Workforce management vs human resource management

Workforce management and human resource management are two different functions within an organization, although they may overlap in some areas.

Workforce management is a discipline that focuses on the effective and efficient management of a company's employees, with the goal of maximizing productivity and minimizing costs. This can include tasks such as scheduling, payroll, time and attendance tracking, and forecasting labor needs. Workforce management systems often include software and tools to help organizations manage their employees more efficiently.

Human resource management, on the other hand, is a broader term that refers to the overall management of people within an organization. 

This includes tasks such as recruitment, hiring, training, performance management, and employee development. Human resource management also involves developing policies and procedures related to employment and ensuring that the organization complies with laws and regulations related to employment.

So workforce management focuses specifically on the management of an organization's employees, while human resource management is a broader term that encompasses all aspects of managing people within an organization.

This article will explain their differences and how their planning process differs from each other.

Human resource management ​

Human resource management is the practice of overseeing a company's employees. This entails finding and employing qualified candidates, orienting them to their new roles, providing them with the necessary training, and monitoring their progress toward organizational goals. Human resource management encompasses various activities, such as managing employees' performance, paying them fairly, and maintaining positive relationships with them.

Effective and efficient human resource management is essential for any successful business. With well-executed human resource management, businesses may succeed in their missions. 

So, what is workforce management? 

Human resource management includes workforce management as one of its subfields. Strategic and effective administration of an organization's human resources is the main concern of workforce management. Employment administration entails tasks like staffing, scheduling, and time and attendance recording.

Workforce management's objective is to maximize the efficiency with which human resources are employed. Businesses can save money and boost output through better human resource management. 

Workforce analytics and performance management provide valuable insights into employee productivity, helping organizations make informed decisions that drive business success. By leveraging data, companies can identify trends, forecast staffing needs, and implement strategies that align with their overall goals.

Workforce management vs human resource management

Human resource management is a larger word that includes everything to do with managing an organization's employees. Similarly, the strategic and effective management of a company's employees is the domain of workforce management, a subset of human resource management.

Human resource management is the most all-encompassing word, but the workforce and human resource management are critical to the success of any business. 

How is HR related to workforce management? 

Human resource management is a complex issue for any business. Human Resources and Finance regularly engage in healthy disagreements and extensive analyses to determine how best to allocate employees. In the past, HR did not handle worker management. Human resources in a modern company must take on the challenge of ensuring a fair distribution of employees. HR must establish fundamental guidelines for the distribution of workers and the establishment of new positions.

An in-depth understanding of the business processes and how they contribute to value is essential for effective workforce management. Managing a company's workforce involves more than merely counting workers. The organization of the personnel is equally crucial.

The organizational makeup of the workforce is the primary factor in determining the size of the company's personnel budget. Investing in a competitive edge can be hampered by high staff costs. HR's responsibility is to identify these roadblocks and streamline the organization's structure so it can respond rapidly to shifts in the external environment. 

What is the importance of workforce management? 

Human resources' primary responsibility is to increase the company's profit by using its employees better. The correct organizational structure for the workforce is priceless since it allows for optimal personnel costs. Since there is a lot of rivalry in the market, paying more for employees might be a major disadvantage.

The Human Resources department should not fill any requested positions. Human resources should push managers to run with as few employees as possible. Although making a brand new job opening is a breeze, the final cost will be very high. A new hire incurs a definite expense, but it's impossible to know how much value they'll provide. Human resources should question both the business requirement and the position's nature.

Human resources encompass a wide range of business operations. Human resources must compile accurate job descriptions that suit the organization's needs. It is the responsibility of human resources to identify instances of redundant staffing of individual tasks. Human resources should find redundancies inside the company. 

How does HR influence workforce management? 

Human Resources establish basic guidelines and regulations. Human resources are responsible for determining how new positions will be made available. The criteria for measuring performance on the job must be determined by HR. Maintaining internal equity requires careful evaluation of each open post.

