The economic success of any organization depends on its ability to understand how human capital affects the company's performance and to organize workforce management in an effective way because workers’ experience, knowledge, skills, and innovative activities are the great value to any company. Moreover, the competitiveness of any company depends on strategies and methods of engaging, managing, developing, and retaining the most productive and talented employees.
Organizations, including small businesses, aspire to be more flexible to respond to market changes. Management of human capital or, in other words, talents, skills, and knowledge of the company's staff is the only sustainable source of the competitive advantage of the organization. The goal of any company is fast and cheap designing and producing products or services. Only people are able to produce products (even fully automated production is controlled by humans) and provide services.
Therefore methods of human capital management that help to choose the best employees and improve the efficiency of current employees are indispensable resources for any organization, and workforce management becomes one of the most critical components of the company’s activity. Workforce management includes employees attracting, developing, retaining, and controlling. Creating powerful human resources requires each company to develop a workforce management strategy and methods. New technological solutions are a catalyst for creating new approaches and methods of employee management; moreover, with the growth of information technology, companies have received more advanced methods of labor control and management.
Any business owner needs to be sure that employees meet his/her business necessaries. To do that, they should use different tools that enable facilitating long-term planning with short-term forecasting. Workforce management software that helps to provide labor scheduling, time and work data collecting, leave management, task and work activity management, and time and attendance management is an instrument that enables driving the best return on the company’s labor investment via using workers with the necessary skills where and when they are needed most and are most effective.