What You Need to Know About 2023 Workforce Management Market Trends
Workforce management (WFM) platforms have changed from basic systems of record and operation to systems of transformation as technology has continued to improve and employee experience has been added.
The recently released 2022 edition of the Gartner® Market Guide for Workforce Management Applications says that by 2025, 80% of large companies with hourly workers will have invested in WFM to support employee experience and/or digital workplace initiatives. This is a very important change in the market for managing employees. In this post, let’s look at some of the guide’s other major findings to see what market trends are happening right now.
(For more in-depth information, check out the full Gartner Market Guide 2022 for Workforce Management Applications.)
Ability to change and listen all the time
Modern workforce management tools can now be set up to help deskless shift workers stay on the job longer by giving them more flexibility in their work schedules and “continuous listening” analysis through built-in or integrated surveying tools. Continuous listening means using surveys and feedback from employees on a regular basis (as opposed to the standard annual or bi-annual assessment).
Flexibility is still one of the most important things that employees either like or want to see more of in their jobs. In a FutureForum survey, a whopping 95% of the people asked said they wanted roster flexibility. Given this trend, any WFM solution needs to be able to balance multiple shift schedules in a way that allows for flexibility and keeps the work process of an organisation as a whole from falling apart.
A shortage of workers is another reason why flexible schedules are needed. This problem is made worse by problems with the supply chain and the limited number of products that are available in many industries and places. Advanced scheduling and planning tools make it easier to use the workers you already have, preventing costly over- or under-staffing.
It’s not worth the risk to use old WFM applications.
In 2021, a well-known human resources management company was hit by a huge ransomware attack that put the information and paychecks of millions of workers at risk. The effects of this attack are still being felt. For example, many companies have moved faster away from legacy WFM applications and towards solutions and vendors that are more stable and secure. The market shift from on-premises application hosting to cloud-based hosting has made data management for their clients more stable and secure. This has helped them avoid many of the weaknesses that ransomware attacks take advantage of.
This migration has been so good for security that Gartner recommends that any on-premises or single-tenant, vendor-hosted cloud WFM applications be moved to the latest generation of cloud solutions within the next one to two years to reduce risk. Gartner thinks that by 2023, at least 99% of new sales of WFM applications will use cloud-based deployment models. This is based on how things are going now. Also, by 2025, 60% of global midmarket and large enterprises will have invested in a cloud-deployed HCM suite for administrative HR and talent management. But they will still need to use other solutions for 20% to 30% of their HR needs, which often includes WFM.
A fragmented market
Different industries have different needs, which has led to a lot of different industry-specific solutions that vary a lot in what they can do, how much they cost, and how well they work for different types of workers and different ways they work. A strong, sophisticated platform that can handle the different, complicated needs of any industry is often a better choice.
Customers who want to use WFM for their business should be critical and thorough when evaluating potential vendors. Requests for proposals (RFPs) can be used to measure the different levels of suitability. Engaging with more than one vendor, even if they are in different categories, can help potential clients understand the unique strengths of each solution.
There are more options than ever when it comes to choosing a workforce management provider, which is a reflection of how different work is today. The 2022 Gartner Market Guide for Workforce Management Applications is a useful tool for any business looking for new digital ways to manage its workforce. It can help you understand how vendor solutions are spread out, the risks of legacy and non-cloud-based systems, and the benefits of flexible schedules and listening all the time.
WorkForce Software is the first company in the world to offer workforce management solutions that are also able to improve the employee experience. The WorkForce Suite is enterprise-grade and ready for the future. It will adapt to your organization’s needs, no matter how different your pay rules, labour regulations, and scheduling needs are. It will also give your employees a better experience when and where they work.