A new position in an organization cannot be created without a rigorous procedure established by HR. The HR department makes the tough call at the end of the new position creation process, but that call must be grounded in data. The HR Business Partner's role in Human Resources is not to defend the manager's interests. The HRBP's job is to push the supervisor to provide solid justification for the conclusion they've reached.

Human Resources needs to set up the foundation for the workforce. All managers must adhere to established procedures for creating the new managing post. Minimizing fat in the organization's employees is a top priority. When a new role is formed at work that doesn't follow all of the guidelines, fingers are pointed at human resources.

HR's main responsibility is looking out for the company's shareholders. Human resources are responsible for maintaining a secure work environment and a cost-effective payroll system. 

What is the difference between HR planning and workforce planning? 

In the human resources field, workforce planning is a hot new specialty. To construct a strong foundation for future talent acquisition, development, and retention, workforce planning is an essential strategic exercise. It's crucial to remember that workforce planning encompasses more than hiring new people to work for a company. It also takes into account methods in which existing workers can improve their abilities and new ways in which those without such abilities can be trained.  

Workforce planning is not the same as HR planning ​

The goal of workforce planning is to ensure that your company has an adequate number of employees with the necessary abilities at all times by forecasting future demand, creating a strategy to meet that demand, and putting that strategy into action.   An essential aspect of this planning process involves utilizing the right tools and templates. For those looking to streamline this process, a manpower planning template can be a valuable resource. Such templates can help businesses forecast staffing needs accurately and ensure that they are always prepared to meet the demands of the market.

However, performance management and employee relations are part of HR planning. In business, it's a collection of short-term strategies for handling employee affairs as they are right now.

Strategic workforce planning can help businesses adapt quickly to changes in the local labor market due to factors like new legislation or technological advancements. 

Workforce planning is more complicated than HR planning

 Human resources are only a part of workforce planning. Human resources, finance, and marketing, among others, play important roles in this strategic process. Aligning employees with the company's strategic goals is the ultimate aim of workforce planning.

Workforce planning considers not just the recruiting of new workers but also the most efficient and productive utilization of existing workers over the course of their careers. Which jobs will be necessary to support projected expansion is another consideration in workforce planning.

The workforce planning process is different from the HR planning process

Workforce planning and HR planning are two different processes, although they may be closely related.

Workforce planning is the process of forecasting an organization's labor needs and developing strategies to meet those needs. This can include analyzing current and future workforce requirements, identifying skills gaps, and developing plans to address those gaps through training, hiring, or other means. The goal of workforce planning is to ensure that the organization has the right number of employees with the right skills in the right place at the right time.

HR planning, on the other hand, is the process of aligning the organization's human resource needs with its business goals and objectives. This includes forecasting future HR needs, developing strategies to meet those needs, and implementing those strategies through recruiting, hiring, training, and other HR activities. HR planning may also involve developing policies and procedures related to employment, as well as ensuring compliance with laws and regulations related to employment.

While workforce planning focuses specifically on forecasting and planning for labor needs, HR planning is a broader process that involves aligning HR activities with the overall goals and objectives of the organization.

HR aims to manage resources

Human resource planning is the process of allocating and coordinating these resources to achieve legal, internal, and external goals. Future resource management is at the heart of workforce planning, which is done to ensure that organizational goals will be attained in the years to come.  

HR plans to get the right skills

Workforce planning, in contrast to human resources planning, considers the future of work in light of technological advancements and shifts in the labor market and formulates a strategy for acquiring the skills necessary for that future.

Workforce planning is for talent management 

Long-term talent management success relies on thoughtful, well-planned workforce strategies, and workforce planning is a key part.

It necessitates familiarity with demographic fluctuations, such as those brought on by an aging population or changes in immigration policies, technical developments that impact the job market, and strategic alterations in companies' hiring practices.

The availability of qualified personnel in specific sectors (like IT) or geographical areas is another factor workforce planners consider (such as Silicon Valley).

