Workforce management applications are no longer just systems of record and operation; they are evolving into systems of differentiation and transformation.
The 2023 Gartner® Market Guide for Workforce Management Applications shares that capabilities have to transform employee experience and deliver operational efficiency. It recommends mitigating the risks associated with continuous deployment by migrating away from legacy workforce management (WFM) applications (away from on-premises and single-tenant, vendor-hosted applications).
According to this year’s report, applying AI in WFM solutions for employees and managers adds significant business value to WFM. By 2030, AI-enabled skills management will be a core capability of WFM and used daily to manage hourly paid workers’ deployment.
2023 Gartner® Market Guide for Workforce Management Applications
By 2025, 80% of large enterprises with hourly workers will have invested in WFM to support the employee experience and/or digital workplace initiatives.
Key Findings from the 2023 Gartner® Market Guide
This year’s Market Guide highlights certain key findings, strategic planning assumptions, and market recommendations that decision-makers must be cognizant of while navigating their workforce management journey.
- Next-Gen Workforce Management Skills Management: AI-enabled skills management is an emerging capability in workforce management (WFM). This capability can transform how employees are scheduled for work by aligning talent to work based on skills matching. However, few vendors support full AI-enabled skills management in WFM capabilities.
- Outage of UKG’s Kronos Private Cloud Products: Due to a ransomware attack, this outage has accelerated the end-of-life of these products, leading customers to migrate away from legacy workforce management applications.
- Worker Shortage and Market Forces: Supply chain disruptions and limited product availability necessitate investment in advanced scheduling and planning functions for effective worker deployment and flexible work patterns.
Fragmented Market: The market offers varied product capabilities, costs, and applicability to different worker types and work patterns.
Strategic Planning Assumptions and Market Recommendations
- By 2025, 80% of large enterprises with hourly workers will have invested in WFM to support the employee experience and/or digital workplace initiatives.
- By 2025, 60% of global midmarket and large enterprises will have invested in a cloud-deployed human capital management (HCM) suite for administrative HR and talent management. However, organizations will still need to source 20% to 30% of their HR requirements (often including WFM) from other solutions.
- By 2030, AI-enabled skills management will be a core capability of WFM and used daily for managing how hourly paid workers are deployed.
Modern tools, like the WorkForce Suite, tackle these challenges head-on, prioritizing employee experience, flexible scheduling, and retaining valuable workers. Happy and supported workers positively impact their organizations, boosting productivity and enhancing customer satisfaction.
Your Next Step
We invite you to read the 2023 Gartner® Market Guide for Workforce Management Applications to unconver why a robust WFM suite with strong overall functionality, depth, and broad industry usage is crucial for organizations looking to lead workforce innovation.
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Gartner, Market Guide for Workforce Management Applications, 2023, Sam Grinter, Ron Hanscome, Kelsie Marian, Ranadip Chandra, Josie Xing, David Bobo, 16 August 2023.
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