Workforce Management Market Trends

Growth Drivers  

• Intensifying Trend of Digitalization- For instance, in 2022, 64% of the world's GDP was expected to be digitized, according to a recent report. The number of digital transformation strategies has increased to 72% as of 2019. The digital business strategy has already been adopted by 55% of startups in 2019. The increasing digitalization of businesses and organizations is leading to an increased demand for software platforms that can help manage employee data, attendance, payroll, and other HR activities. This is driving the growth of the workforce management market.
• Adoption of Advanced Technologies Such as Artificial Intelligence - Currently, 37% of companies have implemented AI in their business, and another 40% report that they are exploring AI as a possibility for the future. The number of people employed in the AI sector is expected to increase to 98 million by 2025. AI technology helps to automate labor-intensive processes, such as payroll, recruiting, and scheduling, and can be used to optimize the use of resources and improve employee engagement, which in turn boosts productivity and drives market growth.
• Government Initiatives to Encourage Digital Transformation - For instance, a new Digital Transformation with Africa (DTA) initiative was announced by US President Biden at the Africa Business Forum on December 14 in Washington, DC. The initiative will provide access to training and resources to enable the use of digital tools and technologies, expand access to digital infrastructure, and support the development of a digital-ready workforce.
•  Increased Deployment Of Workforce Management Software In The Healthcare Workforce - By implementing workforce management software, healthcare organizations can streamline workforce processes and reduce administrative costs. This software can also improve communication between staff, provide real-time visibility into staffing needs and facilitate accurate scheduling. For instance, the QGenda Nurse and Staff Workforce Management Solution has been launched in December 2022 to simplify the deployment and management of today's enterprise healthcare workforce.
• Rising Demand for Cloud-Based Enterprise Resource Planning (ERP) Systems- It was observed that 50% of companies worldwide are acquiring, upgrading or planning to update their ERP systems in the near future. 95% of businesses improved their business processes after implementing ERP. Also, cloud-based ERP solutions are used by more than half (53%) of organizations

Challenges

• Cost of implementing and maintaining a workforce management system - The cost of implementing and maintaining these systems can be quite high for companies, as they require significant capital investments. Additionally, the costs of training and updating the software on a regular basis can add up, making it difficult for companies to justify the costs.
• Difficulty of managing a distributed workforce
• Lack of reliable communication tools