Workforce planning helps to deal with changes

With the help of workforce planning, businesses can anticipate and adapt to future events, identify and capitalize on new possibilities, rationalize their staffing demands, and achieve their goals with the help of a competent and motivated workforce.

Planning for a company's employees' future is as important as planning for the present. If they want to be ready for the unexpected, capitalize on opportunities as they arise, and defend the resources they devote to staffing. Likewise, they attract and retain the best talent possible to achieve their strategic goals; businesses must regularly monitor the labor market and technological developments.

Workforce planning is a long-term process

Long-term processes like workforce planning need to get underway before their actual implementation. Organizational capabilities and future demands are first established.

The right workforce plan can give you an advantage over your competitors ​

 Workforce planning might help you get a leg up on the competition. It's useful for keeping track of labor costs, getting ready for the unexpected, and pinpointing workers who could benefit from additional instruction. Strategic human resource planning is a powerful tool that may set your company apart from the competition.

Workforce planning and human resources (HR) are distinct disciplines, although they share important similarities. It's not always easy to tell which is more crucial, but both are essential for any firm that wants to thrive in today's market.

Which term should you use in the workplace, workforce, or human resource planning?

This question cannot be answered with certainty. Some businesses prefer human capital management because it describes the broad range of tasks and procedures involved in personnel administration.

Many businesses use the phrase "workforce management" instead, which refers more narrowly to the process of planning for and directing the activities of an organization's employees. Organizations might use their own term to describe themselves.

You should know that some HR experts dislike the term "human capital" since it suggests treating workers as interchangeable parts. Those working in human resources may prefer the phrase "workforce management" because it emphasizes managing employees more efficiently. Nonetheless, they are familiar with either phrase.

What factors can influence workforce management and human resource management?

Putting HCM and WFM practices into practice can provide several difficulties. Among these difficulties are the following:

Resistance from employees

Managing "change" may be challenging, as every business owner knows. In some cases, workers may be reluctant to accept new responsibilities or shifts in their work schedules. That's why leaders must demonstrate the changes' positive effects on staff (and the business).

It's simple to sell the advantages of using a modern intranet like AgilityPortal for employees to check their schedules and timecards on the go. The workforce greatly appreciates the ease of this.

Cost of implementation

When not integrated with the company's scheduling and timekeeping software, human resource management and workforce management systems can be prohibitively expensive to set up.  Outsourcing human resources can help streamline this process, offering a cost-effective solution that reduces the burden on internal teams and ensures a smoother transition.

A company's expenses are likely to rise in proportion to the number of its systems. Integrating systems or employing an all-in-one can save businesses time and effort by eliminating the need for duplicate data entry.

However, integrating some legacy systems can take weeks or months and often requires costly customization.

Accuracy of the data

Facts and figures used in deliberations need to be reliable. It can be difficult if the data regarding key performance indicators are not collected consistently or kept up to date.

How can software solutions help you in workforce management and human resource management? ​

All managers would do well to familiarise themselves with human resource and workforce management principles. Human resources and workforce management are often interchangeable; however, this isn't always clear. The term "workforce management" is preferred by certain businesses, while "human resource management" is used by others. In the end, it's up to each company to decide for themselves which term to use.

Several software options are at their disposal to aid firms in putting HRM and WFM practices into practice. Human resource (HR) software, scheduling software, time and attendance monitoring software, and workforce planning software are all viable options. Organizations can boost output and cut expenses by applying the ideas of human resource management and workforce management.

AgilityPortal is complete management software that may be used for time tracking, automation, employee scheduling, and resource management. The system is fully compatible with its mobile app. In addition to the aforementioned benefits, other additional features can be used to enhance productivity and management.

 Wrapping up

The terms "human resource management" and "workforce management" are sometimes used interchangeably, but this is not the case. As described earlier, workforce management is a subset of human resource management. We hope that this guide will help you to understand the differences better.