How to Choose Labour Forecasting Tech to Get the Best ROI
Let’s be honest: rostering staff when demand is unpredictable can sometimes feel like throwing darts blindfolded. You’re relying more on instinct than strategy, and the consequences of getting it wrong are time waste, missed shifts, stressed employees, frustrated customers, and sky-high labour costs.
The solution? Using labour demand forecasting software and other workforce planning tools to predict your staffing needs with pinpoint accuracy. This isn’t about crystal balls or tarot cards. We’re talking about powerful software that analyses your historical data, factors in variables like seasonality and events, and helps you optimise your staff schedules to perfection.
With these tools, businesses like Juice Press and Winter Wonderland have been able to save thousands on labour costs year-over-year.
But with so many options on the market, how do you choose the right one that offers the best return on investment (ROI)? We’ll break down what to look for when selecting demand forecasting software, ensuring you not only manage costs but also optimise workforce efficiency
Start with the Basics: What Are Your Needs?
Before diving into features and tech specs, it’s essential to define what your business truly needs. Consider factors such as:
The size of your business: Are you a small business with a handful of employees or a large enterprise with complex scheduling needs?
Your core business challenge: Are you primarily trying to optimise rostering to reduce labour costs, or do you need a more comprehensive solution that integrates workforce planning and labour cost management? Identifying your core challenges—whether it's managing peak times, reducing overstaffing, or improving employee engagement—is the first step to narrowing down your options.
Your budget: How much are you willing to invest in labour forecasting technology?
Your current rostering process: Are you relying on outdated spreadsheets or clunky legacy systems?
Your industry: Do you operate in a fast-paced environment with fluctuating demand, or is your business more predictable?
Labour forecasting and workforce optimisation tools come with different strengths, and not all software is created equal. By starting with your business-specific needs, you can ensure that you’re investing in a solution that genuinely impacts your bottom line.
2. Look for Essential Features
Not all labour forecasting technology is created equal. When evaluating your options, prioritise the following must-have features:
Comprehensive Data Integration: Labour forecasting is all about leveraging data. The more comprehensive and precise your data inputs, the better your forecasts will be. Effective staffing demand forecasting software should seamlessly integrate with your existing systems - like point-of-sale (POS) systems and even foot traffic counters. This integration allows you to make accurate staffing decisions based on a wide range of demand signals, from sales data to events and even weather patterns.
Integrating multiple data sources improves the accuracy of your labour demand forecasts. It also enables you to predict potential disruptions, respond proactively to spikes or dips in demand, and align staffing levels accordingly. When evaluating different options, look for software that offers easy API connections and a history of successful integrations in your industry.
Automation and AI Capabilities: Automation is key to achieving ROI with workforce planning tools. No one has time to manually enter data or make repetitive rostering decisions. The software should be able to generate optimised staff rosters based on predicted demand, employee availability, and skills and free up managers’ time by reducing human error.
Modern solutions use AI to predict future staffing needs based on historical trends, real-time data, and market shifts. For example, if your business experiences a spike in demand every Friday evening, AI-powered workforce optimisation tools can automatically schedule additional employees for that time. This ensures that you’re neither under nor overstaffed, saving costs and improving operational efficiency.
By focusing on automation, you can dramatically reduce the time spent managing rosters and focus on strategic decision-making that moves your business forward.
Real-Time Reporting and Forecasting: Labour cost management software must provide insights into key metrics such as labour costs, productivity, and employee engagement. This allows managers to make informed decisions on the fly - such as reallocating staff when demand drops or ramping up rosters when it increases unexpectedly. Real-time reporting gives you insight into how your workforce is performing right now, which is critical for adjusting on the go.
For example, if an unexpected rush hits your retail store, having access to real-time data allows you to quickly bring in on-call staff, ensuring that customers are served efficiently without long waits or frustration. On the flip side, if demand is lower than anticipated, you can reduce hours or send staff home early, keeping your labour costs under control.
