September 2012 Workforce Management for the SMB: Big Results for Small and Medium Businesses Sector InsightSmall and medium businesses (SMBs) are at the heart of economic growth Aberdeen’s Sector Insightsfor many communities and regions. The SMB market, defined as provide strategic perspectiveorganizations with 1,000 or fewer employees, has dynamic needs and fewer and analysis of primaryresources to meet them than large organizations. This Sector Insight looks research results by industry,at how workforce management solutions help the SMB improve market segment, or geographyproductivity and business results, while relieving some of the administrativeand tactical burden previously associated with such efforts. Based on datacollected between May and August 2012 from 174 organizations, 81 ofwhich had fewer than 1000 employees, this document offers insights andrecommendations that will help companies succeed through betterworkforce management.The Big Impact of Workforce Management Sector DefinitionIn the past, SMBs may have thought that only large companies needed orcould afford workforce management solutions. They may also have For this study, Aberdeenimplemented a Core Human Resource (HR) information system to track defines small and mediumemployee data, or an automated payroll solution, and considered it businesses (SMBs) as thoseworkforce management. However, true workforce management, for any with 1,000 or fewer full-timesize organization, involves a combination of integrated Core HR, payroll, employees.and time and labor management solutions. Many SMBs today are looking toworkforce management automation and labor data integration to drivebetter business results, as Figure 1 illustrates. DefinitionFigure 1: Challenges Driving Workforce Management Aberdeen defines workforce management as inclusive of Core HR, payroll, time and attendance, scheduling, and absence management Source: Aberdeen Group, September 2012This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.