Workforce Management Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Organization Size, Deployment Mode, End-use Industry (BFSI, IT & Telecom, Government, Retail), and Geography - Global Forecast to 2031

Workforce Management Market Size & Forecast

The Workforce Management Market is expected to reach $9.8 billion by 2031, at a CAGR of 11.3% from 2024 to 2031. The growth of this market can be attributed to several factors, including the increasing adoption of cloud-based workforce management solutions, growing inclination towards workforce scheduling and optimization, and increasing adoption of workforce management solutions in various sectors. Moreover, the rising adoption of workforce management solutions in SMEs is expected to offer growth opportunities for the players operating in this market.

Workforce Management Market Growth Drivers

Increasing adoption of cloud-based workforce management solutions to fuel the market growth

Cloud-based workforce management solutions are becoming increasingly popular among organizations. Cloud solutions minimize the need for physical hardware, reduce operational costs, and enhance infrastructure scalability. They also provide secure access to official files and support the growing trend of Bring-Your-Own-Devices (BYOD) and remote work. Overall, accessibility, scalability, cost-effectiveness, automation, integration capabilities, real-time insights, and security offered by cloud-based workforce management solutions make them a compelling choice for businesses looking to streamline their workforce management processes and drive business growth.

Furthermore, several leading key players are taking initiatives to redefine their business strategies. For instance, in June 2021, Accu-Time Systems, Inc. (U.S.) launched its AccuCloud Time Collection Solution. This new solution delivers added value to workforce management software vendors and their customers. Such developments drive the growth of this segment.

Growing inclination towards workforce scheduling and optimization is driving the growth of this market

The growing inclination towards workforce scheduling and optimization reflects businesses' recognition of the critical role that effective workforce management plays in achieving operational excellence, driving business performance, and staying competitive in today's dynamic marketplace.

Workforce scheduling and optimization often involve the use of data analytics and forecasting techniques. By analyzing historical data and trends, businesses can make informed decisions about staffing levels, shift patterns, and resource allocation, leading to more efficient operations and better outcomes. Thus, effective workforce scheduling and optimization are essential for businesses to operate smoothly, minimize costs, maximize productivity, and maintain high levels of customer satisfaction.

Some of the recent developments in this space are as follows:

• In September 2023, Oracle Corporation (U.S.) introduced new workforce management capabilities within Oracle Fusion Cloud Human Capital Management (HCM) to help healthcare organizations adapt to changing labor markets. This new capability connects business and electronic health record (EHR) data on a single cloud platform to help healthcare organizations navigate advanced scheduling and labor needs.

• In November 2021, Workday, Inc. (U.S.) announced its latest workforce management innovations to support frontline workers and managers, including Workday Scheduling and Labor Optimization.

Workforce Management Market Trends

Growing Trend of Remote and Distributed Workforce

Since the COVID-19 pandemic, about 90% of organizations have embraced hybrid work models, integrating on-site and remote work. This balance offers employees control over their environment, reduces commute stress, and fosters work-life balance. Workforce management plays a critical role in supporting a remote workforce by providing the necessary tools, processes, and strategies to effectively manage and optimize remote employees.

Furthermore, workforce management software enables managers to create and adjust schedules for remote employees based on business needs, employee preferences, and availability. By accurately forecasting workload and scheduling the right resources, managers ensure optimal coverage and productivity, even in a remote setting. Also, workforce management software enables managers to create and adjust schedules for remote employees based on business needs, employee preferences, and availability. By accurately forecasting workload and scheduling the right resources, managers ensure optimal coverage and productivity, even in a remote setting. Thus, the benefits of workforce management solutions have encouraged their wide-scale adoption, which has become a notable trend in the workforce management market.

