Workforce management is a software responsible for efficiently managing the working and productivity of employees in an efficient manner using several digital tools. Fortune Business Insights™ estimates that the global workforce management market will grow from USD 2.44 billion in 2018 to USD 5.25 billion by 2026, exhibiting a CAGR of 10.1% during the forecast period. The rising demand for efficiency and workforce productivity from organizations may drive consumers’ adoption of the management system. Furthermore, adopting a skilled workforce and rapid digitization may foster the industry’s growth in the coming years.
COVID-19 Impact: Rising Dependence Upon Digital Services Likely to Boost Software Adoption
The COVID-19 pandemic has transformed the workforce completely by relying on internet services. Organizations have shifted to the adoption of digital services to undertake their business. Further, there is rise in adoption of digitization enables organizations to reduce workforce and enhance their efficiency. Digital tools and automated production techniques boost the necessity of effective management solutions.
The rising dependence on internet services leads to efficient tracking software, thereby enhancing the product adoption.
Optimization of Operational Costs to Foster Workforce Management Tools’ Adoption
The product’s lower operational costis the biggest factor responsible for the workforce management industry growth. Companies aim at developing efficient and cost-saving tools to enhance efficiency and improve workflow efficiency. For example, according to a study conducted by the Cedar ROI study, the adoption of labormanagement enabled a small enterprise with a capacity of nearly 5,000 employees and nearly USD 300 million payrolls to save nearly USD 6.0 million every year. This development may attract businesses to adopt the software and enhance workflow efficiency.
Integration of Artificial Intelligence (AI) and Machine Learning (ML) to Surge Demand
Integrating artificial intelligence and machine learning may enable developers to enhance workforcemanagement software’s efficiency, accuracy, and responsiveness. For example, Kronos developed an artificial intelligence engine named AIMEE to enhance the integration of the software. The incorporation of advanced algorithms enables manufacturers to develop best-in-class products that enhance their sales and offer innovative solutions to clients. Simultaneously, significant investments in research & development are expected to improve the product’s efficiency.
Major Challenge: Lack of Awareness Regarding Software’s Benefits May Slump its Sales
Lack of knowledge regarding the digital software’s benefits is expected to enhance the product’s efficiency. Insufficient investments and lack of resources for the development of management software may hinder the market’s potential. Moreover, issues regarding the reliability of the software may hinder workforce management software adoption. Furthermore, lack of government initiatives to adopt the software across several sectors and organizations may hinder the market growth.
Key Players: Players Deploy Crucial Strategies to Fuel Competitive Environment
Manufacturers aim to adopt effective strategies to enhance the accuracy, efficiency, and reliability of the software. Incorporating advanced technologies, such as AI, ML, and cloud services, allows companies to boost the software’s accuracy and gain consumer trust. Rising investments in research & development improve the workforce management software’s quality and attract consumers.
Moreover, companies announce novel products and features with enhanced capabilities. For example, Kronos, Inc. launched its next-generation Workforce Dimension cloud site in January 2019. The features enable companies to develop effective solutions and enhance workflow.
Further, companies focus on developing new products to expand their existing product portfolio and attract a huge consumer base. For example, Automatic Data Processing announced its ADP compliance in October 2019 as an addition to its product offerings. This software may enable companies to remain updated and informed regarding workers’ wage compliance and hours covered. It also offers advanced features such as a compliance help desk, crowd-sourcing opinions, and other services and practices.
Major Companies Operating in the Market
- Kronos Inc.
- Oracle Corporation
- SAP SE
- Automatic Data Processing, Inc.
- Workday, Inc.
- Workforce Software, LLC.
- Ultimate Software
- Cornerstone OnDemand, Inc.
- IBM Corporation
- NetSuite, Inc.
Rapid Digitalization and Urbanization to Dominate Market
Several organizations have opted for digital technologies and Internet of Things services to enhance efficiency and reduce labor requirements. The increasing demand for effective management solutions may empower manufacturers to enhance the product’s adoption. Moreover, the manufacturers focus on integrating top-of-the-line technologies to improve software quality and enhance the demand for efficient services. It can be observed that with the adoption of work from home strategies, the demand for reliable software is increasing exponentially.
With the constant competitive landscape and rapid adoption of automated production strategies, manufacturers focus on implementing effective management systems to enhance the demand for the product. These factors may lead to the industry’s progressing the coming years.