The penetration of workforce management solutions can be widely seen in sectors such as government, retail, healthcare, and the BFSI. Increasing cloud and mobile penetration has introduced new methods of working in various sectors.
The concept of real-time workforce management is gaining popularity due to the increasing complexity in business activities and rapid change in the conditions of people and their plans. Technological advancements have significantly supported the growth of the workforce management market.
Talent management and workforce analytics are the fastest-growing solutions in the market. However, the emerging economies in the APAC region are expected to have immense growth potential.
According to a new market research report “Workforce Management Market by Solution (Time and Attendance, Compensation Management, Learning Management, Talent Management, Workforce Analytics, Workforce Scheduling), by Service, by Deployment, by Org Size, by Vertical, by Region – Global Forecast to 2020“, published by MarketsandMarkets, the global workforce management market is expected to grow from USD 4,880.3 Million in 2015 to USD 7,725.8 Million by 2020, at a Compound Annual Growth Rate (CAGR) of 9.6%.
The changing concept of HR professionals becoming business partners has revolutionized the way HR used to function. The importance of understanding the concept “you cannot manage what you cannot measure” in HR has coined an important topic called measuring HR which helps organization to understand the importance of human capital, cost spent of various HR activities, and employee feedbacks for better employee satisfaction.
Therefore, companies can manage their workforce in a better way which is the vital part of HR functions. Technological advancements have enabled workforce management market to understand the emerging needs of the organizations and provide better solutions.
Workforce management solutions such as time and attendance, talent management, compensation management, performance management and analytics are helping HR managers to hire and retain their employees.
Solutions and systems are gaining very high traction across several markets due to decrease in HR operational costs, and increase in the profitability of the organization. The demand for this market is also driven by cloud ubiquity worldwide and the changing work dynamics.
See: Effects of Poor Workforce Planning on Business
Emerging factors such as increasing usage of Smartphone, internet, and increasing mobility is driving the Workforce Management Market. North America is the expected to be the top contributor in the workforce management in 2015, due to increasing technological acceptance and high awareness about emerging workforce management concerns in the organizations.
However, Asia-Pacific (APAC) and Middle East and Africa (MEA) are expected to show tremendous growth in this market in the coming years.
Increasing complexities at the workplace have necessitated the shift from traditional ways of workforce management to the computerized ways of handling workforce functions to attain higher efficiencies.
Workforce management solutions are being implemented at a faster pace as they provide unparalleled insight into the entire organization and are managing the most important resource of an organization, that is, human resource.
Workforce management software also keeps a track on all the legal compliances and frameworks related to workforce, such as local and state laws, age requirements, working hour laws, minimum leaves, and others.
The advantage offered by workforce management software has generated the interest of other small players to invest in it for organizational efficiency. Initially, budgets constraints made its adoption difficult for SMBs; however, the cost-effective features of the Software-as-a-Service (SaaS) platform have increased its popularity among smaller organizations as well.
Among various workforce management market solutions, the talent management solution is gaining high popularity as it helps in scouting, identifying, and acquiring newer talents from the talent pools as well as management, and retaining the existing talent quotient in the companies.
HR analytics is another solution that is rapidly gaining momentum owing to its capability to address big data, which is increasing at a rapid pace.
Increasing consumerization of workforce, usage of mobile applications, changing workforce dynamics, and availability of SaaS workforce management solutions are the major factors driving the growth of workforce management solutions in across organizations of all sizes.
Workforce management solutions, integrated with Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM), are helping organizations analyze employee data and take strategic decisions based on their performance, attendance, working hours, learning, and other employee attributes.
Moreover, the sudden growth in mobile devices and applications has also contributed to the growth of workforce management. Mobile workforce is leveraging the benefits of mobile apps, which are easily accessible anytime and anywhere; therefore, the demand for mobile workforce management is very high and is expected to surpass the demand for web-based workforce management in the years to come.
Also read: 5 Key Defining Talent Trends to Effectively Recruit the Mobile-Enabled, On-Demand Workforce
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