As we step into 2025, the workforce management (WFM) industry is on the cusp of transformation. For years, Axsium Group has analyzed trends, projected future market shifts, and prepared our clients as the WFM landscape changed. This year, however, one word encapsulates the industry’s soon-to-be, strikingly single-minded focus: “Optimization.”
In previous years, my annual predictions blog has provided multiple tips to guide WFM practitioners through upcoming challenges and opportunities. This year, I am concentrating on one overarching prediction. Optimization will be the cornerstone of workforce management in 2025. And it’s not just a buzzword—it is a call to action for all WFM professionals to refine and enhance their systems, processes, and labor models.
The Imperative to Optimize WFM Systems
Let’s start by talking about why organizations will be optimizing their WFM systems. These systems are the backbone of workforce management, automating complex tasks such as budgeting, forecasting, scheduling. More than that, these systems help WFM teams track productive and unproductive time and efficiently manage day-to-day operations.
Over the last several years, the industry has gone through an unprecedented modernization wave. Organizations around the world have upgraded, migrated, or implemented next-generation WFM systems. Now, we need to shift our attention to being good stewards of these shiny new systems.
A big part of this effort will involve finishing those things left undone when we moved from the old system to the new. For many WFM practitioners, it will mean implementing new modules and improving how existing capabilities function.
Enhanced Data Analytics and Optimization
WFM systems generate and process extensive data in real time. However, accessing this information has been a persistent issue for users. As such, a primary objective for system optimization in 2025 should be to utilize advanced data analytics to provide actionable insights across organizations.
Some will take advantage of the enhanced analytics tools offered by their modern WFM systems. Others will employ new data integration methods to synchronize WFM data with other corporate systems, using third-party tools for data presentation. Alternatively, some may adopt a hybrid approach. This will involve employing built-in analytics to deliver information to certain users and external tools to convey information to others.
Improved Forecasting and Scheduling
Accurate forecasting and efficient scheduling are crucial components of workforce management. In 2025, WFM systems will need to incorporate advanced forecasting techniques. These techniques include utilizing historical data, current trends, and predictive analytics to anticipate future workforce needs. Improved forecasting will enable organizations to better align their staffing levels with demand, reducing both overstaffing and understaffing scenarios.
Optimized scheduling tools will also allow organizations to schedule their employees in a more dynamic and flexible manner. These tools will take into consideration factors such as employee availability, skill sets, and preferences. All this will result in schedules that not only meet operational requirements but also enhance employee satisfaction. By improving forecasting and scheduling, organizations can ensure that they have the right people in the right place at the right time.
Continuous Configuration Optimization
Optimization goes beyond discrete projects like analytics or forecasting and scheduling. Organizations must continuously optimize and update their WFM system’s core configuration. WFM practitioners cannot adopt a set-and-forget approach. The system’s configuration must be as dynamic and adaptable as the business environment in which it operates.
Market conditions, workforce characteristics, and organizational priorities constantly evolve—so too must WFM systems’ configurations. Regular reviews and adjustments will ensure a WFM system remains aligned with strategic goals, operational demands, and regulatory requirements. Continuous optimization allows organizations to respond swiftly to changes, maintain efficiency. And that helps them derive maximum value from their WFM investments.
Streamlining WFM Processes
The second facet of optimization involves streamlining WFM processes. The processes organizations use to manage their WFM systems, operating environments, and workplaces need to be as efficient and effective as possible.
Establishing a WFM Center of Excellence
Creating a WFM Center of Excellence (CoE) is an impactful, strategic approach to streamline processes. A CoE serves as a centralized team or hub that develops best practices and provides training. It ensures the consistent application of WFM strategies across the organization.
By establishing a WFM CoE, organizations can foster a culture of continuous improvement and operational excellence. This drives consistency and efficiency throughout their WFM systems and processes.
Driving ROI from WFM
In today’s economic environment, organizations seeking ways to save money and boost profits often target labor costs. WFM practitioners should proactively seek ways to demonstrate, and even increase, the ROI of their work. Doing so will not only minimize disruption from corporate cost-cutting exercises but also demonstrate business acumen to leadership.
Unlocking Optimization Opportunities in Labor Models
The labor model is the fuel that makes a WFM system run. If you’re unfamiliar with the term, a labor model essentially describes four things. What work is performed, how it is performed, what drives the work, and how much time it takes to complete the work. A poor labor model will cause the system to produce poor forecasts and schedules. A great labor model will drive efficient operations.
Of course, a labor model is used for more than simply forecasting and scheduling. Your labor model provides tremendous insight. From opportunities to improve customer service and create a better work experience, to streamlining operations, and saving money and time. Not surprisingly, labor models will be the third optimization area in 2025.
Incorporating Workplace Attributes
Incorporating workplace attributes into your labor model is an impactful approach to optimization. When it comes to labor standards, too many organizations take a one-size-fits-all approach. They assume it takes the same amount of time to perform a task regardless of workplace.
Unfortunately, this assumption is faulty. Workplace size, the equipment used, the product mix, and more can influence the time it takes to perform a task. Even small differences between locations add up to big hours at scale. Including workplace attributes in your labor model can ensure that each location gets the amount of labor it needs.
Accounting for Upgrades
Organizations continually evolve by upgrading systems, adding new products, removing old products, and introducing new automation. These changes can impact labor models. For example, providing a new handheld device to frontline workers may change alter task durations. New or upgraded enterprise systems may provide access to better labor drivers. Even minor changes have a significant impact on labor needs. For example, changes to supplier packaging can increase or decrease the effort required to handle orders.
WFM Practitioners have an opportunity to optimize their labor models by staying on top of changes in their organizations and reflecting those changes in their labor models.
Making Optimization Your Focus in 2025
As we navigate 2025, optimization will be the WFM industry’s guiding principle. WFM practitioners must focus on refining their systems, streamlining their processes, and unlocking the opportunity in their labor models to stay ahead in a rapidly changing landscape.
This single prediction for the year underscores the importance of continuous improvement and innovation. By embracing optimization, we can ensure that our workforce management practices are robust, resilient, and ready for the future.
Let us embark on this journey of optimization together. With a shared vision and commitment to excellence, we can achieve a better, more efficient workforce management industry. Happy New Year, and may 2025 be a year of unprecedented success for all.