The more responsive your staffing demand forecasting software is, the better equipped you’ll be to handle the unpredictable nature of hourly-based industries - and that directly impacts your ROI.
Built-In Compliance Features
The labour forecasting software should provide insights into key metrics such as labour costs, productivity, and employee engagement. Compliance-friendly features are also a must. In heavily regulated industries, simplifying compliance with labour laws is crucial—and it’s also a big potential cost if you get it wrong.
Workforce optimisation tools with built-in compliance features can help you manage shift lengths, overtime, and mandatory breaks according to the latest legislation. This helps protect your business from costly fines and builds employee trust and satisfaction, contributing to higher retention rates.
When evaluating software options, consider whether they provide automated alerts when a scheduling issue might put you out of compliance. Proactive compliance management can reduce the time and energy spent navigating complex labour laws.
Employee Engagement Levers
Employee engagement and satisfaction are often overlooked when discussing ROI, but they play a massive role in workforce efficiency. Workforce optimisation tools that offer features like mobile schedule access, flexible shift swapping, and clear communication channels contribute significantly to employee satisfaction. Happier employees mean reduced turnover, lower recruitment costs, and a more motivated workforce.
Labour demand forecasting software that considers employee preferences while still meeting business demand helps create a more dynamic and engaged work environment. Features like automated shift reminders, self-service options for time-off requests, and real-time updates can drastically improve employees' feelings about their roles, reducing turnover costs and improving overall productivity.
Labour Cost Management Metrics
Effective labour forecasting is not just about matching staffing levels to demand; it’s also about managing labour costs intelligently. The right workforce planning tools will offer robust labour cost management features that help you track spending in real-time, compare it to budget projections, and identify any variances.
Labour cost management software that provides clear, actionable insights into spending helps you maintain control over your payroll and avoid unpleasant surprises. This might include features like overtime monitoring, budget vs. actual reporting, and the ability to break down costs by location or department. A laser focus on controlling costs can make a huge difference in your ROI over time.
3. Evaluate User Experience
The most powerful labour forecasting software is useless if it’s too complicated to use. Look for a solution that is intuitive and user-friendly
Easy-to-use interface: It should be easy to navigate, even for non-technical users. Managers should be able to make adjustments and review forecasts without needing extensive training.
Customisable dashboards: The software should allow you to tailor dashboards to your specific needs.
Scalability: Scalability is another crucial factor. Your needs will evolve as your business grows, so the labour demand forecasting software you choose should be flexible enough to scale alongside your operations. Look for features like modular add-ons or tiered pricing, which allow you to start with core capabilities and add advanced features as your requirements expand.
Excellent customer support: Your labour forecasting tool should offer responsive and helpful customer support 24/7 and be there when needed.
4. Calculate the ROI
Finally, to truly choose the right labour forecasting technology, you need to understand the potential ROI. Look for a solution that can help you:
Reduce labour costs: By optimising staff rosters and minimising overtime
Improve employee engagement and reduce costly turnover: By offering flexibility and transparency
Boost productivity: Ensure you always have the right people in the right place at the right time.
Increase profitability: By streamlining your operations and improving your bottom line
For example, Deputy’s software allowed Winter Wonderland to reduce its labour costs by 12%, and Honest Burgers saw an improvement in how it used staffing budgets during peak times.
Considering all the areas a demand forecasting tool can add value: better schedules, happier employees, more efficient administrative processes, and most importantly lower costs, the right software won’t just pay for itself; it will continue to drive profitability and operational success as your business grows.
Conclusion: Finding the Right Fit for Your Business
Choosing the right labour forecasting technology is a big decision. But by following these tips, you can find a solution that will help you optimise your workforce, reduce costs, and boost your bottom line.
As labour costs continue to rise and market dynamics shift, your business needs technology that enables it to stay competitive. With comprehensive labour demand forecasting software, and workforce optimisation capabilities, you can manage staffing proactively, optimise costs, and ultimately boost profitability. The choice is yours - just make sure it’s one that sets your business up for long-term success.