Healthcare Workforce Management System Market Size, Share, and Trends 2024 to 2034

Healthcare Workforce Management System Market (By Solution: Software, Services; By Mode Of Delivery: Web & Cloud-based, On-premise; By End-use: Hospitals, Long-Term Care Centers, Nursing Homes Centers, Assisted Living Centers, Other Healthcare Institutions) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2034

  • Last Updated : July 2024
  • Report Code : 4715
  • Category : Healthcare

Healthcare Workforce Management System Market Size to Hit USD 5.20 Billion by 2034

The global healthcare workforce management system market size was USD 2.10 billion in 2023, calculated at USD 2.28 billion in 2024 and is expected to reach around USD 5.20 billion by 2034, expanding at a CAGR of 8.59% from 2024 to 2034. The healthcare workforce management system market is expected to grow significantly, driven by the shift toward value-based reimbursements and the increasing adoption of telehealth technologies.

Healthcare Workforce Management System Market Size 2024 to 2034

Healthcare Workforce Management System Market Key Takeaways

  • North America dominate the healthcare workforce management system market with a revenue share of 39% in 2023
  • Asia Pacific is expected to grow at the fastest rate in the market over the period studied.
  • By solution, the software segment has accounted revenue share of 69% in 2023.
  • By solution, the reporting & analytics segment is expected to show the fastest growth in the market over the forecast period.
  • By mode of delivery, the web & cloud-based segment held the largest share of 63% in 2023.
  • By mode of delivery, the on-premises segment is anticipated to grow at a substantial rate in the market over the forecast period.
  • By end-use, the hospital segment led the market in 2023 with revenue share of 37%.
  • By end-use, the long-term care center segment is expected to witness the fastest growth in the market during the projected period.

U.S. Healthcare Workforce Management System Market Size and Growth 2024 to 2034

The U.S. healthcare workforce management system market size was exhibited at USD 610 million in 2023 and is projected to be worth around USD 1,530 million by 2034, poised to grow at a CAGR of 8.71% from 2024 to 2034.

U.S. Healthcare Workforce Management System Market Size 2024 to 2034

North America dominate the healthcare workforce management system market in 2023. North America has established itself as the leading region in the global healthcare workforce management system market due to increasing awareness of effective labor management strategies in the healthcare sector. The region is expected to continue its growth trajectory throughout the forecast period, driven by robust technological advancements and expansion.

The United States dominates the market, benefiting from its advanced healthcare infrastructure, high adoption of technology, and strict regulatory compliance requirements. The healthcare workforce management system market in the U.S. is projected to expand significantly, fueled by the rising number of surgical procedures.

  • In July 2023, AMN Healthcare, an American company, launched the Manager Hub app, a new feature of its ShiftWise Flex™ workforce management platform. This mobile app empowers healthcare organizations with on-the-go workforce management capabilities, simplifying how they manage their staff. The app provides access to a detailed dashboard with critical insights into workforce operations, including orders, staff details, shifts, and assignments.

Asia Pacific is expected to grow at the fastest rate in the healthcare workforce management system market over the period studied. This is attributed to the region's economic expansion, notable IT sector growth, and advancements in healthcare IT. The region is poised for significant growth, driven by rising healthcare expenditures, increased awareness of workforce management solutions, and government efforts to improve healthcare infrastructure. Furthermore, the healthcare workforce management system market in Japan is projected to grow substantially over the forecast period. Japan's market leadership is supported by major manufacturers and a strong demand for healthcare workforce management systems.

  • In April 2024, AW Technologies and Asahi Kasei Medical, a core operating company of the Asahi Kasei Group, entered into an exclusive distribution agreement in Japan for AW Technologies’ TrachFlush™ device. AW Technologies is currently in the process of medical device registration of the TrachFlush in Japan, with a market launch targeted for fiscal 2024.

Healthcare Workforce Management System Market Share, By Region, 2023 (%)

Market Overview

Healthcare workforce management systems are specialized software solutions designed for the healthcare industry to enhance the efficiency and effectiveness of workforce operations. These systems are tailored for large hospitals and healthcare facilities, which offer capabilities to streamline employee management, including scheduling, leave management, payroll processing, and handling emergencies and shift changes.

