Strategic workforce management plays a role in the success of a business by aligning resources with organisational goals. It not only improves efficiency but also enhances employee engagement. This approach is essential for creating a work environment where individuals feel valued and connected to the company’s objectives. The connection between designed workforce strategies and employee morale is direct; when morale is high performance tends to improve creating a cycle. Strategic workforce management acts as a catalyst in nurturing this dynamic and is crucial for organisational success.
Workforce management refers to the process of planning organising and optimising your workforce to achieve its goals. It encompasses functions, including forecasting workforce requirements recruiting and selecting candidates facilitating their integration, into the company through onboarding and training programs overseeing their performance and using data analytics to make informed decisions.
This article will explore some of the aspects of effective workforce management and how it can influence business performance. Let’s delve into it!
Impact on Employee Morale
Strategic planning in workforce management plays a role in boosting employee motivation and satisfaction. When employees understand how their contributions align with the company’s goals, they feel appreciated and motivated. This understanding leads to job satisfaction and a sense of purpose in their roles. Moreover, strategic planning addresses needs of employees such as job security, fostering a sense of belonging and providing recognition – all essential elements for employee wellbeing. Meeting these needs results, in both higher morale and job satisfaction.
The connection, between workforce management and employee morale can be explained by theories such as Maslows Hierarchy of Needs and Herzbergs Two Factor Theory.
According to Maslows theory humans have five levels of needs: physiological, safety, love/belonging, esteem, and self-actualisation. In the workplace context this means ensuring wages to meet basic needs providing job security and a safe environment fostering a sense of belonging through teamwork and inclusion recognising accomplishments to boost self-esteem and offering opportunities for personal or professional growth.
Herzbergs theory categorises factors influencing job satisfaction into two groups: hygiene factors and motivators. Hygiene factors like salary, working conditions and company policies prevent dissatisfaction but do not necessarily motivate employees. On the other hand motivators such as recognition, responsibility and personal growth play a role in driving employee satisfaction and motivation.
These theories suggest that meeting employees’ basic needs as their psychological needs is crucial for enhancing morale. By addressing aspects like security, belongingness and recognition within the workplace environment can effectively motivate staff members.
An example illustrating the importance of workforce planning comes from Neumann Contractors—a manufacturing business located on the Gold Coast. During a workshop organised by the Gold Coast Manufacturing Hub in 2021 facilitated by Neumann Contractors, they recognised the significance of implementing strategies for managing their workforce. Prior to this workshop session they lacked an approach, towards their workforce planning. This realisation prompted them to analyse each of their ten business units identifying any gaps and aligning their workforce with the company’s objectives.
This shift marked a turning point for Neumann. It enabled them to incorporate workforce planning into their operations including conducting assessments to identify skills gaps and creating plans, for staff recruitment and development.
During the COVID 19 evolving labour market conditions, Neumann Contractors focused their attention on workforce related matters. Having defined plans for workforce development proved invaluable particularly as they encountered business opportunities during this period.
Between 2021 and 2023 their business turnover nearly doubled. They expanded their workforce from 74 to 110 employees with an increase in apprenticeships from 1 to 8.
Neumann Contractors placed emphasis on talent development and attraction successfully upskilling approximately 40% of their employees. Furthermore, they have intentions to establish a mentoring program that leverages the expertise of tradesmen in mentoring apprentices and young workers thus further strengthening their workforce.
Boosting Job Performance
There is a connection between employee morale and job performance—high morale often leads to increased engagement and productivity. Satisfied employees are typically more dedicated to their work, and to the overall success of the company.
Aligning workforce management with performance goals necessitates establishing expectations while offering support. To effectively align employee efforts with goals, it is important to focus on feedback and development opportunities that are in line with company objectives. Here are some key strategies for managing the workforce.
- Setting expectations; Clearly defining role responsibilities and performance expectations helps employees understand what is expected of them enabling them to work more focused and effectively.
- Providing feedback; Regular feedback sessions ensure that employees are aware of their progress and areas for improvement promoting development.
- Creating growth opportunities; Offering training programs and avenues for growth helps employees develop skills in line with the organisations changing needs.
