What is workforce management software? Features, benefits, and how to choose

A shift worked. A break taken. A schedule change. A time-off request. Each one sets off a chain of events that ultimately affects payroll and labor costs. And each can have a bearing on employee engagement and experience. 

Managing all this manually is time-consuming, and human error opens the door to the potential for missed updates and costly errors. 

This is where workforce management (WFM) software fits within modern HR and operations departments. The right solution can help automate routine tasks, applying company policies consistently throughout the business while keeping workforce data current. 

Here, we’ll explain what workforce management software is and how it differs from HR software. We’ll also explore the features most worth prioritizing so you know what to look for when choosing a solution. 

Key takeaways

• Workforce management software helps organizations schedule employees, track time, manage absences, forecast labor needs, and apply pay rules that support accurate payroll and day-to-day operations.  
• Workforce management works alongside HR and payroll, supplying the hours and attendance data that payroll needs.
• The right WFM solution fits your workforce and supports the labor requirements you operate under. It should also stay closely connected to payroll. 
• As companies grow, a workforce management system can help give managers better control of labor costs and support long-term workforce planning. 

What is workforce management software?

Workforce management (WFM) software manages the day-to-day activities that determine how work gets done. It supports functions like employee scheduling, time and attendance, absence management, labor forecasting, and the application of workplace policies and labor laws. All are essential components that give managers a clearer picture of workforce availability and labor costs. 

Within the realm of HR technology, which includes HR and payroll software, WFM software serves a specific purpose. While HR systems manage the employee lifecycle and payroll solutions calculate pay, WFM software connects the two by capturing hours and other workforce data that powers payroll. 

And when all of the above runs from a single platform and data model, schedule changes, approved time off, hours worked, and related data automatically flow directly into payroll. That can help reduce administrative work and improve payroll accuracy. 

Core features of WFM software

The most powerful workforce management software features let organizations do more with less. It helps them balance staffing needs and labor costs without creating more administrative work. And while the bells and whistles will vary by provider, these core capabilities drive value every day. 

Labor forecasting and planning

Few organizations need the same number and types of employees every day. And staffing needs can change quickly based on sales, customer traffic, production volume, or seasonal demand.  

A labor management system uses historical trends and expected workloads to help managers build schedules that better match demand and budget. This helps avoid the scramble to find coverage when business picks up or to cut back when operations slow. 

Scheduling

Building a schedule is a balancing act. Managers have to consider employee availability, skills, certifications, forecasted demand, and workplace policies, then adjust when plans change – and they often do. 

That flexibility is important to employees, too. Research from Harvard’s Shift Project found that 66% of surveyed service-sector workers wanted more predictable schedules, while 65% were required to keep their availability open for work. 

Employee scheduling software streamlines the process with tools for mobile shift swaps, self-service availability setting, and support for other requirements like meal and rest breaks, predictive scheduling, and other applicable labor rules. 

Time and attendance

When time records are incomplete or inaccurate, payroll problems are close behind. Time and attendance software captures hours worked as employees clock in — through time clocks, mobile, biometric, or geofenced methods — along with breaks and overtime. From there, it applies company rules for rounding, grace periods, approvals, and exception handling before payroll is processed. 

Absence and leave management

Keeping track of employee time off is never as simple as approving a vacation request. WFM software tracks vacation, sick time, statutory leave, and other absences while maintaining leave balances, accruals, and carryovers.  

Many solutions also support requirements like applicable regional leave laws through standardized workflows and documentation. 

Compliance support

Workforce policies can be easier to manage with consistent processes. WFM software helps organizations apply wage-and-hour rules, overtime calculations, union agreements, pay differentials, and shift premiums more consistently. It also tracks audit trails and records needed to help support compliance with applicable legal requirements. 

Why workforce management software matters

For organizations with hourly or shift-based employees, labor is often one of the largest operating expenses. And even small inefficiencies, like overstaffing, unexpected overtime, scheduling gaps, or payroll corrections, can get costly over time. 

Effective workforce planning helps managers align staffing with business demand, giving them greater control over labor costs without sacrificing operational needs. 

The impact can extend beyond the bottom line. Employees are more likely to stay engaged when schedules are communicated in advance and they get paid accurately and on time.  

A Gallup study of more than 18,000 U.S. workers found that 62% did not have high-quality work schedules, while 27% had low-quality schedules. Gallup defines a high-quality schedule as predictable, stable, and offering employees some control. Employees with high-quality schedules reported greater job satisfaction, and Gallup notes that previous research connects poor schedules with higher turnover. 

Workforce management software can help bring that consistency. When scheduling, time tracking, and pay rules run on the same system, employees are more likely to get the predictable, well-run experience Gallup’s research shows they’re missing. 

How WFM software differs from HR software

HR software and WFM systems often work together, but they aren’t designed to do the same things. HR software manages employee information throughout the employment lifecycle, from hiring and onboarding to benefits and performance. 

