Workforce Management Software Market Size - By Software Type (Workforce Scheduling and Optimization, Time and Attendance Management, Employee Performance Management, Workforce Analytics), Deployment model (On-premises, Cloud), End-user & Forecast, 2024 - 2032

Workforce Management Software Market Size - By Software Type (Workforce Scheduling and Optimization, Time and Attendance Management, Employee Performance Management, Workforce Analytics), Deployment model (On-premises, Cloud), End-user & Forecast, 2024 - 2032

Workforce Management Software Market Size

Workforce Management Software Market size was valued at USD 8.8 billion in 2023 and expected to grow at over 8.5% CAGR from 2024 to 2032. The market growth is driven by the rising demand for remote work solutions. The COVID-19 pandemic accelerated the adoption of remote and flexible work arrangements. According to a 2023 survey conducted by Buffer, an overwhelming 98% of survey participants expressed a desire to continue working remotely, even if it's just part of their career journey. This figure shows a slight uptick from 97% in 2022.

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In addition, an equal 98% would now recommend remote work to others, marking a growth from the 97% recorded in 2022. In a broader sense, 91% of those surveyed report having had a positive and satisfactory experience with remote work. WFM software and tools became crucial for managing remote employees and ensuring that they remain productive. As remote work remains a significant part of the work landscape, even as the pandemic recedes, the demand for WFM solutions will continue to sustain in the forthcoming years, strengthening the workforce management market outlook.
 

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Increased emphasis on workforce optimization is expected to drive the WFM software market through 2032. Many organizations are focusing on optimizing their workforce to improve productivity, reduce labor costs, and enhance customer service. WFM solutions help businesses better allocate resources, schedule employees, and manage workloads efficiently, leading to increased demand for these tools.

For instance, in January 2023, Accenture and UKG, a prominent provider of HR, payroll, and workforce management solutions, joined forces to assist Ardent Health Services in enhancing workforce visibility and adaptability throughout its extensive network of 30 hospitals and 200 care facilities. Ardent is in the process of revamping its workforce operations, encompassing everything from timekeeping to scheduling, to empower frontline staff through more adaptable scheduling options that enhance work-life balance. All the while, their primary focus remains on delivering high-quality healthcare services.

However, implementing a WFM system can be a complex and time-consuming process. It often requires integration with existing HR and payroll systems, as well as training employees on how to use the new technology. The complexity of integrating these systems and ensuring they work seamlessly together can be a barrier for some organizations, especially smaller ones with limited IT resources. The fear of disruption during the implementation process can also restrain WFM adoption.

COVID-19 Impact

The COVID-19 pandemic had a profound impact on the workforce management (WFM) software market. It accelerated the adoption of remote work, leading to increased demand for WFM tools that could effectively manage distributed teams. WFM solutions became essential for ensuring employee productivity, safety, and compliance with evolving labor regulations. The pandemic highlighted the importance of agile scheduling and workforce optimization, making WFM technology a critical component for organizations adapting to the new work landscape.

Workforce Management Software Market Trends

The integration of artificial intelligence (AI) and predictive analytics in WFM systems is expected to become more prevalent and will facilitate industry expansion over 2023-2032. These technologies can help organizations forecast staffing needs with greater accuracy, optimize employee scheduling, and identify trends in employee performance. By leveraging AI and analytics, WFM tools can become more proactive and data-driven. Quoting an instance, in March 2023, UJET, Inc., a forward-thinking contact center platform, unveiled UJET WFM in collaboration with Google Cloud.

This workforce management suite, seamlessly integrated into the Google Cloud Contact Center AI Platform, introduces innovative business intelligence solutions for the contact center sector. UJET WFM delivers precise forecasting, scheduling, and real-time adherence monitoring to enhance the performance and satisfaction of remote contact center agents, ultimately elevating the overall customer experience. The improving technological landscape, in line with the increased acceptance of remote and hybrid work models, will drive the demand for WFM solutions to manage hybrid workforces effectively.

