Rising Popularity of Automatic Employee Scheduling Software
Published: 25/06/2022
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This article serves as an informative piece for managers and owners of small businesses whose employees work shifts. We will discuss automatic employee scheduling software, its benefits, and how to select the right solution. Additionally, we will provide practical examples illustrating its potential to transform your business.
If you’re part of an industry that relies on the shift work model, you’ve undoubtedly faced the challenge of compiling the rota. Whether writing it out manually (it still counts as manual even if you send it via digital channels) or creating schedules in Excel documents, it’s a lengthy process with numerous opportunities for things to go awry. When considering factors such as staff being on holiday, specific preferences that team members need addressed, work time limitations (if applicable), and many others, human error is bound to happen.
In simple terms, modern businesses cannot afford to waste time on mundane tasks like scheduling, nor do they have the luxury of errors and miscommunications that can lead to staff no-shows or seriously jeopardise talent retention. Fortunately, we are living in an age of technology and automation. Therefore, the dominant trend observed in 2022 is employee scheduling software that automates the rota-building process for you.
As a cloud-based software, it is generally easy to access across various devices and provides visibility for the entire team. The information you input, such as annual leave or the number of hours an individual employee is required to work on a selected basis, will then be used to manage all the tedious tasks for you. Within minutes. Sounds great, doesn’t it? So, let’s delve deeper into it.
At first glance, shift scheduling appears simple - you have operational times and a number of employees available, so you simply bring them together. Unfortunately, some businesses do just that. Typically, they do not last long, as employee scheduling is, in fact, an intricate mini strategy that should be designed to drive ROI.
As we’ve highlighted above, there’s more to employee scheduling than merely putting together a rota. Holiday requests, general availability, cost-effectiveness, labour demand, and a multitude of other factors must be included in a precise calculation for the schedule to be efficient. In addition to enhancing performance, it’s also a means of keeping employees satisfied, as well-structured shift scheduling provides clear and straightforward processes that are easy to follow.
Naturally, something that demands considerable thought requires time—a luxury that modern companies often lack. This is where dedicated automation-focused technology comes into play. Automatic employee scheduling software is a workforce management solution that takes over the tedious task of shift scheduling. It not only simplifies the process of generating schedules while considering various factors but also offers additional functionality.
This will include employee time tracking, the estimation and management of labour costs, time-off management, reporting on hours worked against deliverables, visibility and management of shift swaps, and much more. Different vendors will offer various sets of features, and ultimately, you will need to select those that best meet your needs. However, we shall discuss this topic in greater depth later in this article.
Naturally, because some solutions are costly, a small startup owner might hesitate to adopt a scheduling tool. If the budget is tight, why invest in software that seemingly accomplishes what can be done manually? Beyond the obvious ‘it frees up the time’ argument, automated employee scheduling software offers a wealth of benefits. While it is undoubtedly a convenience for large enterprises (consider fast food chains and the like), it can be a lifesaver for small businesses. Below, we shall outline the key advantages this software provides to its users.
Companies with a shift system in place always face the risk of being either overstaffed or understaffed. Predicting demand and aligning staff accordingly can sometimes prove challenging—particularly when managing their availability, hours required or already worked, and other factors. In other words, achieving the right balance is difficult and can lead to repercussions that impact how your business operates. For instance, scheduling fewer employees for a busy shift may result in delays, increased stress for your workers, and a higher risk of errors. Conversely, having more staff on duty than necessary will incur unnecessary labour costs. Either way, you will ultimately find yourself at a loss.
One of the key advantages of automatic employee scheduling software is that it helps you avert such situations. Most solutions are designed to learn about your business the more you use them and, as a result, they become very intuitive when matching staff to demand. This alone can save you between 5% and 10% of labour costs and ensure you have an optimal number of workers on-site at all times. While 10% may not appear significant, we suggest converting that into numerical values to gain insight into the precise amount you might be saving.
