Healthcare Workforce Management System Market Size, Share & Trends

Updated on : September 24, 2024

Overview of the Healthcare Workforce Management System Market

Healthcare workforce management systems market forecasted to transform from 1.7 billion in 2024 to USD $2.8 billion by 2029, driven by a CAGR of 10.1%. The comprehensive research encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics.

Factors such as growing demand for workforce optimization and mobile applications, rising adoption for cloud-based healthcare workforce management solutions, and increasing need to restrict healthcare costs through effective management of healthcare are driving the market. However, higher costs of deployment limit greater adoption of workforce management systems may restrain the growth of this market to a certain extent.

Healthcare Workforce Management Systems Market Trends

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Global Healthcare Workforce Management Systems Industry Dynamics

DRIVER: Increasing adoption of cloud-based healthcare workforce management solutions

The cloud-based deployment of healthcare workforce management solutions has gained significant traction. According to the Cisco Global Cloud Index Forecast, the global cloud Internet Protocol (IP) traffic is projected to grow at a CAGR of 30% during 2015–2020. The cloud-based deployment model provides advantages such as lucrativeness, easy and extreme speed of deployment, and more agile management and operation of workforce solutions. The cloud platform caters to the requirement of geographically dispersed business units by offering one consolidated platform. To leverage the advances of this technology, organizations are moving from on-premises workforce management solutions to workforce management solutions deployed in the cloud.

RESTRAINT: Privacy & Data Security Concerns to restrain the growth of healthcare workforce management systems market

The healthcare workforce management systems help greatly in managing the healthcare workforce efficiently; however, easy access of employee data to HR and managers and self-service provision for employees has led to greater data risk and liability. The wide spread of employee-related data further leads to privacy and security risks which may lead to increase in the incidences of data breaches.

In 2021, the HIPAA Journal documented 712 healthcare data breaches in the US, an surge of 10.9% over the total number of breaches tracked in 2020. Between 2009 and 2021, 4,419 healthcare data breaches of 500 or more records have been stated to the HHS Office for Civil Rights. Those breaches have risen in the loss, theft, exposure, or impermissible disclosure of 314,063,186 healthcare records. Thus, generating a safe communication platform is a major challenge met by IT vendors catering to the healthcare industry. Potential safety concerns related to HCIT systems may lead to a increase in the sense of insecurity among users and, hence, restrain their adoption until protected workforce management solutions are available in the market.

OPPORTUNITY: Growing competitiveness to drive workforce optimization in the healthcare industry

Healthcare workforce management systems provide organizations with various benefits and profitable outcomes. Amidst the resource crunch, in order to compete, hospitals need to attract, manage, and retain the best talent while managing costs and processes effectively to deliver high-quality patient care. Therefore, hospitals need effectively utilize advanced tools and processes to leverage their biggest asset and largest expense—employees.

Thus, with growing competitiveness in the healthcare industry, there will be a greater demand from healthcare providers to effectively manage their workforce, while ensuring cost optimization. This provides a greater opportunity for healthcare workforce management systems vendors to penetrate into the growing healthcare industry across the world. Moreover, creating a greater awareness of the operational, functional, and economic benefits of workforce management systems will further help fuel the demand for workforce management systems from healthcare provides across the world.

Challenge: Integration Concerns Hindering the Market

Integrating workforce management systems with existing healthcare information systems (HIS) presents several challenges. These obstacles can impact the seamless flow of data and limit the effectiveness of workforce management solutions. Many healthcare organizations rely on outdated legacy systems that may not be compatible with modern workforce management solutions. Integrating new systems with these old technologies can be difficult and costly. Integrating new technologies into existing workforce management systems is complex, involving technical, operational, and cultural challenges. It's crucial to align technology solutions with the organization's strategic goals to enhance rather than disrupt existing workflows. This requires thorough planning, evaluating various technology options, and engaging stakeholders across the organization to ensure buy-in and support. Successful integration also hinges on providing adequate training and resources to employees so they can effectively leverage new tools.

By end user, hospitals were the largest market for healthcare workforce management systems industry in 2023.

On the basis of end users, the healthcare workforce management systems market is divided into hospitals, nursing homes, assisted living centers, long-term care facilities, and other end users. In 2023, the hospitals segment accounted for the largest market due to increasing consolidation in the healthcare provider industry and rising adoption of workforce management systems in hospitals across the globe. Workforce management software systems are now recognized as basic elements of hospitals to keep track of employees and provide the best care to patients. In order to enhance the quality of care and optimize the workflow, hospitals have to schedule skilled resources at the right place at the right time, which, if not managed properly, could lead to complexities. Workforce management systems are used to reduce such complexities involved in the process of managing shift differentials of numerous healthcare professionals and to facilitate the analysis of employee data for healthcare administrators at any given point in time.

