Global Workforce Management Market By Component Type (Software and Services), By Deployment (On-Premises, Cloud, and Hybrid), By Enterprise, By Solution, By End-Use Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Workforce Management Market was valued at USD 8.3 billion and is expected to reach USD 19.8 billion between 2023 and 2032, this market is estimated to register the highest CAGR of 9.3%. Workforce Management (WFM) is a way for employers to strategically allocate employees and resources, track attendance, and comply with ever-changing laws and regulations in the workplace.

Workforce management is a multifaceted technology that enables great change and great returns in terms of revenue and convenience of use, and still evolving today. Increased use of mobile devices is expected to have a significant impact on this sector, as many businesses are interested in improving their mobile capabilities. Furthermore, as businesses around the world move to digital surveillance at a rapid pace, the demand for absence and leave management solutions is expected to grow.

Driving Factors:

Significant Applications of Workforce Management in HR Management Processes Driving the Market Growth

The growth of the market is propelled increasing use of modern methods integrated with management technology and Human Resources. Workforce management software(WFM) has advantages like acting as a one-stop solution for various HR management processes like performance management, documentation, and recruitment.

New Product Offering with Integration of Artificial Intelligence Aid to Workforce Management Market

Growing demand for automation across industries, along with increasing adoption of cloud-based solutions, is one of the key factors driving the growth of this market. With an increasing emphasis on workforce optimization, organizations are widely using WFM solutions to manage time and avoid task duplication.

Furthermore, cloud-based solutions reduce physical hardware requirements, which also drives the adoption of these solutions in organizations. The platform also reduces overall operating costs and improves infrastructure scalability by providing access to different endpoints. Furthermore, the increasing penetration of smartphones, along with the popular Bring Your Own Device (BYOD) trend, is also having a positive impact on the market growth.

With the implementation of WFM solutions, employers can track the progress of tasks at any time while providing employees with secure access to official files. Other factors include rapid urbanization, especially in developing economies, increased awareness of the benefits of WFM, and extensive research and development (R&D) activities in the region.

The IT sector is expected to drive the market in the coming years. The growth of the market is propelled increasing use of modern methods integrated with management technology and Human Resources. Workforce management software(WFM) has advantages like acting as a one-stop solution for various HR management processes like performance management, documentation, and recruitment.

Restraining Factors

Lack of Awareness Regarding Applications of Workforce Management in Small Enterprises Restraining Market Growth

The low awareness of the adoption of workforce management software in developing economies, especially in small and medium enterprises, can hamper the growth of the global market during the forecast period.

COVID-19 Impact Analysis

Closure of Industries Resulted in Negative Impact on Workforce Management Industry

The COVID-19 outbreak resulted in the closure of industries like manufacturing, healthcare, and IT industries. That resulted in employees working from home. Thus COVID-19 resulted in less demand for workforce management industries.

Component Type Analysis

The services Segment is Dominant in Workforce Management

Based on component type, the market for workforce management is classified into software and services. The service segment is dominant as it comprises analytics and resource management. This segment is expected to hold lucrative growth during the forecast period.

Workforce management services are the way in which employers strategically allocate individuals as well as resources, and track their attendance, to comply with constantly changing workplace laws and regulations. Workforce management services include statistical forecasting and historical analysis to determine common workforce trends for the organization. Services are expected to exhibit significant growth in the forecast period owing to the adoption of workforce management software.

Workforce management software helps organizations streamline and automate the process that manages workers’ time, organizes and deploys the labor force efficiently, manages self-service, and ensures employee safety.

Deployment Analysis

On-Premises with Largest Market Revenue Share

Based on deployment type the market is classified into on-premises, cloud, and hybrid. The on-premises segment was dominant in the market with the largest market revenue share of 38% in 2022. On-premises deployments are easily accessible by clients due to their physical presence in data centers.

The on-premises deployments minimize reliance on the internet and also help in the protection of data from fraud and cyber-attacks. These also help in reducing monthly costs and resolving various IT-related issues. Financial services and banking industries store the financial information of their customers. Hence, the demand for on-premises deployments in such industries is increasing.

The cloud deployments segment is expected to grow at the fastest CAGR during the forecast period due to the increasing connectivity of data through multi-cloud environments. Several organizations are adopting cloud services due to significant benefits such as enhanced collaboration, scalability, and cost-effectiveness.

Enterprise Analysis

The large Enterprises Sector is Dominant

By enterprises market for workforce management is classified into small and medium enterprises and large enterprises. Workforce management in large enterprises is dominant as in large enterprises there is a significant need for workforce planning which enables sustainable organizations’ performance through better decision-making about the future individual needs of the business. Small enterprise business is done on a small scale, so workforce management is not much applicable in small and medium enterprises.

Solution Analysis

Workforce Analytics Segment is Dominant

Based on the solution, the workforce management market is classified into workforce scheduling, time and attendance management, workforce analytics, leave and absence management, task management, performance and goal management, fatigue management, and others. The time and attendance management segment was dominant in the market with the largest market share in 2022.

The time and attendance management systems in all organizations ensure the accuracy of employees’ time and attendance, pay, and absence requests. It also allows businesses a greater degree of control over labor costs. The task management segment is expected to grow at the fastest CAGR during the forecast period.

Task management is the process of monitoring project tasks from start to finish at various stages. This includes proactively making decisions about tasks. Task management helps in providing fatigue management applications and also helps in employee capabilities management. A leave management system helps record, manage, and track employee leave requests.

End-User Industry Analysis

IT and Telecommunication Sector is Dominant

By end-use industries market for workforce management is classified into IT and telecommunication, BFSI, government, healthcare, education, manufacturing, retail, and others. The IT and telecommunications industry segment was dominant in the market with the largest market share in 2022. This sector has the largest workforce compared to other industries. As a result, the demand for workforce management solutions is more in such industries.

BFSI is expected to grow at the fastest CAGR during the forecast period. The consequences of inaccurate scheduling cause a direct impact on the health of patient care and financial performance. Thus demand workforce management solutions is increasing in healthcare industries. The demand for workforce management solutions is increasing in manufacturing industries to make a balance between labor productivity and costs of labor. WFM solutions in education offer to schedule non-pupil days such as staff insets and training days for teachers.

Key Market Segments:

Based on Component Type

• Software
• Service

Based on Deployment

• On-Premises
• Cloud
• Hybrid

Based on Enterprises

• Small and Middle Enterprises
• Large Enterprises

Based on Solution

• Workforce Analytics
• Workforce Scheduling
• Time and Attendance Management
• Performance and Goal Management
• Leave and Absence Management
• Task Management
• Fatigue Management
• Others

Based on End-Use Industry

• IT and Telecommunication
• BFSI
• Government
• Healthcare
• Education
• Manufacturing
• Retail
• Others

Growth Opportunities

Introduction of Artificial Intelligence and Internet of Things in Workforce Management Expected to Create Large Opportunities in Market

The workforce management market is expected to grow during the forecast period and experience new expansion areas due to the introduction of technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT). Implementing the Internet of Things facilitates the process of tracking and analyzing relevant employee data, thus helping to gain a deeper understanding of employee work patterns in workforce management.

The workforce management industry is also boosted due to growing applications in the healthcare, manufacturing, and IT industries. With the growing need for skilled and talented employees to stay competitive in the market, the demand for WFM solutions is expected to increase during the forecast period.

Latest Trends

One of the main areas on which HR departments from various businesses are concentrating on standardization and streamlining of labor-related activities, therefore key companies are adopting WFM solutions for effective business. Several companies in workforce management focus on business strategies such as joint ventures, collaboration, and acquisition to obtain a competitive edge in the market.

Regional Analysis

North America Region is Dominant in Global Workforce Management Market

North America region is dominant in the global workforce management market with the largest revenue share of 32%. The growth of the market in the region is attributed to the increasing adoption of cloud infrastructure by large enterprises. Also increasing productivity and labor efficiency which help HRM solutions for task management, and attendance management process the demand for workforce management solutions is increasing. Increasing industrialization in developed countries such as the United States and Canada drives the market growth.

Asia Pacific region is expected to grow at the fastest CAGR during the forecast period due to expanding manufacturing industries in emerging economies such as China, Japan, and India. Companies in the Asia Pacific region started rapidly adopting WFM solutions to improve employee and company productivity, and performance. Also increasing adoption of cloud technologies is expected to drive market growth.

Key Regions and Countries:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Several workforce management companies are concentrating on expanding their existing operations and R&D facilities.

Key Players Covered in Workforce Management Software Market :

Listed below are some of the most prominent workforce management company players.

• Kronos, Inc.
• Oracle Corporation
• SAP SE
• Automatic Data Processing, Inc.
• WorkForce Software, LLC.
• Ultimate Software
• Cornerstone OnDemand, Inc.
• IBM Corporation
• Verint
• Infor
• NetSuite, Inc.
• Other Key Players

Recent Developments:

• In April 2020, Ultimate Software merged with Kronos. Merging aims to form a leading provider of cloud workforce management to fulfill the need of organizations worldwide.
• In December 2022, QGenda, had launched QGenda Nurse and Staff Workforce Management solution, which helps to simplify the deployment and management of the healthcare workforce.

Report Scope: