How is the tight labor market affecting technological developments at companies?
“Demographic changes are having a profound impact. Now that the supply side of the labor market is growing ever sparser, companies are forced to be more efficient and effective in managing their workforce. The traditional role of the planner is shifting, requiring more sophisticated solutions. At ORTEC, we are constantly developing systems that support this change without any manual intervention on the part of the planner.
In today’s day and age, automation is increasingly permeating business processes, fundamentally rearranging the planning function. In the past, decisions would be made by the planner, but now we have to develop autonomous technology to support these processes. This affects the operational side of business, as well as our duty of care towards employees. Our job is to ensure that technology bolsters not only productivity, but employee well-being too.”
Vincent Lemmens, Executive Vice President of Workforce Management at ORTEC
"Technology helps boost productivity and employee well-being alike."
Raised employee expectations
What are currently the key trends and changes in Workforce Management in different industries?
“We’re seeing that supply chains are changing rapidly: they’re getting shorter, while consumer influence is growing. Consumers don’t just want to decide when their order is delivered, but also expect constant updates about the delivery status. It’s a cross-sectoral development, affecting everything from parcel delivery to travel bookings.
Strikingly, this shift is affecting not only the relationship between consumers and suppliers, but also the work environment itself. Most consumers today are also employees, and they have the same expectations of speed and convenience in their jobs. Employees no longer accept traditional processes where they have to wait ages for a response to a request. They expect to be able to easily request a day off outside working hours and to receive a reply within minutes. Direct communication is becoming the new standard, and companies now face the challenge of integrating these new employee expectations - which have emerged from the modern consumer experience - into their work processes.”
“Control makes employees more satisfied and more productive.”
Satisfied employees are more productive
You mentioned earlier that employee satisfaction might be a solution to staff shortages. Could you explain?
“There are several ways to address labor shortages, and one is improving employee satisfaction. Employers who give their staff a bigger say in their work-life balance often see absenteeism rates plummet, and for good reason: employees who have more control over their schedule and feel their needs and wishes are honored are generally more satisfied and more productive. Healthcare is a shining example of an industry in which capacity management is becoming increasingly important. Besides more efficient schedules, health facilities are broadening their approach to staff allocation.
The progressive strategy adopted by the Finish S Group is a particularly interesting development. They’re a large company and one of the first organizations to give blue-collar staff a say in their schedules, a privilege that had previously been reserved for highly educated workers. This approach paves the way for a better work-life balance and more satisfied employees, especially among the younger generation. During a pilot, S Group saw how the move improved both employee satisfaction and productivity.
Innovations like these can spark a domino effect, with other companies in the region following suit to stay competitive and draw in talent. I expect the first employers to follow suit in the Benelux soon, reaping the benefits of offering self-scheduling to warehouse employees, for instance. The scarcity in the labor market means that other organizations will eventually have to follow this trend or risk reducing their pool of potential employees.”
“There is room for improvement, especially if sectors are willing to learn from each other.”
More efficient schedules and satisfied employees
What are the differences between industries when it comes to Workforce Management and employee satisfaction?
“It's fascinating to see how different sectors deal with these challenges in a variety of ways. In healthcare, for example, about 50% of our clients have already moved closer to adopting participatory scheduling, which gives employees a bigger say in their own schedules. This typically leads to greater satisfaction and lower absenteeism. Other sectors, such as manufacturing, are much more budget-driven and base staff allocation on productivity volumes. Employee satisfaction is often not a priority, resulting in higher absenteeism.
The interesting thing is that both approaches have their advantages, but they can also learn from each other. Manufacturing, for example, is characterized by excellent budget and productivity management, but the lack of employee participation results in higher absenteeism rates. In healthcare, we see exactly the opposite: more participation and lower absenteeism rates, but less efficient alignment of processes and budgets. There’s clear room for improvement, especially if sectors are willing to learn from each other.”
How can AI help improve scheduling and employee satisfaction?
“Leveraging first-party data creates enormous opportunities. AI, for example, can help you recognize peaks and dips in demand, enabling organizations to plan more efficiently while also contributing to employee satisfaction. Imagine submitting schedule proposals to individual employees based on their previous choices. This would make scheduling more flexible and more responsive to staff needs, ultimately leading to higher satisfaction.
In manufacturing, any talk of self-scheduling is quick to elicit skepticism: ‘It’ll never work for us. The factory will be a ghost town on Monday mornings.’ It goes to show how big intersectoral differences can be. While it’s entirely normal to factor in each other’s needs and wishes in healthcare, it’s rather uncommon in manufacturing. However, the benefits are crystal clear, and I believe that more sectors will follow in the future.”
“Multi-year software implementations are disappearing. Companies want flexible solutions.”
Integrated tools
What are the key trends when it comes to software solutions for Workforce Management?
“There’s one clear trend: companies are after modern, cloud-based software that delivers value quickly, without requiring a drawn-out consultancy or implementation phase. Multi-year software implementations are gradually disappearing. Companies want flexible solutions that allow them to quickly control their processes. This applies to all industries, regardless of intersectoral differences.
We’ve found that companies are losing their appetite for projects that last more than 12 months. They want rapid results, not exotic software solutions that are a nightmare to maintain. Our role is to help clients with integrated tools that cover their entire landscape, from scheduling to payroll. This allows us to deliver value quickly and leaves room for further long-term optimization.”
An incremental process
What is the next step for organizations looking to turn today’s challenges into opportunities for the future?
“Organizations need to get a handle on their processes before they can even start thinking about solutions such as AI and optimization. Lots of companies out there, including major organizations, are still using Excel. Although the results can be impressive, it’s a simply inefficient solution in the long run. For starters, Excel is usually not integrated with other systems, such as payroll, which causes problems.
In our experience, controlling basic processes is often the first step. Once companies have that control, it creates room for optimization and improving employee satisfaction. When they’ve gotten the basics right, companies can adopt more sophisticated solutions, such as AI and machine learning, to further refine processes. It’s an incremental process, but a necessary evolution to stay relevant and competitive in a rapidly changing world.”
About Vincent Lemmens
Vincent Lemmens is executive vice president (EVP) of Workforce Management at ORTEC. He graduated in Political Science at the University of Antwerp, but has always been interested in IT. He joined ORTEC as a Junior Sales Professional in 2006, before transitioning into roles such as Manager Business and Managing Director for ORTEC Belgium. He was also appointed to lead the Benelux Business Unit as Director Benelux, an experience he describes as both rewarding and enriching.
In his current role as EVP for the newly formed ORTEC Workforce Management division, he's looking forward to bringing product development and the business closer together to work in a more efficient and scalable way and reduce go-to-market time. He envisions that implementing ORTEC's solutions in an even more scalable manner within the Workforce Management division will help organizations achieve their business goals, while improving the work-life balance for millions of their employees.
