Workforce Management Software Market Size, Share & Trends Analysis Report By Deployment Mode (On-premise, Cloud), By Functionality (Workforce Scheduling & Workforce Analytics, Time & Attendance Management, Performance & Goal Management, Absence & Leave Management, Others), By End-User (BFSI, Consumer Goods & Retail, Automotive, Energy & Utilities, Healthcare, Manufacturing, Others), By enterprise size (SMEs, Large enterprise) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global workforce management software market size was valued at USD 8.61 billion in 2023. It is expected to reach USD 19.48 billion in 2032, growing at a CAGR of 9.5% over the forecast period (2024-2032). Workforce management software helps in enhancing employee engagement by providing self-service tools, transparent communication channels, and scheduling flexibility. Engaged employees are more productive and less likely to turnover, which contributes to overall organizational success.

The rising use of cutting-edge technology like artificial intelligence drives the workforce management market. The demand for workforce management will be further exacerbated by small and medium-sized businesses' increasing desire for the Internet of Things and the growing popularity of remote workforce solutions. Smartphone adoption is rising, and companies are putting more emphasis on human resource analytics, which will lead to more profitable growth opportunities for the workforce management market.

The idea of "workforce management" focuses on raising an organization's competency and performance, monitoring staff productivity, and ensuring that all resources are used effectively and efficiently at the appropriate time. Locations fall within the purview of workforce management. Workforce management makes forecasting, scheduling, intraday management, timekeeping, and attendance easier.

Market Dynamics

Global Workforce Management Software Market Drivers

Artificial Intelligence and Machine Learning-Integrated New Product Offerings

Technological advancements have influenced the leading players to incorporate AI and Machine Learning (ML) into WFM software. For instance, Kronos has created AIMEE, an AI engine for the workforce and human capital management. The customized timetables provided by AIMEE ensure that the employee’s skills align with the seasonal demand and consumer volume. Additionally, it offers sophisticated labor volume forecasting. Such advancements encourage end users to implement cutting-edge solutions to benefit from its features.

Increased Adoption of Analytical Solutions by SMEs

As online usage increases, businesses are pressured to keep up with demand, necessitating adding capacity for ongoing cloud-based services. Over 59% of companies worldwide anticipate that their cloud consumption may be substantially higher than expected, and over 50% of small and medium-sized enterprises (SMEs) anticipate the same. Applying cutting-edge technologies to improve mobile workforce management often entails a financial barrier, particularly for small and medium-sized enterprises. Different organizations can use the cloud-based solution flexibly and "as a service," which enables smaller businesses to adopt cutting-edge technologies for minimal variable costs and increase their competitiveness.

With the advent of economic and widely available mobile technology and the increased demand for affordable technology solutions for small and mid-sized businesses, cloud-based adoption has been rising. These cloud-based solutions appeal to companies wishing to update their current processes just as much as they do to SMEs shopping for their first system. SMEs are aided by real-time data access, adaptations, the long-term total cost of ownership, and the growing requirement for software integration. Such elements fuel market expansion.

Global Workforce Management Software Market Restraint

Concerns Related to Implementation and Integration

Most software-as-a-service evaluations center on selecting a vendor that works well with and comparing feature sets to existing trouble areas. To get the benefits that any firm seeks, new workforce management software implementation can be a costly and time-consuming process that must be done correctly.

Mercer's 'Journey to Digital HR' found that up to 30% of HR tech implementation projects fail due to poor workforce change management. There are two areas where most businesses don't always invest enough time and energy to guarantee a workforce management software implementation's success. The first is testing, which, if done correctly, may reveal unforeseen problems that may be fixed before going live. The second area is training to ensure that it is possible to reap the benefits of effective adoption and use by the current workforce. Such factors hinder market growth.

Global Workforce Management Software Market Opportunities

Demand for Improved Human Resource Management (HRM)

It is projected that the global workforce management software market will grow at a healthy rate, primarily due to the growing adoption of human resource management techniques that take advantage of modern technologies. Enterprise workforce management software offers a consolidated solution for many HRM processes, including hiring, record keeping, performance management, and others. These advantages are laying the foundation for market growth.