- Involving employees in goal setting; Engaging employees in setting their goals promotes their commitment and engagement in their work.
- Promoting team collaboration; Encouraging collaboration among team members fosters a sense of community. Shared purpose. This approach leverages skills and perspectives leading to innovative solutions and improved team performance.
- Implementing performance metrics; Using clear relevant performance metrics allows tracking progress while aligning employee efforts with business outcomes. Metrics provide goals for employees to strive towards while assisting managers in assessing performance.
- Recognising and rewarding achievements; Establishing a system that acknowledges and rewards high performance boosts morale and motivates employees to excel.
By implementing these strategies organisations can effectively manage their workforce while aligning employee efforts, with company objectives. This can be achieved either using HR management software or a standalone system. The recognition can take the form of rewards, such, as bonuses or non-monetary ones like acknowledgment or additional responsibilities.
By implementing these strategies, a holistic approach is created to align workforce management with performance goals ultimately driving success for both employees and the organisation.
Baker Tillys Strategic Shift in Performance Management
Recognising the need to modernise their performance management practices Baker Tilly, a CPA firm took steps to revamp their outdated system that had been in place for over a decade. To achieve this transformation, they assembled a task force for researching and developing an improved performance management process incorporating innovative tools and technology.
To ensure perspectives and insights were considered during this process an Advisory Board consisting of partners was established specifically for performance management.
A vital part of this transformation was conducting a six-month pilot program involving 600 employees. The feedback received during this phase was crucial in refining the system. As part of supporting this transition, Baker Tilly created an intranet site called “My Development” which provided access to training and coaching resources.
Furthermore, the firm implemented strategies to engage employees in the change management process. One such strategy involved using memes as part of a campaign to increase participation and generate interest, into the system. This strategic revamp resulted in advancements of Baker Tillys management of its workforce. Here are some of the benefits they experienced:
- Boosted employee engagement; The new system cultivated a culture of feedback and development leading to higher levels of employee dedication.
- Enhanced performance: The company achieved its performance in decades after implementing the changes partially attributing this success to the new approach to managing employee performance.
- Positive cultural transformation: The overhaul instilled a growth-oriented mindset among employees emphasising performance and ongoing growth.
Baker Tilly demonstrates the impact that strategic workforce management has on enhancing job performance. Through targeted initiatives and a commitment to developing their employees they achieved improvements in both employee morale and organisational success.
Common Challenges and Solutions
While strategic workforce management is crucial to align resources with business goals and enhance employee engagement, some challenges occur when implementing these strategies. Typically it involves resistance to change, communication barriers, and connecting individual to organisational objectives.
To navigate these challenges, try the following suggestions:
- Actively involve employees in the planning process that fosters a sense of ownership and eases resistance.
- Communicate clearly and transparently to ensure everyone is on the same page with the company’s vision.
- Incorporate regular training and support to help employees to adapt to new strategies.
This way you have created a positive work environment where strategic workforce management not only improves efficiency but also boost morale and performance within your organisation.
Elevate Your Business with Strategic Workforce Management
The primary objectives of workforce management revolve around ensuring that the organisation has the individuals with the necessary skills, in appropriate roles at the right time. This entails predicting workforce needs, identifying areas where skill development is required, attracting and hiring top notch talent, providing onboarding and training experiences, effectively managing performance evaluations and leveraging data analytics for decision making purposes.
We have emphasised the role that strategic workforce management plays in boosting employee morale and performance. This underscores the significance of communication tailored training programs acknowledging employees’ accomplishments. These elements are essential for fostering a productive workforce while driving success.
Effectively implementing workforce management is pivotal, for nurturing a workplace culture and achieving business objectives. Prioritising these strategies will undoubtedly assist organisations in enhancing employee morale improving performance and ensuring growth. Therefore, strategic workforce management stands as a key aspect of a resilient organisation.
Rob is as a professional content marketing manager, for Deputy, a scheduling software that helps businesses efficiently manage their workforce across different industries. In addition to optimising operations, he stays updated on the trends, in SaaS, B2B and technology as a whole. Contributing this post with Paramount to help Australian Business increase productivity.