Another of the advantages of scheduling software is that it can simplify payroll procedures. Paying employees based on hours worked can be particularly challenging if the rates vary according to location, time, or other factors—but this is easily managed with a centralised view. While timesheets are typically used to calculate pay, and solutions such as Timesheet Portal also allow for applying varying rate conditions, they are completed by employees AFTER their shift. This means that employers cannot accurately forecast workforce costs in advance.
An automatic employee scheduling software, on the other hand, simplifies the calculation of how much money will be spent per shift across different employees. It is also a convenient tool to remind bookkeepers in advance when it’s time to pay, allowing them to begin organising the process. However, what truly makes payroll effortless is the integration of shift scheduling software with accounting systems. This integration saves a significant amount of time and effort that would be spent manually transferring data from one source to another, streamlining the process to just a few clicks. As information is sent directly from one tool to another, it also reduces the risk of human error that could lead to incorrect payments.
Sudden shift changes arise for numerous reasons: emergencies, lack of transport, and so on. This can be a stressful experience for both workers and employers, particularly when it occurs with little notice. Designated scheduling software can be invaluable in such situations as it provides real-time updates regarding shifts. For instance, if an employee calls in sick just hours before their shift, the entire team will be notified. This presents an opportunity for someone else to step in and take that shift. Alternatively, it can inform the employer about the availability of other staff and designate another worker to cover. Just as everyone receives a notification for that, the team would also be quickly alerted to any schedule or availability changes. The key point is that all shift-related communications would be centralised on one platform, streamlining the process and fostering alignment rather than relying on threads of texts, emails, or calls.
Depending on the solution, you can grant your workers the autonomy to build their own schedules. Some scheduling software includes modules such as self-scheduling, rescheduling, or filling in for open shifts. As all information regarding shifts is stored in one location, there is no risk of double-booking, which would lead to overstaffing. Additionally, you can set a limit on how many hours each worker is entitled to, preventing situations where one employee takes over all shifts, leaving others with none. Similarly, you can establish rules for the maximum and minimum number of employees required on different days. Overall, you provide your workers with the flexibility to manage their time in a way that works best for them.
If you’ve made up your mind and are eager to invest in employee scheduling automation software, hold your horses. As with everything popular, software developers worldwide are currently trying to ride the trend, and the market is already quite saturated. To select a solution that meets your needs and becomes an ROI-generating machine, several factors require consideration.
Many industries utilise the shift work approach, and they can differ significantly. Although at first glance, one might think that the model itself operates similarly in every environment, it is the distinctions between sectors that necessitate varied functionalities to support it. For instance, while both construction and hospitality work on a shift basis, the characteristics they possess are vastly different. Since vendors aim to sell their solutions, it is uncommon to specify which industry is being catered to. While a niche solution could be quite popular within a specific market, doing so would limit the provider’s reach and result in reduced income. Therefore, the only way to determine whether the tool is suitable for you is to thoroughly scan its features and, if possible, conduct a trial by signing up for a free trial.
However, it’s easy to get bedazzled by well-crafted feature copy or by a skilled salesperson. Therefore, you should compile a list of must-haves and nice-to-haves before you even start researching potential solutions. Are there any particular factors within your industry or company that aren’t found elsewhere? For instance, if workers in your sector are only permitted to work x hours per week, that would be a good example. If possible (and relevant), discuss the needs with others in your company, as they may approach it from a different perspective. Having a clear idea of what you’re seeking will help you choose a solution that caters to your specific needs and keeps you on course when you come across a tempting and well-presented offer that isn’t precisely what you’re after.
We’ve briefly touched upon integrations when discussing quicker payroll. However, accounting solutions are not the only tools to which shift scheduling software can be linked. We always recommend building a digital toolbox for more streamlined business procedures, and since an auto-scheduling tool is a great addition, you need to ensure it can be integrated with your other solutions. When different solutions are connected, their automation, reporting, and data collection features expand. In turn, this enables you to identify new opportunities and refine your workflows into quicker and smoother processes.
We recommend seeking software that integrates with the tools you already have, rather than choosing one that requires you to onboard additional solutions, unless you are just starting out and will eventually need them. A word of advice is not to be disheartened if the tool that is otherwise perfect in every aspect doesn’t seem to integrate with one or more of your existing software. Consider reaching out to the provider—sometimes less popular or overly niche solutions are not listed as available integrations, even if they are. Moreover, if you are a suitable match, the software provider may be open to collaborating with you on a compromise and developing a custom API to fulfil your requirements.
Depending on your needs, adopting a standalone employee scheduling tool may not be the best approach. Allow us to elaborate. There is a market for solutions specifically designed for this function, each offering a distinct set of supporting features. However, there is also a broad range of platforms that do not primarily focus on shift scheduling but instead provide it as an additional function. While specialised software is likely to be more cost-effective, a multi-feature tool may be utilised for various aspects of your business and across different teams. Nevertheless, there is no definitive right or wrong choice, as the option that will benefit you most depends entirely on your specific needs.
The starting point should be determining the importance of the function to you. Is it the one thing your business needs to run like a well-oiled machine, or is it among several things you need to acquire? Is this an urgent must-have, or do you already have a system in place and are merely looking to replace it? Another factor to consider is your existing toolset and which solution would integrate better with it. While a multi-faceted platform is likely to offer a wider selection of potential automation options, not every business requires that. Ultimately, use your goals as a guide. We suggest writing out the processes you currently have in place to identify whether they require additional automation and what that might be. If the majority of it relies on an employee scheduling tool, stick to specialist software. However, if there is a more diverse demand, you should seek out a solution that preferably includes all the functionality you’ve outlined as necessary.
There are many industries that should utilise shift scheduling tools. While the most common ones are hospitality and construction, several sectors that we might not consider also operate on a shift basis, such as libraries. In fact, according to a case study published by Business Management Central, when a library employs automatic employee scheduling software, it can significantly reduce IT and administrative work, allowing the budget to cover more important needs. In the study, the library had already been utilising scheduling software; however, it was outdated and designed to run on Microsoft Windows 95.
Although intended as a tool to support the efforts of the managers, it brought more problems to the forefront—especially for the IT personnel. Tight city budgets were also placing additional strain on the library by limiting the number of hours it could operate per week, resulting in a 25% reduction in the workforce—yet even with that, the total remained at 91 employees. Keeping this in mind, on average a manager would spend 35 hours a week; a new, modern solution, on the other hand, reduced this to 25. Moreover, the IT staff were no longer called in as frequently to resolve technical issues, thanks to a modern, more self-sufficient user interface of the new solution, as well as its compliance with current technological standards.
Regardless of the industry, modern companies can no longer afford the tedious task of shift scheduling. In today's fast-paced and competitive business landscape, every minute wasted can significantly impact performance. Furthermore, the manual process of employee scheduling is prone to human errors that result in miscommunication, a reduced workforce, financial losses, and potential legal issues.
The solution is simple: adopting automated employee scheduling software that will handle the process for you. The cherry on top is that while the tool will perform precisely what you would hire it for, it often includes additional functionality to further enhance your business productivity. Depending on your preferences, it may form part of a larger platform rather than a standalone solution. Furthermore, to improve its functionality, the shift scheduling tool can be integrated with a variety of solutions you may already be utilising.
We are steadily approaching a point where businesses risk everything unless they embrace automation. Employee scheduling is just one of the processes—quite niche, in fact—for companies to digitise and grow. The beauty of automation lies in its ability to combine tools designed to manage different business elements, potentially unlocking new, highly effective, and seamless workflows.
Are you keen to explore alternative methods for improving your business performance through automation? Timesheet Portal provides some outstanding features.