Healthcare Workforce Management Systems Market Report Scope & Overview:

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The Healthcare Workforce Management Systems Market Size was valued at USD 1.69 billion in 2023 and is expected to reach USD 4.20 billion by 2032 and grow at a CAGR of 10.65% over the forecast period 2024-2032.

The healthcare workforce management system market is growing at a robust rate, driven by multiple key factors: the shift toward value-based reimbursements, the adoption of telehealth technologies, and the utilization of AI-driven analytics. Dealing with an ongoing labor shortage, healthcare organizations are emphasizing more on maximization of staffing and workforce cost management as high priorities. To address all these challenges, more and more providers adopt workforce management systems that contain the latest scheduling, recruiting, retention strategies, and overall staffing efficiency. They all merge data and functions into a unified interface that allows administrators to better manage their staffing needs, reduce employee turnover, and optimize human resources for long-term benefits.

In addition, advancement in cloud computing and artificial intelligence propels the market further. These innovations help health facilities manage large, multi-care hospitals with relative ease through automated processes. Among recent market developments, Strata Decision Technology launched its real-time workforce management solution in June 2023. This platform enhances nursing leadership/staff communication by providing real-time, actionable data for operational and financial decision-making. Additionally, in October 2023, Empeon announced its digital-first Scheduling solution, part of a full human capital management platform that was designed to simplify workforce management in healthcare.

One of the biggest consolidation activities taking place in the market is being done by market leaders such as Ultimate Kronos Group, Workday Inc., and Oracle Corporation. Such firms are making strategic acquisitions to strengthen their market presence. For example, Ultimate Kronos Group acquired Immedis, a global payroll provider, in June 2023, which indicated the efforts of the firm to strengthen its offerings through international payroll and workforce management solutions. While the influence of government policies like HIPAA on the market is moderate, favorable government policies that are targeted toward ensuring the safety and efficacy of workforce management systems will help enhance further growth in the market. Regional expansion is moderate and depends on the specific regulatory frameworks and demands of a particular market. For example, UKG's launch of its products in New Zealand and Australia in 2023 represents its broader strategic campaigns for increasing market penetration in these regions.

Healthcare Workforce Management Systems Market Dynamics

Drivers

• Accelerating Growth in Healthcare Workforce Management through Cloud and AI Integration

Many benefits are associated with the cloud-based healthcare workforce management solutions that are rapidly gaining major adoption. IP traffic within global clouds will grow by 30% year over year from 2015 to 2020, reaching 14.1 ZB by 2020, according to the Cisco Global Cloud Index Forecast. Several advantages are associated with cloud deployment, such as cost-cutting benefits along with quick implementation and easier increase in operational agility. This way, cloud support supports geographically distributed healthcare organizations through a unified platform that streamlines their workforce management. This led to many healthcare service providers changing their services from on-premises systems to cloud-based services to utilize the aspects of the above feature.

The growing demand for effective human resource management is further propelling the growth of the healthcare workforce management market. Advanced technologies are driving modern HR strategies to change hiring, employee records, and performance monitoring functions in healthcare organizations. Workforce management solutions in the cloud seem to be key enablers for change, making operations more fluid. The growth of the economy also spurred the penetration of low-cost mobile technologies by smaller healthcare organizations, thus continuing the market extension further.

Recently, important steps in that direction were taken with the launch of EY.ai Workforce-the new AI-based HR solution built in collaboration between EY and IBM. Such collaboration will eventually enable organizations to bring in artificial intelligence for embedding AI in all critical HR processes, thus making a significant milestone in the use of AI to drive productivity improvements in HR functions. Such innovative solutions introduce further accelerations in the process of transformation of workforce management, further increasing both efficiencies and responses to evolving healthcare sector demands.

Restraints

• Challenges in interoperability between healthcare workforce management systems and other healthcare applications hinder seamless data sharing and integration.

• The lack of integration leads to disjointed data, preventing a unified view of workforce management across different departments and facilities.

• Meeting regulatory standards with workforce management systems creates significant complexities, requiring considerable time and effort for implementation.

Key Segmentation

By Solution

The software segment dominated the healthcare workforce management system market in 2023, with more than 68% revenue share, and is likely to exhibit the highest growth during the forecast period. The segment is segmented into standalone and integrated software solutions. Within standalone software, the revenue segment of time and attendance management retained the largest share in 2023. This is because this part would play a decisive role in workforce management, where healthcare organizations could efficiently track and monitor their employees' attendance and schedules. It is seen that an increase in demand for cost optimization and improved productivity would lead to a multifold hike in the adoption of time and attendance management solutions in the healthcare sector.