Regional Analysis

By region, the global workforce management software market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North American Dominion in the Global Market 

North America holds the largest market share and is expected to grow fastest over the forecast period. The market for workforce management in North America has been booming recently. The main issues in this area are improving labor productivity and efficiency. The region established itself as the top trader in the retail venture market by occupying a sizable portion of the market and doubling trade volumes to surpass other regions. Countries like the United States and Canada are to blame for this situation. Canada has been witnessing notable growth in the e-commerce industry. 

Europe holds the second-largest market share. The widespread adoption of best workforce management practices among businesses results from the increasing need for compliance with GDPR enforced by European legislative bodies. 99% of European companies are small and medium-sized enterprises (SMEs), and most of the manufacturing sector is still underrepresented in international commerce. These players are anticipated to be significant users of the different workforce management software modules to preserve their competitive advantage and grow their operations. Germany is one of the most mature e-commerce markets in Europe. The widespread demand for e-commerce platforms has enabled companies to adopt workforce management solutions. 

Asia-Pacific is the fastest-growing region. Asia-Pacific is one of the biggest exporters and producers of goods. China, India, Indonesia, South Korea, Japan, and Australia are huge manufacturers of different goods. Many goods are produced in this region, from automobiles to software, from UAVs to food items. The workforce is essential for making this wide range of goods. This will further help the workforce management software market to increase in the region. The region's high concentration of SMEs, which are heavily involved in creating and using workforce software and their management solutions, is credited with its quick growth rate. The region is also anticipated to increase due to investments made by small and medium-sized businesses. SMEs are investing to increase the utilization of cloud-based and cutting-edge technology personnel management solutions.

Segmental Analysis

The global workforce management software market is segmented by deployment mode, type, end-user, and region. 

On the Basis of Deployment Mode

On-premise: on-premises also have growth due to the different user base, for instance, Mayo Clinic uses on-premises workforce management software to handle employee scheduling, time and attendance, and compliance with healthcare regulations. On-premises systems ensure that sensitive employee data is secure and controlled internally.

Cloud: Companies across the globe have been embracing the advantages of Software-as-a-Service (SaaS), or cloud-based software, for mission-critical applications. In recent years, cloud-based solutions have grown significantly due to technology allowing users to access data even from far-off areas. Businesses increasingly realize the benefits of moving their data to the cloud rather than building and maintaining on-premise infrastructure, according to Cloud Zero Globally, the cloud computing market will surpass $1 trillion by 2028.

On the Basis of Functionality

Workforce Scheduling & Workforce Analytics: The Workforce Scheduling & Workforce Analytics segment is the fastest growing segment. As multiple industries have relied on workers, workforce scheduling forms the foundation of a smooth business operation. The workforce scheduling needs to be efficient to take care of changes such as delays in job reporting, and sudden leave of absence, among others. With scheduling automation on the rise coupled with the growth in the number of tools available to manage larger workforces, the market is growing significantly.

Time & Attendance Management: The workforce time and attendance management software solutions help managers maintain employees' attendance history and automatically and proactively notify the workforce supervisors whenever the attendance violates a configured policy. This solution also helps create a seamless data exchange among all the workforce management processes that can coordinate with the payroll and human resources processes due to this the segment has a significant role in the market.

Performance & Goal Management: The Performance & Goal Management segment has become increasingly important in the Workforce Management Software Market, playing a crucial role in aligning employee performance with organizational goals. This segment's dominance is driven by the need for organizations to enhance productivity, improve employee engagement, and achieve strategic objectives. For instance, Microsoft tracks staff goals and performance using performance management technologies. The "Connects" initiative of the organization centers on ongoing staff development and feedback.

Absence & Leave Management: The Absence & Leave Management segment is indeed a crucial part of the Workforce Management Software Market, playing a significant role in managing employee absences, and leaves, and ensuring compliance with labor laws and company policies. Various big firms such as Walmart, and JP Morgan chase to handle leave requests and ensure compliance with labor laws and company policies. 

On the Basis of End-User Industry

BFSI: The BFSI (Banking, Financial Services, and Insurance) segment holds significant dominance in the Workforce Management Software Market due to stringent regulatory requirements, complex operational needs, and the critical importance of managing human resources efficiently. HSBC utilizes workforce management software to streamline HR processes, including payroll management, leave tracking, and performance monitoring. To perform various tasks at the same time in financial institutions the HR needs better workforce management software.

