Unlocking Operational Efficiency: Harnessing the Power of Seasonality Optimization

A seasoned WFM expert can bring value to an organization by enhancing operational efficiency through the implementation of flexible workforce systems that align with business seasonality.

When joining organizations, I often observe how they match demand and supply using internal resources, outsource partners, or a hybrid approach. It becomes apparent that the supply of full-time equivalents (FTEs) doesn't fluctuate as much as the workload itself. From an operational perspective, whenever the supply significantly exceeds the workload FTE, it leads to a loss in efficiency. The goal is to closely align the supply FTEs with the workload FTEs.

So, how did most organizations end up in this situation? It's usually unintentional. As businesses grow, they tend to hire full-time workers. However, relying solely on full-time employees doesn't offer much flexibility as their hours cannot be quickly scaled up or down.

How can this issue be addressed?

There are multiple ways, but these three systematic changes usually help:

1. Increase the proportion of part-timers and establish flexible terms that allow for adjusting hours based on business needs.

2. Leverage the capacity of vendors to adjust staffing levels. Vendors are large organizations with the scale and ability to move in and out of FTEs, supporting different organizations as required.

3. Utilize Paid Time Off and Overtime wisely.

Implementing these changes won't happen overnight since they require a systematic approach involving collaboration with operational leaders, human resource business partners, talent acquisition, training and knowledge management teams, and vendors. However, as the organization scales, it is crucial to create flexibility within the system. Failing to do so will result in rigidity and continuously worsen operational efficiency, which is detrimental to the company in the long run. This is one of the area that WFM can make the biggest impact so make sure you focus on it!