Workforce management software tracks and schedules employees, from shift planning to time tracking to payroll
Workforce management software is a tool that helps businesses organize their staff. It handles scheduling (who works when), time tracking (when people clock in and out), labor forecasting (how many people you need on a given day), and often connects to payroll systems. The software sits between a manager's need to staff a location and an employee's need to know their schedule.
The core job is simple: match the number of workers available to the work that needs doing, and keep a record of the hours they worked. But the software does this across multiple locations, shifts, skill levels, and sometimes hundreds of employees at once — work that would take a manager hours to do by hand.
Most businesses that use it are in retail, hospitality, healthcare, or customer service — places where staffing needs change by the hour and labor costs are the biggest expense. A coffee shop, a hospital, a call center, or a hotel might all use it. A small business with five employees probably does not.
Key Takeaways
- Workforce management software automates scheduling, time tracking, and forecasting labor needs, reducing the time managers spend on these tasks by hand.
- The software typically connects to payroll systems so hours worked feed directly into pay calculations, reducing manual data entry and errors.
- Most systems let employees view their schedule, request time off, and swap shifts through a mobile app or web portal, rather than asking a manager in person.
- Larger businesses use it to predict staffing needs based on historical data — knowing that a store needs more cashiers on Saturday than Tuesday — and adjust schedules accordingly.
How the software handles scheduling and time tracking
A manager opens the software and enters how many people are needed for each shift in the coming week. The software can suggest staffing levels based on past data — if the store was busier on Saturdays last month, it flags that. The manager then assigns specific employees to shifts, or the software can suggest assignments based on who is available and who has the right skills.
When an employee arrives for their shift, they clock in through a mobile app, a web browser, or a physical time clock connected to the software. The system records the exact time. When they leave, they clock out. That record becomes the source of truth for how many hours they worked — no paper timesheets, no manager guessing.
If an employee needs to swap a shift with a coworker, they can request it in the app instead of texting the manager. The manager approves or denies it in the same place. If someone calls in sick, the manager can see in real time who is available to cover and send them a notification.
Why businesses use it to forecast labor needs
A retail store knows from experience that Saturday mornings are always busy and Tuesday afternoons are slow. Without software, a manager has to remember this and schedule accordingly. With it, the system looks at sales data from the past year, identifies patterns, and suggests how many staff members should be scheduled for each day and time.
The software can also factor in upcoming events — a holiday sale, a local festival, a weather forecast — if the manager tells it to. This prevents understaffing (customers wait too long, sales are lost) and overstaffing (payroll costs spike for no reason).
For a hospital or call center, this matters even more. A hospital needs to know how many nurses to schedule based on expected patient volume. A call center needs to know how many agents to have available based on the number of calls that usually come in. Guessing wrong means either patients wait or staff sits idle.
How it connects to payroll and reduces errors
Once an employee clocks out, their hours are recorded in the system. When payroll time comes, those hours feed directly into the payroll software — no manager has to type them in by hand. The system can also apply rules automatically: overtime after 40 hours, different pay rates for different shifts, deductions for breaks.
This cuts down on errors. A manager typing hours into a spreadsheet might misread a number or forget an employee entirely. The software has a record of every clock-in and clock-out, so the hours are what actually happened, not what someone remembers.
Some systems flag unusual patterns — an employee who clocked in twice without clocking out, or a shift that is missing a clock-out time — so the manager can investigate before payroll runs.
What data the software collects and stores
The system records when each employee worked, for how long, and sometimes where (if the business has multiple locations). It stores their schedule, their availability, their job title or role, and often their wage or salary. Some systems also track performance metrics — how many customers an employee served, how many calls they handled — if that data is fed in from another system.
This data is usually stored on the software company's servers, though some businesses buy versions that run on their own computers. Either way, the data is sensitive: it shows when employees are at work, how much they earn, and sometimes their home address or phone number.
Most workforce management software companies have privacy policies that explain what they do with this data. They typically use it to improve the software (spotting patterns in how businesses schedule) but do not sell employee information to third parties. However, the policy depends on which company makes the software, so it is worth reading if you work somewhere that uses it.
Common workforce management software used by businesses
Some of the most widely used systems are Kronos (now part of UKG), ADP Workforce Now, Workday, and Deputy. Smaller businesses might use Homebase, When I Work, or 7shifts. Each one has different features and price points — some are designed for retail, others for healthcare or hospitality.
Many of these systems started as time-tracking tools and added scheduling and forecasting over time. Others started as scheduling tools and added time tracking. The features overlap a lot, but the user experience and cost can vary widely. A business usually picks based on the size of the company, the industry, and the budget.
Some businesses build their own scheduling system or use a spreadsheet, especially if they are very small or have unusual staffing needs. But as a business grows, the manual work becomes too much, and software becomes worth the cost.
What managers and employees see in the software
A manager sees a calendar view of the coming weeks, with each shift and who is assigned to it. They can see who is available, who has requested time off, and who has called in sick. They can also see reports: total hours by employee, labor costs by day, whether the store is over or under budget for the week.
An employee typically sees their own schedule in a mobile app or web portal. They can see their shifts for the next few weeks, request time off, swap shifts with coworkers, and sometimes see their hours and pay. They do not see other employees' schedules or pay rates, and they cannot change their own hours — only request changes that a manager approves.
Some systems let employees set their availability (I can only work evenings) or their preferences (I prefer Saturday mornings), and the software uses that when suggesting schedules. This can reduce the back-and-forth between manager and employee.
Frequently Asked Questions
Does workforce management software track where employees are during their shift?
Most systems track when someone clocks in and out, but not their location during the shift. Some versions can use GPS on a mobile phone to confirm an employee is at the right location when they clock in, especially for businesses with multiple sites or field workers. Whether this happens depends on what the business sets up and what the software allows.
Can employees see their coworkers' schedules?
Usually not. Most systems show an employee only their own schedule and allow them to see who is working the same shift (so they know who to coordinate with), but not the full schedule for everyone. Managers see the full picture.
What happens if the software goes down or the internet is out?
If the system is cloud-based and the internet is down, employees may not be able to clock in through the app. Most businesses have a backup — a physical time clock, a phone number to call, or a paper sheet — so work does not stop. When the internet comes back, the backup data syncs with the software.
Does this software cost a lot?
Cost varies widely. Small businesses might pay $50 to $200 per month for a basic system. Larger businesses with hundreds of employees might pay thousands per month. Most charge per employee per month, so the cost scales with the size of the business.
Can employees request time off through the software?
Yes, most modern systems have a mobile app or web portal where employees can request time off, and the manager approves or denies it in the same place. Some systems also let employees see how much paid time off they have left and when blackout dates are (times when time off is not allowed).