Workforce Management Software Market Analysis

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Based on software type, the time and attendance management segment accounted for 25% of the market share in 2023, led by the need for greater efficiency and productivity in today's workplaces. Businesses are increasingly recognizing the importance of accurate time tracking to control labor costs, ensure compliance with labor laws, and improve resource allocation.

Additionally, the rise of remote and flexible work arrangements necessitates robust time and attendance management tools to monitor and manage remote employees effectively. With a growing emphasis on workforce optimization, organizations seek these solutions to enhance operational effectiveness and streamline payroll processes, contributing to the overall demand.

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Based on deployment model, the cloud segment held around 35% of the workforce management software market share in 2023. The demand for cloud-based workforce management solutions is fueled by the scalability and accessibility of cloud technology, making them ideal for businesses of all sizes. It allows organizations to efficiently manage their workforce from anywhere, accommodating the growing trend of remote and distributed workforces. Cloud solutions also offer cost savings by reducing the need for on-premises infrastructure and maintenance. Moreover, the flexibility and real-time data access provided by cloud-based systems enable agile decision-making, enhancing operational efficiency and workforce productivity, further driving their adoption.

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North America workforce management software market recorded 30% of the revenue share in 2023, due to the region's advanced technological infrastructure and early adoption of digital solutions. With a robust economy, North American businesses are increasingly prioritizing workforce optimization to stay competitive. The COVID-19 pandemic accelerated the demand for remote work solutions, boosting WFM adoption. For instance, Salesforce implemented WFM tools to manage remote agents effectively during the pandemic. Moreover, stringent labor regulations in North America, such as overtime laws, make WFM systems essential for compliance, further fueling industry growth.

Workforce Management Software Market Share

Oracle Corporation and SAP SE dominate the workforce management (WFM) software industry. These companies are focusing on innovative developments in AI and cloud technologies, forging strategic partnerships, diversifying service portfolios, and strengthening data security measures. Such measures help address the ever-changing needs of their clientele while simultaneously ensuring compliance with evolving regulatory requirements.

Workforce Management Software Market Companies

Major companies operating in the workforce management (WFM) software industry are

• Oracle Corporation
• SAP SE
• ADP, Inc.
• Workday Inc.
• Microsoft Corporation
• IBM Corporation
• UKG Inc.

Workforce Management Software Industry News

• In September 2023, Oracle Corp., a prominent database software company, announced its expanded presence in the healthcare sector by integrating additional workforce management features into its Oracle Fusion Cloud Human Capital Management offering. These newly introduced tools empower healthcare providers to navigate the ever-evolving labor landscape within the industry. They facilitate more effective workforce organization to align with patient needs while also improving staff retention and recruitment efforts.

The workforce management (WFM) software market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Software Type

• Workforce Scheduling and Optimization
• Time and Attendance Management
• Employee Performance Management
• Workforce Analytics
• Others

Market, By Deployment Model

• On-premises
• Cloud

Market, By End-user

• Retail
• Healthcare
• Manufacturing
• BFSI
• IT and Telecom
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

How big is the workforce management software market?

The market size of workforce management software reached USD 8.8 billion in 2023 and is set to expand at 8.5% CAGR from 2024 to 2032, due to the rising demand for remote work solutions worldwide.

Why is the WFM software industry growing from time and attendance management software?

The time and attendance management software type segment held over 25% of the market share in 2023, owing to the dire need for greater efficiency and productivity in today's workplaces.

What factors are influencing workforce management software market growth in North America?

North America market held over 30% of the revenue share in 2023, attributed to the presence of an advanced technological infrastructure and early adoption of digital solutions in the region.

Who are the key WFM software industry players?

Oracle Corporation, SAP SE, ADP, Inc., Workday Inc., Microsoft Corporation, IBM Corporation, and UKG Inc., are some of the major workforce management software companies worldwide.