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Increasingly, the line between Workforce Management (WFM) and Talent Management is blurring, as both vendors and organizations integrate aspects of both solutions. WFM is increasingly becoming integrated with other aspects of HCM and is no longer a silo unto itself.

In The Mathematics of HCM – Part 1, I provided an overview of Human Capital Management (HCM) and the two elements comprising a comprehensive HCM solution, namely, Workforce Management and Talent Management, essentially representing HCM as;

                                                HCM = WFM + Talent Management

Part 2 will discuss Workforce and Talent Management in more detail.

As indicated earlier, Workforce Management (WFM) solutions are used to manage a companies hourly workforce, while Talent Management (TM) solutions tend to focus on salaried professionals, but increasingly on both.

WFM solutions enhance core HR functions. They insure that a company’s hourly employees are paid in accordance with company policies, and in compliance with labor laws, as well as automate attendance, scheduling and payroll management, and can provide near real-time labor costing data to management. WFM solutions include:

• Payroll
• Time & Attendance (TAA)
• Benefits
• Workforce Scheduling
• Workforce Analytics

Using our retail example, scheduling helps the retailer ensure that that the right person, with the right skills, is in the right department within the store at the right time based on point-of-sale (POS) data, forecasted demand and employee availability. All five elements of a WFM solution are in turn interrelated. Essentially;

                             WFM = f (Payroll, TAA, Benefits, Scheduling, Workforce Analytics) + business processes

WFM solutions help firms;

• Improve efficiency
• Ensure compliance with labor laws
• Increase labor productivity
• Reduce labor and other associated costs

Talent Management
Talent Management (TM), on the other hand, focuses on all elements of the employee life cycle from identification, recruitment, development and retention. Basically, how to manage an employee's career the moment he/she is interviewed until they leave the company.

Essentially, Talent Management helps companies manage the careers of their employees and ensures, while WFM manages the employee on a day-to-day level ensuring they are properly paid and utilized. But together, they ultimately help companies manage their employees both individually and holistically as a workforce across region, business unit, both nationally and globally.

Talent Management = f (Recruitment, Onboarding, Performance Management, Employee Development, Competency/Skills Assessment, Compensation) + business processes + company programs + mentoring

Bringing the two together
Increasingly, the line between WFM and Talent Management is blurring as both vendors and organizations integrate aspects of both solutions. WFM is increasingly becoming integrated with other aspects of HCM and is no longer a silo in to itself. Companies worldwide are increasing their pursuit and application of HCM, as HCM takes on an increasingly strategic role within organizations. A latter blog will discuss the integration of both Workforce and Talent Management solutions.

Companies such as EntryPoint, a leading Workforce Management consulting firm, can help organizations both develop their HCM strategies and help them deploy enterprise WFM solutions to surpass their business goals. 

And finally, our simple mathematical model describes HCM as:

    HCM = WFM + Talent Management

    where,

    WFM = f (Payroll, TAA, Benefits, Scheduling, Workforce Analytics) + business processes

    Talent Management = f (Recruitment, Onboarding, Performance Management, Employee Development, Competency/Skills Assessment,Compensation Management) + business processes + company programs + mentoring

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