Workforce management refers to equipping employees with the required skill at the right time and place to achieve service levels at a reduced cost. Effective workforce management is essential in a workplace to achieve operational efficiency, manage labor costs, minimize administration, and manage effective staffing, forecasting and scheduling, and real-time adjustments to meet service levels consistency. Reduced expenses, increased operational agility and productivity, reduced financial and non-compliance risks, and improved customer satisfaction, are a few of the key benefits of workforce management driving organizations into a completely new model ensuring optimal performance. The below figure depicts the important aspects of a workforce management cycle.
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Workforce management systems offer remote access, low cost of deployment, and unlimited storage capacity, which drives their adoption. The increasing need to streamline HR operations, especially after the current pandemic, is anticipated to boost the market growth. Growing trends of workforce optimization, cloud deployment, and regulatory mandates formulate are expected to further fuel market growth during the forecast period.
Data hacks and privacy concerns are expected to restrict market growth in the years to come. However, as the need for connected and unified enterprise arises, many companies will shift to an integrated workforce management system spread across diverse locations in the upcoming years, which is substantially expected to support the market infrastructure. In addition to this, the adoption of digital technology to effectively manage employees will be one of the key growth opportunities for the market during the forecast period.
The presence of a large number of key companies and tech giants and their early adoption of technology propel the market growth in North America. In light of the current pandemic, organizations are forced to reshape their workforce management infrastructures. Emerging players of the U.S., Canada, and Mexico, such as Kronos Incorporated and Ultimate Software, are adopting cloud computing in workforce management software to offer benefits, such as mobility, flexibility, and security. Many are making necessary changes in employee schedules, promoting work from home to ensure employee safety. The new approach is also expected to save an enormous amount of money and increase productivity in the upcoming years.
Asia-Pacific is expected to be the fastest-growing region in the workforce management market during the forecast period. Companies offer workforce management solutions through the private cloud to offer multi-level physical and logical security features. Growing industrialization and urbanization have led to the expansion of the workforce in countries, such as India and China. Development projects, such as the APEC Digital Workforce Development Project, enable employees to leverage digital and distance-learning technologies through technical education. Asian businesses have observed the most immediate blow due to their close proximity to China, the pandemic’s epicenter. The new work-from-home culture in these turbulent times has seen Asian companies realizing the importance of social distancing and providing valuable insights to the newly affected regions.
The sudden upsurge in COVID-19 cases in the European continent has forced companies to shift to a remote working environment. Unpredicted changes have strained operations, posing the biggest challenge of choosing the best workforce management system to implement. Companies, such as ATOSS and SAP, have revised employee policies and remote working modules in accordance with their interests. Key vendors are focusing on optimizing technological solutions essential in orchestrating a successful remote working environment and achieving cost efficiency.
Companies have been putting hiring on pause at the moment, which has further augmented the need for the effective management of the remaining workforce. While organizations are contextualizing the pandemic for the business organization, employees need to understand how the company is being impacted and strive for business continuity. Empowering the workforce with the right information and statistics is anticipated to uplift the market during the forecast period by building a trusted consumer base.
Many South American giants believe leadership is key for effective business management when a crisis hits. Front-line managers are communicating with employees working from home. Staying connected with teams through teleconferencing wares is a major driving factor for the workforce management market. Companies, such as Technisys and ComparaOnline, among others, are formulating favorable operation policies and offering health coverages to employees. More than 40% of organizations in the region have communicated relevant action plans to employees at the time of crisis.
The Adcorp Group, a USD 1.5 billion global workforce management solutions company based in South Africa, is delivering superior experiences to its customers and potential employees for sustaining its leadership position in workforce management services. The company is adopting a lean digital approach and effective digital technology and analytics to create and deploy innovative solutions for greater market success and scale. Slow economic growth and weakening local currency are pushing regional companies to expand globally through partnerships and acquisitions. Globally operating companies are thus adapting to the integration of data systems and subsidiaries to get enterprise-wide views and analysis.
By type, the solutions segment is anticipated to dominate the market during the forecast period owing to the transformation of traditional management techniques into digital and other technological solutions. The simplification of schedules and redirection of employee work allocations to focus on more significant business aspects are expected to boost the segment’s growth. The efficient management of time and attendance, leave and absence, workforce analytics, and other tasks help the organization in maintaining human resources activities and analyzing data for the core business.
Large businesses, such as consumer goods and retail, are expected to register exponential market growth owing to the increased visibility and control over a diversified workforce of in-store employees, drivers, and field service providers. Evolving small-scale enterprises are also expected to grow rapidly in terms of technological changes, customer needs, and employment. Digitalization and analytics are expected to address complexities related to employee training, time and attendance, labor analytics, forecasting, and scheduling optimization in automation and manufacturing. The proper utilization of resources through big data and workforce management mobile solutions for budgeting, forecasting, and managing employee tasks is anticipated to aid adoption across organizations.
The novel coronavirus outbreak has caused disrupted global economies and their work culture. Organizations are struggling to maintain employee health and productivity. With a majority of workers working from home, companies are finding it difficult to sustain in the new environment, and many are forced to take tough decisions, such as cost-cutting, lay-offs, and salary cuts. The pandemic has presented new roadblocks for the global workforce, predominantly hitting the daily wages of contractual workers.