Reporting and analytics segment to grow at the highest compound annual growth rate during the forecast period: Increased adoption of cloud computing and SaaS solutions has led to increased integration of advanced reporting and analytics capabilities into workforce management systems, thereby contributing to faster growth in the reporting and analytics segment. The latest advancements in cloud-based software, mobile applications, and AI analytics will also be part of this synergy which would further enhance the growth of this segment.

By Mode of Delivery

In 2023, the web and cloud-based segment led the market, capturing over 62% of the revenue share. The healthcare industry favors cloud deployment for its flexibility, cost-effectiveness, and operational simplicity. Cloud-based solutions facilitate efficient collaboration and communication among various workforce members, including frontline nursing managers, healthcare authorities, and staff, enabling them to manage large-scale staffing operations and make informed decisions. Additionally, cloud-based workforce management platforms can be seamlessly integrated with other healthcare systems, such as Electronic Health Records (EHRs), to create a unified management system. This integration enhances activity tracking and boosts operational efficiency within healthcare organizations.

The on-premises segment is anticipated to experience significant growth during the forecast period. New on-premises software offerings provide healthcare organizations with improved offline access, compliance support, customization options, and better control over data. These benefits empower organizations to have greater oversight of system updates, long-term cost management, and seamless integration with existing infrastructure. These advantages are driving the increasing adoption of on-premises software solutions in the healthcare industry.

Healthcare Workforce Management Systems Regional Analysis

North America accounted for more than 38.0% of the market share in 2023 for the healthcare workforce management system market. Growth was mainly fueled by growing healthcare expenditure, awareness of effective personnel management, increasing adoption of technology in healthcare settings, and stringent regulatory frameworks in countries like the U.S. and Canada. In the U.S., the market for healthcare workforce management systems would rise significantly as the number of surgeries has been on the increase, with America conducting 40 to 50 million surgeries annually and thus having a huge need for efficient workforce management.

Europe is also developing at a robust speed, as stringent labor laws force healthcare organizations to employ versatile workforce management systems to remain in line with guidelines about working hours, breaks, and vacations. The UK market is likely to rise because of growing demand for management solutions and cost-cutting measures along with a high adoption rate in the health domain. Germany is also on a growth trajectory due to increasing healthcare institutions adopting workforce management systems.

Asia Pacific will be leading growth in the coming years, based on rising demands for healthcare and increasing needs for effective workforce management. Among the important markets are Japan, which is already a very significant market, and China, where an increasingly large number of companies have started using cloud-based solutions.

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Key Players

• IBM Corporation - IBM Watson Talent

• McKesson Corporation - McKesson Workforce Management

• Ultimate Kronos Group (UKG) - UKG Workforce Central

• Cornerstone OnDemand Inc. - Cornerstone Learning

• Oracle Corporation - Oracle HCM Cloud

• Atoss Software - Atoss Workforce Management

• Workday Inc. - Workday Human Capital Management (HCM)

• NICE - NICE Workforce Management

• Infor - Infor Workforce Management

• RLDatix - RLDatix Workforce Management

• Hexagon AB - Hexagon Workforce Management

• SAP AG - SAP SuccessFactors

• ADP, Inc. - ADP Workforce Now

• Strata Decision Technology - Strata Workforce Management

• GE Healthcare (Api Healthcare) - API Healthcare Workforce Management

• QGenda, LLC - QGenda Scheduling

• Symplr - Symplr Workforce Management

• Kronos, Inc. - Kronos Workforce Management

• OSP Labs - OSP Healthcare Workforce Solutions

Recent Developments

In May 2024, Cornerstone (US) introduced Cornerstone Galaxy, an AI-driven workforce agility platform designed to address the workforce readiness gap. This gap is driven by the rapid pace of innovation, market shifts, and other factors that are out of sync with employees' ability to adapt. The Workforce Readiness Gap Report, created in collaboration with Lighthouse Research, highlighted that this gap is growing, with 63% of enterprise leaders expressing concerns that their workforce lacks adaptability to change, and 60% citing that AI has accelerated the pace of workplace transformation.

In February 2024, Workday, Inc. (US) entered into a partnership with Insperity, Inc. (US) (NYSE: NSP) to co-develop, brand, market, and sell a comprehensive HR solution targeted at small and midsize businesses. This collaboration offers customers the combined advantage of Insperity’s Workforce Optimization premium services, including dedicated HR specialists, payroll and benefits, risk management, and compliance support, alongside Workday Human Capital Management (HCM).

In November 2023, Intelliworx, a provider of workflow and process automation software, unveiled a new workforce management solution tailored specifically for rural hospitals. This innovative software is expected to help smaller healthcare facilities lower recruitment costs, streamline the hiring process, and enhance the experience for both hospitals and job candidates. With the introduction of this tool, rural hospitals will be able to fill vacancies more quickly, ultimately enhancing their capacity to deliver high-quality healthcare services to patients.