For CEOs around the globe, improving operational effectiveness is a top three investment priority this year, according to survey results from the 16th Annual PwC Global CEO Survey. CEOs see it as a priority because organizations that perform the best when it comes to both sales and profit growth are those that most effectively balance cost-cutting measures to survive in the short term with investment opportunities to expand in the long term. 

Three steps for developing long-term workforce management success

For CEOs around the globe, improving operational effectiveness is a top three investment priority this year, according to survey results from the 16th Annual PwC Global CEO Survey. CEOs see it as a priority because organizations that perform the best when it comes to both sales and profit growth are those that most effectively balance cost-cutting measures to survive in the short term with investment opportunities to expand in the long term.

For most companies, achieving this balance requires a three-step approach that builds upon a) a solid transactional foundation, followed by b) visibility into workforce patterns and trends and c) an intelligent workforce design that ensures effective decision making to meet overall business objectives.

“…organizations looking to be proactive with their business strategy now have access to tools and technology to effectively capture and capitalize on their workforce data starting at the transactional level.”

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-  Jayson Saba, vice president of strategy and industry relations at Ceridian

“The task of building a workforce for long-term success can pose significant challenges for HR professionals and leaders,” says Jayson Saba, vice president of strategy and industry relations at Ceridian. “However, organizations looking to be proactive with their business strategy now have access to tools and technology that can enable them to effectively capture and capitalize on workforce data.”

Developing long-term workforce management (WFM) success for your company starts with a three-layered approach that can lead to greater operational efficiency and better business-wide decision making. These layers include: the transactional layer, the analytical layer and the design layer.

Building your strategic workforce

1.       The Transactional Layer3 Layers.JPG

As your base layer, all moving parts of your business rely on ensuring accuracy and efficiency with every workforce transaction, be it payroll, time and attendance, benefits or others.

Saba says, “Success at this level requires streamlining processes and automating transactional workflows. If a company doesn’t trust its technology to perform sophisticated calculations for pay rules, deductions, benefits eligibility, taxes, etc., then employees will not feel confident that they’re being paid accurately and on time. Consequently, managers and leaders wouldn’t feel confident in that information to make more trusted decisions.”

Companies with effective transactional layers not only operate efficiently, accurately and compliantly, but they also have access to real-time workforce data collection which is critical to fueling the next level of the process.

2.       The Analytical Layer

The analytical layer is where employers take the real-time data they captured in the transactional stage and transform those reports and metrics into solid drivers of business decisions.

“Day-to-day data becomes information the company can act on in areas such as compensation, benefits, deployment, cost savings and budgeting,” says Saba. “Success at this level requires valuable analytics to be delivered to users at their fingertips (e.g. real-time dashboards, alerts and mobile).”

For companies to feel successful at the analytical layer, stakeholders need to feel empowered to make better decisions quickly and regularly – from hiring to scheduling to benefits to retiring. These decisions can in turn help reduce costs and help the company work towards executing strategic business objectives.

3.       The Design Layer

This top layer is where data-driven WFM decisions can achieve long-term sustainability, agility and growth. Based on the data collected at the transactional layer and made meaningful in the analytical layer, intelligence empowers employers to make workforce design decisions that yield tangible outcomes, such as:

  • Hiring the right people, with the right skills, for the right positions
  • Providing a winning “total compensation” package
  • Delivering clear career paths to nurture and advance top performers
  • Ensuring that continuous WFM needs are met as a result of evolving business needs

Saba says, “Success at this level requires complete visibility into people and positions, wide and active candidate funnels and strong alignment between employee positions, schedules, time worked, rewards paid, skills developed for each position and compensation adjustments.”

Companies looking to design a holistic WFM strategy that can better position them for short-term investment opportunities and long-term growth should evaluate their tools and technology to ensure that efficient and accurate transactional processes and real-time visibility into key data and metrics are in place.

For more information:

  • Learn about Ceridian Dayforce HCM
  • Read more tips for being successful with analytics
  • View our big data infographic