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Employment Types & Workforce Structure

What is a Workforce management?

Updated 14 Jan 2026 5 min read

Workforce management (WFM) in Australia encompasses the processes, tools, and strategies used to optimise staff productivity and efficiency. It includes rostering, time and attendance tracking, leave management, demand forecasting, and compliance with Fair Work requirements and Modern Awards.

Understanding workforce management

Workforce management is the strategic approach to optimising employee productivity while supporting compliance with Fair Work legislation and Modern Awards. It combines people, processes, and technology to align staffing with business needs.

Rostering

Creating optimised schedules matching demand with available staff

Time tracking

Recording actual hours worked for payroll and compliance

Leave management

Managing requests, accruals, and balances

Forecasting

Predicting demand to plan staffing levels

Compliance

Ensuring Fair Work and award obligations are met

Payroll integration

Connecting time data to payroll processing

Key workforce management functions

Core WFM functions

Demand forecasting: Predict staffing needs
Schedule optimisation: Match staff to demand
Shift management: Handle swaps and covers
Time and attendance: Track clock in/out
Leave processing: Manage requests and balances
Award interpretation: Calculate correct rates
Labour cost control: Monitor and optimise costs
Reporting: Analyse workforce data

Benefits of effective workforce management

Business benefits

  • Cost reduction: Optimise labour spend
  • Compliance: Reduce legal and audit risk
  • Efficiency: Automate admin tasks
  • Visibility: Real-time workforce insights

Employee benefits

  • Fairness: Equitable shift distribution
  • Flexibility: Easy shift swaps and requests
  • Accuracy: Correct pay every time
  • Mobile access: Manage work on the go

Australian compliance tip

Workforce management in Australia must account for complex Modern Award conditions including penalty rates, overtime, breaks, and allowances. Manual processes are error-prone. WFM software with Australian award interpretation helps support compliance with Fair Work requirements.

Implementing workforce management

Successful WFM implementation involves:

  1. Assess current state: Identify pain points and inefficiencies
  2. Define requirements: Determine essential features and integrations
  3. Select software: Choose a solution designed for Australian compliance
  4. Configure awards: Set up correct Modern Award rules
  5. Train staff: Ensure managers and employees can use the system
  6. Monitor and optimise: Continuously improve based on data

Common workforce management mistakes

Manual processes

Relying on spreadsheets or paper for rostering and time tracking.

Ignoring award complexity

Not properly interpreting Modern Award conditions and penalties.

Poor integration

Not connecting WFM to payroll, creating data silos and errors.

No mobile access

Not enabling staff to view rosters or clock in/out on mobile devices.

Key takeaways

Workforce management encompasses the processes and tools used to optimise staff scheduling, time tracking, and compliance. In Australia, WFM must account for complex Modern Award conditions and Fair Work requirements.

Effective WFM reduces costs, improves compliance, and enhances employee experience. Using dedicated workforce management software designed for Australian businesses ensures correct award interpretation and seamless payroll integration.

Ready to streamline your workforce management? Learn more about how workforce management software can help your business or explore RosterElf's rostering features.

Frequently asked questions

Steve Harris

Written by

Steve Harris

Steve Harris has spent over a decade advising businesses in hospitality, retail, healthcare, and other fast-paced industries on how to hire, manage, and retain great staff. At RosterElf, he focuses on sharing actionable advice for business owners and managers — covering everything from smarter interview techniques and compliance with Australian employment laws, to building positive workplace cultures.

General information only – not legal advice

This glossary article about workforce management provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

Simplify your workforce management.

RosterElf helps Australian businesses manage rosters, track time and attendance, and stay compliant with Fair Work requirements. Try it free for 14 days.

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