In addition to these core functions, the healthcare workforce management system market plays a pivotal role in managing payroll operations, filling vacant positions promptly, and monitoring workforce performance to optimize productivity. The inclusion of features such as biometric time clocks, web-based interfaces, and mobile applications ensure accurate tracking of clock-in and clock-out times, which is essential for maintaining operational efficiency within healthcare settings.

Healthcare Workforce Management System Market Growth Factors

  • The integration of new technologies development, including cloud computing and artificial intelligence (AI), is expected to drive the healthcare workforce management system market.
  • The growing need for workforce management in the healthcare sector can fuel market growth shortly.
  • Rapid consolidations in the healthcare sector are likely to contribute to the healthcare workforce management system market expansion.

Healthcare Workforce Management System Market Scope

Report Coverage Details
Market Size by 2034 USD 5.20 Billion
Market Size in 2023 USD 2.10 Billion
Market Size in 2024 USD 2.28 Billion
Market Growth Rate from 2024 to 2034 CAGR of 8.59%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered Solution, Mode Of Delivery, End-use, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics

Driver

Rising Demand for effective human resource management

The healthcare workforce management system market is poised for growth driven by the adoption of advanced human resource management strategies leveraging modern technology. Enterprise workforce management software simplifies hiring processes, record-keeping, and performance monitoring across healthcare facilities. These efficiencies lay the groundwork for future market expansion, supported by the rising adoption of cloud-based solutions. Moreover, the proliferation of affordable mobile technologies and the demand among small and mid-sized organizations for cost-effective technological solutions further drive this trend.

  • In October 2023, the EY organization and IBM announced the launch of EY.ai Workforce an innovative HR solution that helps enable organizations to integrate artificial intelligence (AI) into their key HR business processes. This marks a pivotal next step in the collaboration between the companies and a significant milestone in the role of AI in increasing productivity within the HR function.

Restraint

Limited interoperability

Interoperability challenges among various healthcare workforce management systems and other healthcare applications create obstacles to seamless data sharing and integration. This fragmentation can result in disjointed data and hinder a unified view of workforce management across diverse departments and facilities. Meeting regulatory standards with a healthcare workforce management system creates complexities and demands considerable time and effort for implementation. Thus hampering the growth of the healthcare workforce management system market.

Opportunity

Growing adoption in developing regions

Healthcare infrastructure development is booming in developing regions, leading to a heightened demand for effective workforce management. Adoption of the healthcare workforce management system market in these areas is anticipated to rise substantially shortly. Furthermore, Major players in the global healthcare workforce management systems market are concentrating on introducing technologically advanced solutions, which is expected to open lucrative growth opportunities for the market worldwide.

  • In June 2023, Strata Decision Technology, a company involved in the development of cloud-based financial planning, analytics, and performance tools for healthcare, announced the launch of a Real-Time Workforce Management (RTWM) solution to address the financial and operational goals of the healthcare sector.

Solution Insights

The software segment led the global healthcare workforce management system market in 2023. This segment is categorized into standalone and integrated software. Regarding standalone software, the time and attendance management segment held the largest revenue share in 2023. also, these systems typically rely on software applications that can be installed on a PC or accessed via the internet browser. They generally provide features such as scheduling, time and attendance tracking, payroll management, and reporting.

Healthcare Workforce Management System Market Share, By Solution, 2023 (%)

The reporting & analytics segment is expected to show the fastest growth in the healthcare workforce management system market over the forecast period. The adoption of reporting and analytics in workforce management has been significantly influenced by the rise of cloud computing and software-as-a-service (SaaS) solutions. Additionally, the incorporation of advanced technologies like cloud-based software, mobile applications, and artificial intelligence driven analytics is anticipated to further propel the growth of this segment.

Mode of Delivery Insights

The web & cloud-based segment held the largest share of the healthcare workforce management system market in 2023. The significant advantages of cloud-based healthcare workforce management systems are the primary reasons for the segment's dominance in the base year. Cloud delivery in the healthcare industry offers benefits such as minimal setup costs, reduced IT maintenance expenses, no costs for software updates, and the added advantages of flexibility and adaptability in workforce management systems.

