance, and productivity. 

Workplaces have undergone a lot of change in the last decade, largely as the result of technological developments (such as AI) and the global disruption caused by the pandemic. Business owners need to be mindful of the changing world of work when approaching WFM, meaning that they need to provide resources to accommodate remote/hybrid work arrangements, as well as being mindful of employee wellbeing. 

Key components of workforce management

Managing a workforce requires clear communication, efficient scheduling, and performance tracking. You should also provide your employees with opportunities for growth and development. 

In this section, we’ll look at the key components of effective workforce management—helping to keep your staff happy and your business on track.  

Staff scheduling 

Staff scheduling involves planning and assigning shifts to ensure the right coverage at all times. Good scheduling helps to avoid issues like understaffing, overtime costs, and employee burnout. 

Here are some important things to keep in mind when approaching staff scheduling:

• Know your workforce: When you’re aware of each staff member’s strengths, as well as their shift preferences, you’ll be able to optimise workplace efficiency. 
• Plan ahead for busy periods: You can analyse historical data to find out when your business is likely to be busy, and then make sure enough staff are scheduled to deal with the rush. 
• Comply with workplace law: Staying up-to-date with the latest workplace regulations is essential. You’ll need to ensure that your staff scheduling is compliant with Australian workplace law – being particularly mindful of hours of work, breaks and rosters. 
• Minimise last-minute changes: To avoid disruption with staff changing their shifts at the last minute, establish clear policies and procedures for requesting schedule changes. 
• Implement timely and effective communication: Make sure that scheduling information is readily available and easy to access at all times so that everyone in your team is on the same page. 

Time and attendance management

Time and attendance management involves tracking when employees start and finish work—including breaks, leave, and any overtime. It’s vital for making sure your employees get paid correctly, plus it can provide valuable insights into productivity and labour costs.

A workforce management system such as QuickBooks Online makes it easy to manage staff time and attendance. Learn more about our Time Tracking feature, or try out our free timesheet calculator here.

Payroll management

Payroll management is the process of calculating and distributing employee wages, taxes, and entitlements. When integrated with time tracking systems, payroll becomes more efficient with a reduced risk of errors. 

QuickBooks includes an integrated Payroll function—helping to streamline payroll management. Your staff can provide their tax, super, and banking information directly into the QuickBooks platform via the Employment Hero app. They can also log in to easily manage their timesheets and view their payslips.

Performance management

Performance management is the ongoing process of setting goals for your team, and evaluating their progress. It’s all about setting clear expectations for your employees and providing useful feedback while identifying opportunities for development. 

QuickBooks Online allows you to track employee progress and store performance management details. You can link these processes to other features such as payroll and time tracking for optimal efficiency. Learn more here about the five types of training to help boost employee productivity.

Employee engagement and retention

Employee engagement and retention are vital to building a motivated team. When employees feel valued and connected to their work, they’re more likely to be satisfied in their roles and committed to the company’s long-term success. 

To maintain engagement and improve retention, businesses should take a strategic approach to how they manage their teams. A strong management workforce strategy involves listening to employee feedback, offering clear development pathways, and fostering a healthy work-life balance. This approach not only enhances daily operations but also reduces the time and costs involved in hiring and training new staff.

Why businesses need workforce management 

Looking after your workforce is key to running a successful enterprise. When your staff feel valued, and when you make the effort to accommodate their needs, your organisation is more likely to thrive. 

Here are some of the key reasons why an integrated approach to workforce management is essential to business success:

• Improved productivity: With efficient scheduling, time tracking, and performance monitoring, your businesses can reduce downtime and boost output.

• Cost efficiency: By avoiding overstaffing, managing overtime, and streamlining payroll, you can better control labour costs. 

• Better compliance: Workforce management tools can help your businesses stay compliant with workplace laws, industry awards, and Fair Work requirements.
• Enhanced employee satisfaction: Clear communication, fair rostering, and recognition of performance all contribute to happier, more engaged employees.

How workforce management software enhances efficiency

Using a cloud-based WFM system such as QuickBooks Online can give your business a competitive edge. Here’s how:

• Time tracking: QuickBooks makes time tracking easy – allowing you to schedule your workforce while providing accurate timesheet management. 

• Payroll: Using the payroll function in QuickBooks Online, you can save time with automatic calculations, while making sure all your tax obligations are being met.

• Real-time updates: This gives you immediate visibility into key areas such as payroll and cash flow – allowing you to make faster, data-driven decisions. 

• Automation: By automating repetitive administrative work (such as calculating wages and tracking leave), QuickBooks frees you up to consider the bigger picture. 

• On-the-go access: You can access QuickBooks from your laptop, mobile, or tablet – so you can stay connected to your workforce even when you’re attending client meetings or travelling. 

Challenges in workforce management

When you’re running a business, it’s inevitable that you’ll run into hurdles. This section will explore the most common challenges in workforce management—plus tips on how to overcome them.

Workforce scheduling

The challenge here is balancing staff availability with workload demands. It can also be extremely complex managing the shift preferences of your employees to make sure everyone is getting enough work, and working at times that suit them. Additionally, last-minute shift changes can be a real problem.

To solve these issues, use scheduling tools that offer real-time visibility and allow for shift swapping or mobile access. This way, it will be easier to manage rosters flexibly and fairly.

Attendance tracking

Manual timesheets or outdated systems can lead to inaccurate records, time theft, and payroll errors. Without an efficient time tracking system, you run the risk of underpaying your staff—which can be demoralising and disruptive. 

To ensure accuracy, implement a digital time-tracking solution that syncs with your payroll software. When these systems are integrated, data can be captured with accuracy—helping to alleviate issues with attendance tracking. 

Compliance with workplace laws

One of the biggest challenges for small business owners is staying compliant with changing award rates and Fair Work regulations. Managing leave entitlements can also cause problems if done incorrectly. 

QuickBooks accounting software can automatically update rates and entitlements, helping to make sure your business stays compliant and avoids penalties.

Legal considerations for workforce management in Australia

Workforce management in Australia must comply with a range of workplace laws, including those set out by the Fair Work Act 2009. As an employer, you are responsible for following rules around minimum wages, working hours, leave entitlements, superannuation, and award rates. 

Key areas of compliance include:

• National Employment Standards (NES)
• Modern awards and enterprise agreements
• Accurate record-keeping and payslip requirements
• Workplace health and safety obligations

You can learn more from Safe Work Australia and Fair Work Ombudsman.

QuickBooks Online takes the hard work out of running a compliant business, thanks to features such as automated award rate calculations, payroll processing, and leave tracking. It also maintains accurate records and provides audit trails – reducing the risk of human error.

AI, working from home, and the future of workforce management

The future of workforce management is being shaped by powerful technologies like artificial intelligence (AI) and machine learning. These tools are transforming how businesses forecast staffing needs, analyse productivity, and optimise scheduling—helping leaders make smarter decisions. 

AI is having a particularly significant impact on workforce management. You can use software with AI capabilities to identify patterns in employee behaviour, flag potential issues early, and support more proactive management.

Additionally, the rise of remote and hybrid work has created new challenges and opportunities. Businesses now need flexible systems that can track productivity, manage teams across locations, and maintain strong communication and collaboration. Cloud-based solutions like QuickBooks support this shift, offering real-time insights and seamless workforce oversight from any location.

Implement workforce management software

QuickBooks accounting software takes the hard work out of managing your workforce. With automated processes, a user-friendly interface, and assistance with tax compliance, you can keep your business running smoothly while making sure your staff are paid accurately and on time. 

Try our 30 day trial to see how QuickBooks can revolutionise the way you do business.