Rising Adoption of Mobile Accessibility and Communication Tools

The demand for mobile-friendly workforce management systems is increasing. Many employees use their smartphones to access work documents, communicate with coworkers, and perform other work tasks while away from their desks. Mobile accessibility allows employees and managers to access workforce management systems and tools from their smartphones or tablets, regardless of their location. This enables remote workers to clock in and out, view schedules, submit time-off requests, and access important information while on the go, enhancing flexibility and productivity. Also, mobile communication tools, such as messaging apps, video conferencing platforms, and collaboration software, enable real-time communication and collaboration among remote and distributed teams.

These tools facilitate quick decision-making, seamless information exchange, and efficient problem-solving, improving teamwork and productivity. Furthermore, several leading key players are taking initiatives to support mobile workforce management. For instance, in December 2022, QGenda, LLC. (U.S.) launched its QGenda Nurse and Staff Workforce Management, a mobile-first solution that makes it easier to deploy and manage today’s enterprise healthcare workforce. Thus, the rising adoption of mobile accessibility and communication tools is driving the growth of the workforce management market.

Workforce Management Market Opportunity

Rising Adoption of Workforce Management Solutions in SMEs Creating Strong Growth Opportunities in the Market

The rising adoption of workforce management solutions in SMEs reflects the growing recognition of the importance of efficient workforce management. By embracing these solutions, SMEs can improve operational efficiency, compliance, employee engagement, and competitiveness in their respective markets. Also, workforce management solutions automate manual and time-consuming tasks such as scheduling, time tracking, and payroll processing. By streamlining these processes, SMEs can improve overall operational efficiency and productivity, allowing them to focus on core business activities.

Furthermore, workforce management solutions offer advanced analytics and reporting features that provide SMEs with valuable insights into their workforce performance, trends, and patterns. By analyzing this data, businesses can make informed decisions about resource allocation, staffing levels, and operational efficiency, leading to better business outcomes. Thus, SMEs are adopting advanced workforce management solutions to improve operational efficiency, compliance, and employee engagement. These factors are expected to create growth opportunities for the players operating in the workforce management market.

Workforce Management Market Analysis: Key Findings

By Offering: In 2024, the Solutions Segment to Dominate the Workforce Management Market

In 2024, the solutions segment is expected to account for the larger share of ~76.0% of the global workforce management market. The segment’s large share is attributed to the increasing adoption of cloud-based workforce management solutions, increasing focus on solution-centric capabilities, rising R&D investments, and rising demand to simplify the work of employees in the organization. In addition, the benefits offered by workforce management solutions, such as employee efficiency and productivity, labor scheduling, data-driven decisions, operational agility, flexible work, and regulatory compliance, contribute to this segment's growth. Also, several global key players are redefining their business strategies to improve productivity. For instance, in March 2023, UJET, Inc. (U.S.) partnered with Google Cloud (U.S.) to launch its workforce management suite to power the future of employee and customer experience. This solution offers highly accurate forecasting, scheduling, and real-time adherence monitoring to improve remote contact center agent performance, satisfaction, and the overall customer experience. Also, this segment is projected to grow at the higher CAGR during the forecast period of 2024–2031.

By Deployment Mode: In 2024, the Cloud-based Deployment Segment to Dominate the Workforce Management Market

In 2024, the cloud-based deployment segment is expected to account for the larger share of ~64.0% of the global workforce management market. The segment’s large market share is attributed to the rapid evolution of new avenues for cloud-based deployments, the superior flexibility offered by cloud-based deployments, and the increasing incorporation of cloud-based workforce management solutions. In addition, several leading key players are taking initiatives to support the growth of this segment. For instance, in May 2023, Genesys Cloud Services, Inc. (U.S.) launched its new Genesys Cloud EX solution to engage, motivate, and empower employees within the contact center and beyond. This new standalone employee experience solution helps any business increase engagement, performance, and trust with today’s digital workforce through capabilities including artificial intelligence (AI)-powered workforce forecasting and scheduling, gamification and performance management, coaching, and employee development. Also, this segment is projected to grow at a higher CAGR during the forecast period of 2024–2031.

