The global workforce management market size is projected to reach USD 5.25 billion by 2026, exhibiting a CAGR of 10.1% during the forecast period. Growing need to enhance productivity and efficiency of employees among organizations will be the central growth driver for this market, as per the new Fortune Business Insights report, titled "Workforce Management Market Size, Share & Industry Analysis, By Component (Software, and Services), By Deployment (On-Premise, and Cloud), By Enterprise Size (SMEs and Large Enterprises), By Application (Workforce Analytics, Workforce Scheduling, Time and Attendance Management, and Others), By End-Use Industry (IT and Telecommunication, BFSI, Government, Retail, Healthcare, Education, Manufacturing, and Others) and Regional Forecast, 2019-2026".
The majority of office tasks today are performed in a clockwork manner, requiring executives and other employees to use their decision-making faculties even for routine administrative work. This has resulted in declining productivity of the workforce, necessitating solutions to optimize management of the workforce in companies. For example, Apollo Hospitals, a leading healthcare provider in Asia, deployed the Kronos Workforce Central in early 2019 in a bid to increase the efficiency and productivity of its employees. The product allows staff members to program their schedules and make user engagement easier and more convenient. Incorporation of such innovations by end-users in various sectors is expected to lead the workforce management market trends in the foreseeable future.
According to the WFM market report, the value of this market stood at USD 2.44 billion in 2018. The report also contains the following insights:
- In-depth analysis of the key market drivers
- Detailed evaluation of the challenges facing the market
- Comprehensive research of the regional dynamics of the market
- Exhaustive study of all the market segments
- Microscopic assessment of the competitive landscape of the market
Managing and maintaining the productivity levels of human resources is an expensive undertaking for companies of all sizes. The Human Capital Management Institute estimates that 70% of an organization's operating costs are eaten up by employee management tasks. In such a dire scenario, where reducing operational costs is the prime focus in the private sector, the demand for effective workforce management systems is rising as they offer numerous advantages for organizations. For instance, WFM software can empower managers to make more informed decisions due to better access to data. It would also enable managers to select the right person for the right job, ensuring efficiency in task performance.
Government-led digitization initiatives to drive market growth in Asia-Pacific
The market size in Asia-Pacific is anticipated to showcase the most impressive growth trajectory in the forthcoming years. The prime factor propelling the market in this region include digitization of services and processes, backed by strong government support. An excellent example of this is Singapore's 'Go Digital' initiates that encourages SMEs to integrate digital solutions in their existing setups.
North America, with a revenue generation of USD 0.92 billion in 2018, is poised to dominate the workforce management market share as companies in the region are aggressively implementing cloud-based solutions. Additionally, the region is also home to some of the largest technology giants such as IBM and oracle, which augurs well for this market. In Europe, on the other hand, rising demand for automation is expected to fuel the market.