By organization size, large enterprises are expected to dominate the healthcare workforce management systems industry in 2024.

Based on organization size, the healthcare workforce management systems market is segmented into large enterprises, medium enterprises & small enterprises. Large enterprises accounted for the largest share of the healthcare workforce management systems market. Growing need to analyze workforce management data for achieving organizational goals is expected to drive healthcare workforce management solutions and services adoption among large enterprises.

By region, North America was the largest regional market for healthcare workforce management systems industry in 2023.

Based on region, the healthcare workforce management systems market is bifurcated into North America, Europe, the Asia Pacific, Latin America, Middle East & Africa. North America was the largest regional segment of the overall market with a share followed by Europe in 2023. The healthcare workforce management systems have many opportunities within the US considering the availability of many large hospitals and health systems, changing regulations, increasing demand for health professional workforce and driving the market growth in North America.

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Prominent players offering healthcare workforce management systems industry include Infor (US), UKG Inc. (US), Oracle Corporation (US), Automatic Data Processing, Inc. (US), SAP SE (Germany), Workday, Inc. (US), ATOSS Software AG (Germany), WorkForce Software, LLC.(US), Paycor HCM,Inc. (US), Dayforce, Inc. (US), Zoho Corporation Pvt. Ltd. (US), Connecteam (US), Cornerstone (US), Strata Decision Technology (US), symplr (US), Rippling People Center Inc. (US), Bamboo HR LLC. (US), Hireology (US), Deputy (Australia), Paylocity Holding Corporation (US), Shiftboard, Inc. (US), Humanforce Holdings Pty Ltd (Australia), T3 Workforce (Australia), Legion Technologies, Inc. (US), Quinyx AB (Sweden)

Scope of the Healthcare Workforce Management Systems Industry:

The study categorizes the healthcare workforce management systems market to forecast revenue and analyze trends in each of the following submarkets:

By Component

• Software
• Standalone Software
• Time & Attendance Management Software
• Scheduling Software
• Talent Management Software
• HR & Payroll Management
• Workforce Analytics
• Others Standalone Software
• Integrated Software
• Services
• Support & Maintenance Services
• Optimization/Consulting Services
• Implementation Services
• Education/ Training Services

By Deployment

• On-premises Model
• Cloud-based Model
• SaaS- Based/Web-based Model

By Organization Size

• Large
• Medium
• Small

By End User

• Hospitals
• Nursing Homes
• Assisted Living Centers
• Long-term Care Facilities
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC countries
  • Rest of Middle East & Africa

Recent Developments of Healthcare Workforce Management Systems Industry:

• In May 2024 Cornerstone (US) launched Cornerstone Galaxy, an AI-powered workforce agility platform, aimed at solving the workforce readiness gap. The workforce readiness gap is created by the pace of change from innovation, market changes, and other factors becoming out of sync with a workforce’s ability to adapt. The Workforce Readiness Gap Report launched in partnership with Lighthouse Research, revealed this gap is widening with 63% of enterprise leaders responding that they don’t believe their workforce is adaptable to change and 60% who believe that AI has increased the pace of workplace change.
• In February 2024, Workday, Inc. (US) partnered with Insperity, Inc. (US) (NYSE: NSP) to jointly develop, brand, market, and sell a preeminent full-service HR solution for small and midsize businesses. Through this partnership customers will have the benefit of Insperity’s Workforce Optimization premium service experience, which includes dedicated HR specialists, payroll and benefits, risk management, and compliance support, along with Workday Human Capital Management (HCM).
• In February 2023, Infor (US) revealed Infor Clinical Science, part of the Infor Workforce Management suite. This application usages an evidence-based methodology to determine the workload of each patient, accounting for both direct and indirect workloads, to provide leaders with a whole picture of labor requirements for each shift, unit, or department, all based on documents already arising in the electronic medical record (EMR).
• In January 2023, Strata Decision Technology launched a (US) Real-Time Workforce Management (RTWM) solution, designed to address the financial and operational goals of nursing leaders. Building upon the robust StrataJazz platform, the RTWM solution equips nursing leadership with precise, actionable data aimed at enhancing communication between leaders and staff.

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