  • In March 2023, Fujitsu announced the launch of a new cloud-based platform that allows users to securely collect and leverage health-related data to promote digital transformation in the medical field. The new offering represents part of Fujitsu’s ongoing efforts to contribute to the creation of a healthy society as part of its vision for ‘Healthy Living’ under Fujitsu Uvance to create a sustainable world. Fujitsu will offer the new platform to medical institutions and pharmaceutical companies in Japan.

Healthcare Workforce Management System Market Share, By Mode of Delivery, 2023 (%)

The on-premises segment is anticipated to grow at a substantial rate in the healthcare workforce management system market over the forecast period. On-premise solutions involve installing and maintaining software on the organization's servers. The delivery mode significantly influences the accessibility, scalability, and cost-effectiveness of the workforce management system, which is important for healthcare organizations aiming to optimize workforce operations. These benefits are key factors driving the growing demand for on-premises software in the healthcare sector.

End-use Insights

The hospital segment led the healthcare workforce management system market in 2023. Healthcare workforce management systems are utilized in numerous hospitals to improve workforce productivity and efficiency. These systems offer multiple advantages, such as managing payroll efficiently, tracking employee shift timings, ensuring regulatory compliance, and handling human resources. Due to these significant benefits, their popularity is steadily increasing in hospitals.

The long-term care center segment is expected to witness the fastest growth in the healthcare workforce management system market during the projected period. Healthcare providers, especially long-term care facilities, are constantly looking for methods to enhance patient care. Implementation of a workforce management system can streamline operations, minimize paperwork, and optimize workforce management in care centers. Also, with an increasing emphasis on delivering superior and more efficient care, the demand for these systems in long-term care centers is anticipated to grow substantially, which can contribute to the progress of the healthcare industry.

Healthcare Workforce Management System Companies

Healthcare Workforce Management System Market Companies

  • IBM Corporation
  • Infor, Inc.
  • Cornerstone OnDemand, Inc.
  • Strata Decision Technology, LLC
  • QGenda, LLC
  • Symplr
  • Oracle Corporation
  • Kronos, Inc.
  • McKesson Corporation
  • OSP Labs
  • GE Healthcare

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.
  • 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.
  • In February 2023, ShiftMed, a healthcare staffing solution provider, announced that it has raised USD 200 million from healthcare investors Panoramic Ventures to expand its healthcare workforce management systems solutions across the region. 
  • In January 2023, ShiftMed, a healthcare staffing solutions provider, announced a partnership with UKG, which is an HR, payroll, and workforce management solution provider, for the launch of new technology for healthcare workforce management.

Segments Covered in the Report

By Solution

  • Software
    • Standalone Software
      • Time and Attendance
      • HR and Payroll
      • Scheduling
      • Talent Management
      • Reporting & Analytics
      • Others
    • Integrated Software
  • Services

By Mode Of Delivery

  • Web & Cloud-based
  • On-premise

By End-use

  • Hospitals
  • Long-Term Care Centers
  • Nursing Homes Centers
  • Assisted Living Centers
  • Other Healthcare Institutions

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

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Frequently Asked Questions

The global healthcare workforce management system market size is expected to increase USD 5.20 billion by 2034 from USD 2.10 billion in 2023.

The healthcare workforce management system market is anticipated to grow at a CAGR of over 8.59% between 2024 and 2034.

The major players operating in the healthcare workforce management system market are IBM Corporation, Infor, Inc., Cornerstone OnDemand, Inc., Strata Decision Technology, LLC, QGenda, LLC, Symplr, Oracle Corporation, Kronos, Inc., McKesson Corporation, OSP Labs, GE Healthcare, and Others.

The driving factors of the healthcare workforce management system market are the rising Demand for effective human resource management and

North America region will lead the global healthcare workforce management system market during the forecast period 2024 to 2034.

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Kesiya Chacko, a dedicated and insightful author whose expertise spans Healthcare and Cross Domain industries. With a Master's degree in Microbiology, Kesiya has built a strong scientific foundation that allows her to approach market research with both depth and precision. With over 5+ years of experience in the Market Research Industry, Kesiya has worked across various sectors, developing a nuanced understanding

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