Consumer Goods & Retail: The Consumer Goods & Retail segment is significant in the workforce management software market. The demand for workforce management software is growing in the retail sector, as the solutions are witnessing increased adoption. The rise in the interest in fast-moving consumer goods, aggressive business sector development by market incumbents, and an increase in the number of new players are a few factors that have brought about robust growth in this locale.

Automotive: Rather than using generic workforce management software, automakers like Toyota, Ford, or Volkswagen use specialized manufacturing execution systems (MES) that interface with ERP systems. Workforce management software is used by the HR department and for certain operational purposes in automotive industries. 

Energy & Utilities: The Energy & Utilities segment is indeed significant in the Workforce Management Software Market, driven by its unique operational challenges, regulatory requirements, and the need for efficient workforce management across diverse roles and environments. Energy & Utilities companies manage a diverse workforce that includes field technicians, engineers, customer service representatives, and regulatory compliance officers. For instance, EDF Energy, a prominent energy supplier in the UK, uses workforce management systems to optimize workforce scheduling, manage employee productivity, and ensure compliance with health and safety regulations.

Healthcare: The Healthcare segment is one of the significant segment in the market. Future norms are predicted to include workforce management solutions in a big way. With functionalities such as workforce scheduling, effective schedules of employees can be generated considering the mix of employee skills and experience to deliver quality care. These solutions can also provide the nurses and other caregivers with self-scheduling capabilities that enable them to set schedule preferences and swap and choose open shifts, which can help them improve their work/life balance and decrease absenteeism.

Manufacturing: The Manufacturing sector is indeed a significant segment in the Workforce Management Software Market, driven by its unique operational needs, workforce dynamics, and the imperative for efficiency in production processes. For instance, Toyota uses advanced workforce management software to optimize production scheduling, manage shift rotations, and ensure efficient utilization of manufacturing resources with the integration of automation software.

On the Basis of enterprise size 

SMEs: SMEs play a crucial role in adopting workforce management solutions to enhance operational efficiency and employee productivity. Due to the size and funds of SMEs, they can face the challenge of budget constraints, and scalability concerns.

Large enterprise: As compared to the SMEs large enterprises have a high workforce to manage due to this they prefer to use the software. For instance, a company such as Amazon utilizes sophisticated workforce management software to manage its vast workforce across warehouses, fulfillment centers, and corporate offices globally.

Impact of covid-19

The ongoing pandemic raised the demand for sanitization requirements that soon became the new normal. Sanitization and hygiene maintenance with utmost care rose to a new high as the demand-wise category for cleaning agents, sanitizers, disposable gloves, and masks came to an all-time high. Pre-pandemic, the home sanitization category witnessed a downward growing trend. However, the post-pandemic period saw a surge in this category due to rising demand for home care products and cleaners. Consumers demanding a continuous link with home care brands and products amid COVID-19 will further contribute to the home care packaging market during the forecast period. 

Consumers pertaining to age groups adopted ordering products online due to the ongoing shutdowns and lockdowns, thereby witnessing a surge in sales. In China, the e-commerce channel grew 1.5 times to account for about 70% of sales. This was a combinative effort from online-only brands such as Free plus and Curél. Changing consumer buying habits affected packaging as traditional formats faced the issues of closures, openings, dispense systems breaking, and leakages. In 2020, consumers had to face extended periods of cleaning, which increased the intake of products for the home care packaging market. In essence, the market is expected to register a higher growth rate during the pandemic stage. 

Recent Developments

• April 2024 - Through an app on the Freshworks Marketplace, Playvox, the industry leader in Workforce Engagement Management (WEM) solutions for contact and support centers that prioritize digital interactions, announced the launch of their new WFM connection with Freshworks Customer Service Applications. The AI-powered tool will assist companies in forecasting support workloads across channels, managing agent schedules in an omnichannel configuration, and planning short- and long-term resource requirements.
• June 2024 - Citation, a Wilmslow-based compliance software expert, purchased Agendrix, an online worker scheduling and rota supplier. With this calculated action, The Citation Group has acquired three companies this year, greatly bolstering its global reach.