Workforce management software, by contrast, focuses on the day-to-day realities of work. That includes answering common questions like who’s scheduled, who’s on the clock, how many hours have been worked, and whether those hours are ready for payroll. 

Many organizations use an HCM platform that combines these systems into one platform and one data model. That means employee information, schedules, time records, and payroll all stay together, cutting down the need to move data between separate systems. 

That said, not every organization uses the same setup. Some rely on a standalone human resource information system (HRIS) for core employee records, while others might use a full HCM suite or run WFM software alongside either one.  

Here’s a breakdown of how these systems compare: 
 

Software type	Primary focus	Typical capabilities
HRIS	Employee records	Employee data, organizational information, basic HR administration
HRMS/HCM	End-to-end HR management	HR, payroll, benefits, talent management, and often workforce management
WFM software	Daily workforce operations	Scheduling, time and attendance, absence management, labor planning, demand forecasting, and workforce compliance support

Here’s a simple way to think about it: Questions about who’s working, how many hours they’ve logged, or whether pay is ready to process fall under WFM. Questions about job history, compensation changes, or benefits enrollment fall under HR. 

In a single-platform HCM system like Dayforce, those capabilities work together behind the scenes so managers don’t have to switch between multiple applications to keep workforce data current. 

How to choose the right workforce management system

Every organization manages its workforce a little differently, so the best workforce management software is the one that fits the way your business operates today. You’ll also want it to continue supporting you as your organization grows. 

As you evaluate your options, keep these considerations in mind: 

• Choose software that fits your workforce: Consider factors like shift work, number of locations, union agreements, employment contracts, seasonal staffing, and operations that span states or provinces. The more complex your workforce, the more important it is that the software can accommodate this diversity.  
• Look closely at the payroll connection: Workforce management and payroll are closely linked on the same platform. When schedules, time records, pay calculations, and deductions stay in sync, organizations find they spend less time correcting errors and reconciling data. And as your business grows, that connection becomes even more important. Learn more about how payroll and workforce management get more complex as organizations scale.  
• Evaluate compliance capabilities: Labor requirements vary by location, industry, and worker classification (e.g. hourly or salary). Look for software that helps support your organization’s policies, schedule and pay rules, and recordkeeping requirements.
• Think beyond the purchase price: A price tag can be deceiving. When considering the total cost of ownership, include expenses associated with implementation, training, ongoing administration, and the time spent maintaining separate systems if information doesn’t flow seamlessly between them.  
• Don’t overlook the employee experience: Employees use workforce management software, too. A seamless experience checking schedules, swapping shifts, requesting time off, and viewing time records can encourage buy-in and reduce routine questions for frontline managers and HR.  

Is it time to invest in WFM software?

What happens when a shift changes at the last minute, or a time-off request gets approved but never makes it into the system? If it’s showing up later in a payroll correction or an overtime surprise, that could be a sign that your current workforce tracking processes could be stretched too thin.  

As organizations grow, these issues tend to spread across HR, payroll, operations, and finance. Workforce management software can bring structure to day-to-day processes, giving leaders a clearer view of labor activity and costs. It can also support broader planning efforts by showing how staffing patterns line up with fluctuating business demand. 

Read our workforce planning strategy guide to connect these insights to your longer-term workforce needs. 

Frequently asked questions

What is workforce management software, and what does it do?

Workforce management software helps organizations schedule employees, track hours worked, manage leave, forecast labor needs, and apply pay and labor rules throughout the workweek. It’s the system that connects day-to-day workforce activity with accurate payroll while helping maintain the records required under wage-and-hour laws. 

What core features should a workforce management system include?

When considering core features of a workforce management system, look for scheduling, time and attendance, absence and leave management, demand forecasting, labor planning, and tools that support overtime calculations, pay rules, and recordkeeping. Mobile self-service is also important as it gives employees a convenient way to view schedules, swap shifts, request time off, and review their time records, especially for those frontline workers without a desk. 

What is the difference between workforce management software and HR software or an HCM platform?

HR software manages employee information and core HR processes, while workforce management software focuses on the operational side of work, like scheduling employees, tracking time, and preparing hours for payroll. Many HCM platforms combine both, allowing HR, payroll, and workforce data to operate together on a single platform. 

Is workforce management software different from strategic workforce planning?

Workforce management focuses on today’s workforce by scheduling employees, tracking hours, and managing attendance. Strategic workforce planning looks further ahead by helping organizations anticipate future staffing needs, identify skill gaps, and prepare for changes in demand. Both functions are typically available in workforce management software.  

How does Dayforce combine workforce management with payroll and HR?

Dayforce provides workforce management software, HR, payroll, talent, and analytics on a single platform and data model. For example, frontline managers have the same experience whether they are using talent or WFM. Hours captured through scheduling and time flow directly into payroll, reducing manual data transfers and giving organizations greater visibility into workforce activity before payroll is processed.