Healthcare Workforce Management System Market Size, Share, & Trends Analysis Report By Solution (Software, Services), By Mode Of delivery (Web & Cloud Based, On-Premise), By End-Use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global healthcare workforce management system market size was valued at USD 1.9 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 13.2% from 2024 to 2030. The healthcare workforce management system market is expected to grow significantly, driven by the shift towards value-based reimbursements and the increasing adoption of telehealth technologies and AI-driven analytics. Efficient staffing has become a top priority for the healthcare industry, with managing staffing expenses being a critical concern for providers. To address these challenges, healthcare organizations are increasingly turning to workforce management systems as a strategic tool that empowers administrators to optimize staffing comprehensively. These systems consolidate essential data and functions into a unified interface, streamlining scheduling, recruiting, and retention strategies to increase operational efficiency and cost-effectiveness.

In 2022, the Syntellis Performance Solutions report highlighted the significant impact of nationwide labor shortages on hospitals and health systems in the U.S. Throughout the year, these organizations faced heightened labor costs, struggled to fill staffing gaps, and experienced downstream effects on patient care. Notably, the report revealed a 22.5% increase in hospital total expense per patient, measured by median Total Expense per Adjusted Discharge, compared to pre-COVID-19 pandemic levels.As healthcare organizations grapple with labor shortages, the need for efficient healthcare workforce management becomes evident. These systems not only reduce employee turnover but also optimize human resource operations for sustained long-term benefits.

Furthermore, the healthcare workforce management market is witnessing a surge in new technologies development and integration, including cloud computing and artificial intelligence (AI). The automation of processes enables healthcare facilities to efficiently oversee multi-care hospitals.

The workforce management system is designed to help healthcare organizations manage their services effectively by allocating labor and staff efficiently, thus increasing productivity. To achieve this, companies are developing software for efficient workforce management, which is expected to drive market growth. For instance, in June 2023, Strata Decision Technology launched the Real-Time Workforce Management (RTWM) solution. This solution is specifically designed to meet the financial and operational objectives of nursing leaders. It builds on the existing StrataJazz platform to provide nursing leadership with accurate and practical data that enhances communication between leaders and staff.

Market Concentration & Characteristics

Degree of innovation: The healthcare workforce management system market is witnessing a high degree of innovation, with several market players launching new products to improve their market penetration. For instance, in October 2023, Empeon launched its Scheduling solution, a digital-first addition to Empeon's comprehensive all-in-one HCM platform. This new product, which includes payroll, time and management, benefits management, etc, aims to simplify and enhance healthcare workforce management.

Level of M&A activities: The impact of merger & acquisition on the market is high due to several key market players including Ultimate Kronos Group, Atoss Software, Workday Inc., Strata Decision Technology, Oracle Corporation, GE Healthcare (Api Healthcare), involved in merger and acquisition activities to expand their market presence. For instance, In June 2023, Ultimate Kronos Group., entered to acquire Immedis a payroll provider with technology and services supporting over 160 countries. Following this acquisition, UKG is expected to launch UKG One View later in 2023.s

Impact of regulations: The impact of regulations on the healthcare workforce management system market is moderate. However, the market is expected to experience growth due to favorable government policies and laws that ensure the safety and efficacy of healthcare workforce management system services. Market players need to consider regulations such as HIPAA (Health Insurance Portability and Accountability Act) during healthcare workforce management software development to protect the privacy and security of patient health information in the U.S. healthcare system.

Regional expansion: The level of regional expansion in the market is moderate due to changes in regulatory frameworks and the specific demands of target customers in low- and medium-income countries. However, some of the market players are expanding their presence in various regions to gain market share. For instance, in May 2023, Ultimate Kronos Group a provider of payroll, HR, and workforce management solutions introduced UKG Strategic Workforce Planning in New Zealand and Australia. UKG's product launch in these countries is a result of the company's acquisition of Quorbit, a UK-based startup that specializes in long-term workforce planning for the retail and healthcare sectors.

Solution Insights

Based on the solution, the software segment dominated the market with a revenue share of over 68% in 2023 and is expected to witness the fastest growth during the forecast period. This segment is divided into standalone and integrated software. In terms of standalone software, the time and attendance management segment accounted for the largest revenue share in 2023. This segment is an important component of workforce management software as it helps healthcare organizations to efficiently manage their workforce by tracking and monitoring employee attendance, and schedules. With the increasing demand for cost optimization and productivity in the healthcare industry, the adoption of time & attendance management solutions is expected to grow significantly.

Reporting & analytics segment is expected to grow at the fastest CAGR during the forecast period, owing to the rise of cloud computing and software-as-a-service (SaaS) solutions have played a significant role in adopting reporting & analytics in workforce management. Furthermore, the integration of advanced technologies such as cloud-based software, mobile applications, and artificial intelligence-driven analytics is expected to further boost the growth of this segment.

Mode Of Delivery Insights

Based on mode of delivery, web & cloud-based segment dominated the market with a revenue share of over 62% in 2023. The healthcare industry prefers cloud deployment for its flexibility, cost-saving benefits, and ease of operations. Cloud software enables efficient collaboration and communication among all members of the workforce, including frontline nursing managers, authorities, and staff, allowing them to manage staff on a larger scale and make informed staffing decisions.

Cloud-based workforce management platforms can be integrated with other healthcare solutions such as Electronic Health Records (EHRs) to provide a comprehensive management system. The integration of EHRs with cloud-based workforce management software enables better tracking of activities and increased efficiency in healthcare organizations.