By End-use Industry: In 2024, the IT & Telecom Segment to Dominate the Workforce Management Market

In 2024, the IT & telecom segment is expected to account for the largest share of the global workforce management market. The segment’s large market share is attributed to the rising need to manage the workforce effectively, the growing trend of remote and distributed workforce, the increasing implementation of mobile workforce management solutions, and the growing inclination towards workforce scheduling and optimization. Moreover, this segment is expected to grow at the highest CAGR during the forecast period of 2024–2031.

Geographical Analysis

In 2024, North America is expected to account for the largest share of ~33.0% of the global workforce management market. North America’s large market share is attributed to the presence of prominent players offering advanced workforce management solutions. For instance, in August 2021, SAP SE (Germany) and Red Hat, Inc. (U.S.) consolidated their external workforce program in North America through a partnership with Monument Consulting (U.S.), with the SAP Fieldglass Contingent Workforce Management application at its core. Furthermore, the growing adoption of cloud-based workforce management solutions, rising adoption of workforce scheduling and mobile workforce management solutions, and growing adoption of workforce analytics solutions in the IT and telecom sectors are also contributing to the growth of the workforce management market in North America.

However, the Asia-Pacific region is projected to register the highest CAGR of ~13% % during the forecast period of 2024–2031. The rapid growth of this region is mainly driven by factors such as the rising adoption of advanced technologies, the rising adoption of workforce scheduling solutions in SMEs, the growing trend of remote and distributed workforce, and market players’ efforts to launch advanced workforce management solutions. For instance, in February 2024, Rippling People Center Inc. (U.S.) opened its new office in Australia. Rippling offers a workforce management platform to Australian organizations.

Workforce Management Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the workforce management market are UKG Inc. (U.S.), Oracle Corporation (U.S.), ADP, Inc. (U.S.), SAP SE (Germany), Workforce Software, LLC. (U.S.) (A Part of Workforce Holdings), NICE Ltd. (Israel), Verint Systems Inc. (U.S.), Workday, Inc. (U.S.), Infor (U.S.), Replicon Inc. (Canada), IBM Corporation (U.S.), SISQUAL Workforce Management, Lda. (Portugal), SumTotal Systems, LLC. (U.S.), TimeClock Plus, LLC. (U.S.), and Dayforce, Inc. (U.S.).

Workforce Management Industry Overview: Latest Developments from Key Industry Players

• In April 2023, Workday, Inc. (U.S.) expanded its partnership with Alight, Inc. (U.S.) to bring a simplified and unified payroll experience to HR and payroll professionals. Initially launching in six European regions, including Benelux, Germany, Italy, the Nordics, Spain, and Switzerland, this collaboration integrates Alight's workforce technology platform, Alight Worklife, with Workday Human Capital Management on a unified digital platform. The unified platform aims to provide organizations with an efficient and consistent experience for handling the challenges of managing a multinational workforce.

• In March 2023, UJET, Inc. (U.S.) launched Intelligent Workforce Management in partnership with Google Cloud (U.S.). This new solution offers highly accurate forecasting, scheduling, and real-time adherence monitoring to improve remote contact center agent performance, satisfaction, and the overall customer experience.

• In September 2022, Replicon Inc. (Canada) launched its Knowledge Workforce Management Solution, which is built using AI-powered ZeroTime. This new solution provides the highest level of data accuracy and data quality in real-time using AI & ML technologies.
• In July 2022, Procore Technologies, Inc. (U.S.) launched its new solution, Procore Workforce Management, which features two key products: Field Productivity and Workforce Planning. Field Productivity and Workforce Planning offer the industry’s most comprehensive construction workforce management solution, allowing contractors visibility into their workforce to accurately forecast and manage human resources to help meet or beat estimated schedules and budgets.

Workforce Management Market Research Summary:

Key questions answered in the workforce management market report: