Workforce Management Market Overview
Workforce Management market (WFM) is anticipated to reach $ 10,118 million by 2027 at a CAGR of 9.1% during the forecast period 2022-2027. Workforce management (WFM) is a collection of processes that a firm uses to maximize its employees' productivity. On a day-to-day and hour-to-hour level, WFM entails successfully estimating labor requirements and designing and managing staff schedules to complete a specific activity. Organizations can use Workforce management (WFM) systems to obtain insight into business KPIs like the exact number of people required to execute a specific job at a specific time of day, week, or month. It also aids in the monitoring of employees' daily performance. In order to gain insights related to operational, commercial, and financial aspects, a large number of leading organizations are leaning toward an integrated all-in-one workforce management suite that may include capabilities such as marketing automation, inbound marketing, workforce optimization, and business analytical tools which would influence the growth of the market. Further, continuous upgradation of existing offerings to drive the workforce management and integration of sophisticated technologies such as IOT and ai to enhance workforce management standards favorably boosting the market growth.
Workforce Management Market Report Coverage
The report: “Workforce Management Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Workforce Management market.
- North America dominated held the major market share in 2021. This is mainly attributed to early adoption of new technologies, presence of key market players and region's businesses are the most forward-thinking in terms of AI, machine learning, and cloud adoption, propelling the market's growth.
- Factors such as growing adoption of digitalization among governments, growing demand for improved human resource management practices and integration of sophisticated technologies such as IoT and AI to enhance workforce management standards are driving the demand of workforce management during the forecast period
- Among the deployment model segment, Cloud is set to be the fastest growing as many business leaders are turning to cloud-based workforce management because they want an all-in-one solution that includes marketing automation software, workforce management software, and business analytical tools for commercial, operational, and financial insights.
Workforce Management Market share in %, by Geography, 2021
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Workforce Analytics & Reporting Segment Analysis- By Application
Workforce Analytics & Reporting segment is set to be the fastest growing over the forecast period 2022-2027 with growth rate of 11.2%. The workforce analytics approach is used to improve HR efficiency and decision-making linked to employees. This aids in raising the productivity of current employees rather than hiring new ones, as well as refining the selection criteria. The worldwide workforce analytics segment is being boosted by the increasing need for workforce analytics for analyzing manpower and achieving improved business results as a result of expanding corporate competitiveness. Further, the global workforce analytics market is expected to benefit from the usage of advanced workforce analytics for tackling HR concerns, technological training programmes for employees, and advanced data protection and compliance measures in place. Additionally, growing organisational concerns about large amounts of data regarding human capital is a major driver of global workforce analytics. Such factors would boost the growth of the segment during the forecast period.
Workforce Management Market Segment Analysis- By End User Industry
This market is segmented into BFSI, IT & Telecom, Healthcare, Retail, Transport & Logistics, Government & Defense, Manufacturing, Energy & Utilities and Others. Among all, Retail sector is making it fastest growing during the forecast period 2022-2027. As it helps businesses save time and money with powerful, easy-to-use automated tools for scheduling, time & attendance, compliance, payroll and more. It also helps to eliminate paper processes, gain real-time visibility into workforce and provide better, more predictable schedules. Owing to the advancement in technology, attaining skill and knowledge has become easier. A skilled workforce promotes profitability, productivity, and consistent growth in any retail organization which would positively influence the growth of the segment. For instance, in 2021, Oracle Corporation partnered with Sport retailer. With this collaboration, Wiggle migrated its on-premises retail solutions to oracle merchandising cloud services on oracle cloud infrastructure. As they migrated to cloud, it saves time, cost and stay focused on business.
Workforce Management Market Segment Analysis- By Geography
Among all regions, North America Management dominated the Workforce Management Market with revenue of $2,399m by 2021 and is estimated to reach $3,715m by 2027 growing at a CAGR of 8.0% over the period 2022-2027. This is due to the fact that the United States has the largest number of players. The United States and Canada are likely to dominate the North American market. Also, the key drivers in this region are increasing labor efficiency and productivity. As a result, the region gained a considerable market share and increased trade volumes to become the leading trader in the retail venture industry. For example, the yearly sales of retail food and beverage stores in the United States in 2020 were USD 853.13 billion, according to the US Census Bureau, while overall US retail sales in fiscal 2020 were USD 4.89 trillion, according to the US Department of Commerce. All such factors are likely to promote the growth of the region. Furthermore, South America is projected to have the fastest growth during 2022-2027 with CAGR 12%. This is owing to its rising development in IT sector, followed by increasing adoption of cloud services in South America.
Workforce Management Market Drivers
Growing Demand for Improved Human Resource Management Practices To Drive Market Growth:
The worldwide workforce management market is predicted to develop at a healthy rate, owing to an increase in the use of current approaches for human resource management that are connected with technology. The benefits of corporate workforce management software include acting as a single solution for various HRM operations such as recruiting, documentation, performance management, and others. These benefits are building the groundwork for market expansion. For Instance: Oracle, an American multinational computer technology firm headquartered in Austin, Texas, developed a Return-to-Workplace Package called "Oracle Fusion Cloud HCM's Employee Care Package" in February 2019, as businesses prepare to reopen once the Covid-19 epidemic has passed. This programme walks employees through a number of critical activities to increase workplace safety and make the transition back to regular work routines easier. Furthermore, organizations that provide labour management solutions are offering services in order to capture the largest possible part of the global workforce management market.
Integration Of Sophisticated Technologies such as IoT And AI To Enhance Workforce Management Standards Favorably Boosting The Market Growth:
One of the primary forces fuelling its market expansion is the integration of new technologies such as IoT and AI to improve workforce management standards. Enterprise adoption of sophisticated technologies such as artificial intelligence (AI) and the Internet of things (IoT) has expanded over time as a result of its ability to provide real-time data visibility and data analytics, which aid in improving industrial operational efficiency standards. Implementing such technologies aids in the optimization of workflows, including meeting auto-scheduling, setting up reminders for priority tasks, improved service delivery, faster decision-making, forecasting staffing needs, work scheduling, and other factors that contribute to the need for advanced workforce management tools. These developments in workforce management activities have aided the company's market expansion by assisting managers or workers in solving challenges with intelligence and precision. For Instance: Legion announced the addition of four modules to its AI-based Legion workflow management (WFH) platform in September 2021, namely Legion Labour Budgeting, Legion Frontline Communications, Legion Performance & Rewards, and Legion InstantPay. This was done to improve the platform's capabilities by giving companies greater planning and execution options while also providing an employee experience that empowers hourly workers. In the long run, such forces are likely to propel the market ahead.
Workforce Management Market Challenges
Lack Of Awareness About WFM Solutions & Services to Hamper Growth:
Managing and sustaining human resource productivity levels is an expensive effort for businesses of all sizes. Employee management responsibilities are estimated to consume 70% of an organization's operational expenditures, according to the Human Capital Management Institute. In such a grave situation, when lowering operating expenses is a top priority in the private sector, the need for effective personnel management systems is increasing, as they provide several benefits to businesses. WFM software, for example, can enable managers to make more informed decisions by providing improved data access. It would also allow managers to choose the best worker for the position, resulting in increased task efficiency. Unfortunately, based on the available uptake of these technologies, particularly among small and medium businesses, understanding of these benefits is abysmally low (SMEs). During the forecast period of 2022-2027, this might severely hinder the expansion of the workforce management market.
Workforce Management Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Workforce Management market. In 2020, the market of Workforce Management industry outlook has been fragmented by several companies. Workforce Management top 10 companies include
- Workforce Software LLC
- Authority Software
- SAP SE
- Infor Inc.
- KRONOS Incorporated
- Nice Systems Ltd
- Kirona Solutions
- ADP LLC
Product Launch/Acquisitions/Technology Launches:
- Acquisition: Oracle Corporation and Cerner Corporation announced a joint agreement on December 20, 2021, for Oracle to purchase Cerner in an all-cash tender offer for $95.00 per share, or roughly $28.3 billion in equity value. Cerner is a prominent developer of digital information solutions that help medical professionals provide better care to inpidual patients and communities in hospitals and health systems.
- Product Launch: In June 2020 IBM has launched a new product. Watson Works is a curated collection of solutions that leverage Watson artificial intelligence (AI) models and apps to assist businesses in resuming operations following COVID-19 lockdowns. Watson Works is aiming to make it as easy as possible for companies to cope with the ongoing COVID-19 health crisis in the workplace.
- Product Launch: In April 2021, Authority Workforce Management is now available to the entire public, according to Authority Software. Authority's labour management solution complements a number of well-known industrial applications, like quality recording management, customer relationship management, and quick application development.
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