Work It Out Oct 1, 2007 12:00 PM
, by William Atkinson
Centralized or decentralized?
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With the advent of browser-based WFM technology, retailers have two options: a headquarters-hosted system, or a store-based system.
Until a few years ago, most WFM systems were located within stores, call centers, and other work locations, where personnel used technology that was client server-based. That is, each store maintained an insolated system, and managers created their own schedules, so headquarters rarely had access to what was going on at the store level.
The IHL report notes that, in the past, with batch systems stores would report data to headquarters, which would analyze it, and make decisions based on information that was hours, days, or even weeks old.
Today's real-time environment allows information to be transferred instantly. As such, retailers can arrange to have their WFM systems hosted at headquarters or on in-store servers. IHL research has found that, while more than half of Tier 1 retailers had store-based systems in 2005, the trend was rapidly changing to headquarters-hosted scenarios.
Headquarters-based systems provide more functionality with less complexity. Browser technology advancements also enable managers to access data from anywhere — at headquarters, in stores, or from remote locations.
With the headquarters-hosted technology, personnel can use the Web to move schedules and other functions back and forth between headquarters and the stores and other locations. With the Web-based systems, the software is in place at headquarters, but can be accessed by authorized store-level personnel as needed.
For example, store managers can still make scheduling changes as needed, but now the headquarters instantly knows about the changes. In addition, headquarters can send out alerts if certain stores are exceeding their labor budgets. Headquarters can also set scheduling criteria to ensure uniformity and fairness.
“Almost universally, we are seeing the technology being deployed as a headquarters model,” says SD Retail's Madigan. “The latest development has been centralized processing. Before, it was done in the stores, where the stores generated schedules.”
Another benefit is economies of scale for the IT department and increased data that provides knowledge of how schedules can perform better and how merchants can improve productivity at store locations. “A headquarters-hosted model also allows for closer monitoring of the link between customer activity and the things that drive sales, particularly staffing,” Madigan adds.
As with most software systems, it's hard to get information on costs. How much you pay will depend on the type of system, the number and complexity of applications introduced, the type of business, the number of employees, the number of locations, the types of locations, where employees are located, and so on.
But Gartner's Daikoku notes that in most cases, vendors charge a price per seat or per user. “Cost may also be affected by the total number of employees who use the self-service features.” She says that maintenance costs tend to run from 18% to 20% a year. “For some large retailers, a system may run north of $1 million a year, including maintenance.”
Seeking a supplier
According to Daikoku, merchants want store task management capability delivered in an integrated Web-based time and labor solution. Several vendors have systems with integrated time and labor capabilities, including task management, but few retailers have deployed a complete system from a single vendor.
When selecting a vendor, Daikoku recommends looking for the following capabilities:
Configurable rule engine: It should be able to configure business rules to fit the retailer's environment (for example, California-mandated meal breaks, overtime, union rules, etc.).
Store task management: This function provides corporate visibility and enables event management of store-level execution of tasks, which helps to streamline workflow and generate exception alerts and store progress reports.
Automated learning: An educational or e-learning module to enhance training opportunities for the labor force, as well as to keep track of specialized skills/certifications for certain workers.
Functionality fit: This offers the ability to schedule and manage time for employees who have multiple roles within the same shift, and enables the retailer to share pool labor in multiple locations or for multiple retail banners.
Employee self-service: Enables associates to access schedules and assignments on-premise and off-premise, and also enables associates to swap shifts, check timecards, and view and request time off.