The on-premises segment is expected to have substantial growth during the forecast period. The availability of new on-premises software provides healthcare organizations with enhanced offline accessibility, compliance adherence, customization, and data control. This empowers organizations with greater control over system upgrades, long-term cost considerations, and seamless integration with existing systems. These key advantages are driving the increasing demand for on-premises software adoption in the healthcare industry.

End-Use Insights

Based on the end use, the hospital segment accounted for the largest revenue share, over 36% in 2023. To optimize the limited resources and streamline operations, workforce management solutions have become an essential tool for healthcare organizations. These software solutions offer a comprehensive platform that integrates patient information, medical records, appointment scheduling, and inventory management. By aligning the available resources with patient demographics and flow, the healthcare workforce management system enhances efficiency, coordination, and decision-making. With hospital facilities emerging as a key contributor, the market is set to expand, addressing the evolving needs of healthcare organizations in delivering seamless and patient-centric service.

The long-term care center segment is expected to experience the fastest growth during the forecast period. Healthcare providers, including long-term care facilities, are actively seeking ways to improve patient care. A workforce management system can help simplify processes, reduce paperwork, and improve workforce management in care centers. As the focus on providing better and more efficient care increases, the demand for healthcare workforce management systems in long-term care centers is expected to rise significantly, contributing to the overall advancement of the healthcare industry.

Regional Insights

North America region held the largest market share of over 38% in 2023. This can be attributed to various factors such as increasing healthcare expenditure in the region, growing awareness of effective personnel management in the healthcare industry, growing technological adoption in clinical and hospital settings, and strict regulatory frameworks for the healthcare workforce in countries like the U.S. and Canada.

U.S. Healthcare Workforce Management System Market Trends

The healthcare workforce management system in the U.S. is anticipated to grow significantly over the forecast period, owing to the increasing number of surgical procedures in the U.S. For instance, a study by NCBI reveals that the U.S. witnesses 40 to 50 million surgical procedures annually, highlighting the important need for efficient workforce management in healthcare.

Europe Healthcare Workforce Management System Market Trends

The Europe healthcare workforce management system is anticipated to grow significantly due to stringent regulations in Europe that have necessitated the implementation of robust workforce management systems. Compliance with labor regulations, including working hours, breaks, and vacation policies, is crucial for organizations operating in the region.

The healthcare workforce management system market in the UK is expected to grow significantly over the forecast period. This can be attributed to the increasing demand for management systems in the healthcare industry, the need to reduce healthcare costs, and the growing adoption of workforce management solutions in the healthcare sector.

Germany healthcare workforce management system market is expected to grow significantly over the forecast period, owing to the growing adoption of workforce management systems in healthcare settings.

Asia Pacific Healthcare Workforce Management System Market Trends

The healthcare workforce management system market in the Asia Pacific is expected to witness the fastest growth over the forecast period. With the increasing demand for healthcare services in the region, there is a growing need for efficient management of the healthcare workforce.

Japan healthcare workforce management system market is expected to grow significantly over the forecast period. This is due to the country's leading position in the market, driven by major manufacturers and a high demand for healthcare workforce management systems.

The healthcare workforce management system market in China is expected to witness growth due to the growing adoption of cloud-based solutions, rising healthcare expenditure, and the presence of a large pool of skilled professionals.

Key Healthcare Workforce Management System Market Company Insights

The market is highly fragmented, with the presence of many country-level players. Some of the emerging players are OSP Labs, QGenda, LLC, Symplr, Quinyx AB, WorkForce Software, LLC., and ActiveOps PLC. Companies are enhancing their solutions with additional capabilities, such as compliance, analytics, and vendor integration, to gain a competitive advantage in the market.

Recent Developments

• In November 2023, Intelliworx, a provider of workflow and process automation software, launched an innovative workforce management software designed specifically for rural hospitals. This innovative solution is anticipated to aid smaller healthcare facilities in reducing their recruitment costs, streamlining the hiring process and enhancing the overall experience for both hospitals and potential candidates. With this new software, rural hospitals will be able to fill open positions in a shorter amount of time, ultimately improving their ability to provide quality healthcare services to patients.

• In April 2023, Workday, Inc., a provider of cloud-based enterprise management solutions, formed a strategic partnership with Alight, Inc. to offer HR and payroll professionals a simplified and integrated payroll solution on a global scale. The partnership will integrate Alight's innovative workforce technology platform, Alight Worklife, with Workday Human Capital Management on a unified digital platform. This unified solution aims to provide organizations with a seamless and consistent experience for managing their multinational workforce, enabling HR and payroll professionals to efficiently handle the challenges of managing a global healthcare workforce.

• In March 2022, QGenda introduced ProviderCloud, a platform designed for healthcare providers' operations. This tool enables healthcare organizations of any scale to have a comprehensive view of their entire workforce and offers useful data to providers. This support allows them to provide high-quality patient care where it is needed.

Healthcare Workforce Management System Market Report Scope

Global Healthcare Workforce Management System Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global healthcare workforce management system market report based on solution, mode of delivery, end use, and region.

• Solution Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

    • Standalone Software

      • Time and Attendance

      • HR and Payroll

      • Scheduling

      • Talent Management

      • Reporting & Analytics

      • Others

    • Integrated Software

  • Services

• Mode Of Delivery Outlook (Revenue, USD Million, 2018 - 2030)

  • Web & Cloud Based

  • On-Premise

• End-Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Long-term Care Centers

  • Nursing Homes Centers

  • Assisted Living Centers

  • Other Healthcare Institutions

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait