An Overview of Workforce Management Software and the Top Tools in 2024

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What is workforce management?

Workforce management is the practice of continuously optimizing the productivity and efficiency of an organization’s employees. It encompasses activities such as employee time and attendance tracking, scheduling, forecasting labor demand, and maintaining compliance with labor laws and regulations.

What is workforce management software?

Workforce management software is a tool or suite of tools that helps organizations govern all aspects of WFM. Ultimately, this software exists to make key processes (e.g., staffing projects, managing time off, analyzing workforce data) as easy as possible for HR professionals, managers, supervisors, and other personnel responsible for overseeing workforce operations.

To that end, automation and artificial intelligence (AI) are often incorporated into workforce management software to streamline critical tasks so users can achieve their objectives with less manual effort. Time- and cost-saving benefits drive strong demand in this category — the workforce management software market was valued at $8.8 billion in 2023 and is expected to grow at over an 8.5% CAGR between 2024 and 2032.

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Most Purchased Workforce Management Software

Workday is a leading software in the Workforce Management Software category, holding a prominent position with a strong market presence and significant financial impact, based on Vendr's internal transaction data. In this competitive space, Rippling secures the second position, showing substantial growth and strengthening their place within the industry.

Most Renewed Workforce Management Software

Vendr's transaction data indicates that Workday ranks highly in terms of renewal within the Workforce Management Software category, which suggests a high level of customer retention and satisfaction, showing the sustained value of their offerings. Rippling maintains a strong position as well, reflecting their steady delivery of service and the loyalty they have developed within their customer base.

Most Recently Purchased Workforce Management Software in 2024

Vendr's most recent 2024 internal transaction data reveals that Workday has seen significant recent purchases, pointing to effective strategies in attracting a considerable number of new customers in the Workforce Management Software category. Rippling also demonstrates significant performance in acquiring new customers, underscoring their active approach to reaching new market segments.

What types of companies use workforce management software?

While virtually any business can adopt workforce management software, there are certain types of companies that benefit more than others. Organizations that get the most out of WFM software typically have one or more of the following:

• Large workforce.
• Service-oriented business model.
• High total cost of labor.
• Dynamic staffing needs.
• Hybrid or fully remote workforce.
• Compliance requirements.

Retail businesses often have fluctuating staffing needs due to seasonality and shifting customer demands. Workforce management software helps retailers optimize scheduling and manage part-time and full-time employees to ensure adequate coverage.

• Retail businesses often have fluctuating staffing needs due to seasonality and shifting customer demands. Workforce management software helps retailers optimize scheduling and manage part-time and full-time employees to ensure adequate coverage.
• Hospitality businesses such as hotels, restaurants, and travel booking companies rely on workforce management software to schedule staff across complex schedules, manage reservations, track employee timesheets, and streamline payroll processes.
• Financial services businesses such as banks and insurance companies adopt workforce management software to optimize people-intensive operations (e.g., contact centers, branches, back-office support) while maintaining regulatory compliance.
• IT services businesses choose workforce management software to match the technical skills of employees with the right project requirements. This can also include tracking skills and certifications to identify potential gaps and plan training programs.
• Healthcare organizations use workforce management software to assist in scheduling nurses, physicians, and other healthcare professionals to ensure proper staffing levels to meet patient needs while adhering to strict compliance regulations.

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Signs your company needs workforce management software

Still unsure if your organization would benefit from WFM software? Here are sure signs that you need a solution to streamline your workforce management:

• Managers and HR team members spend hours each week juggling calendars, managing schedules, and working on repetitive administrative tasks.
• Management struggles with poor workforce engagement because employees can’t communicate their scheduling needs and don’t feel in control of their work.
• You notice that customer satisfaction is declining due to staffing errors or employees making mistakes when they feel overwhelmed or improperly utilized.
• There is a lack of visibility into workforce data and key metrics such as employee attendance, productivity, turnover rates, or labor costs.
• The organization is experiencing rapid expansion but managers aren’t sure how to scale workforce management alongside company growth

If you identify with any of these problems, it’s time to develop a plan to purchase a workforce management solution.

The 5 most important features of workforce management tools

Not all workforce management software is created equal. Ideally, you should choose a solution with a robust suite of features (rather than pay for and manage multiple subscriptions). Some of the most valuable features to prioritize when evaluating WFM software include:

Employee scheduling

Look for an intuitive, easy-to-use interface that allows you to create, manage, and communicate employee schedules with minimal effort. Customizable templates, for example, help users quickly build schedules based on different shift patterns, business needs, and employee preferences. Some tools even have automation capabilities that intelligently create schedules based on predefined rules, employee availability, skill levels, and more.

Attendance and absence management

WFM software should also give employees the ability to log their hours so managers can understand the workforce’s attendance and absence records at a glance. Absences might include unexpected leave like sick days or bereavement, as well as planned leave like holidays and paid time off. Many tools will also send employees notifications about the number of hours or days they’ve taken off so they can manage their time and avoid hitting any limits.

Demand forecasting

Some industries have fluctuating customer demand that requires the business to quickly scale its workforce up or down. Advanced WFM solutions make this process less stressful via a forecasting engine that uses historical data (e.g., staffing levels, transaction volumes, handle time) to identify trends and predict future demand. Planning ahead to avoid an over- or under-staffed workforce improves profitability and customer satisfaction.

Self-service capabilities

Self-service portals, websites, and/or mobile apps facilitate a better employee experience by allowing workers to view schedules, request time off, swap shifts, and manage their work-related information independently. In addition to reducing administrative burden for managers and HR teams, self-service features empower employees to communicate and manage their preferred work-life balance.

Real-time analytics and reporting

Real-time analytics and reporting capabilities help make sense of the vast amount of data that your WFM software processes and generates. These features automatically surface insights into workforce trends, labor costs, productivity levels, and changes in key metrics for improved decision-making and employee management. Best-of-breed workforce management solutions can integrate data and insights into business intelligence tools (e.g., Power BI, Tableau, Qlik).

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10 questions to ask a workforce management software vendor

Now that you understand the must-have features of WFM software and the reasons why your business may want to invest, let’s take a look at some questions you should ask when evaluating a potential vendor.

Asking the right questions helps you gain a better understanding of each solution’s functionality to determine if it’s the best fit for your business. We recommend asking:

• What are your solution’s key features and capabilities?
• How long does the onboarding and implementation process take?
• Do you offer training and support resources for users?
• Does your software integrate with our current tech stack?
• Can it scale to accommodate our growth and evolving needs?
• What security measures are in place to protect data and ensure privacy?
• Can we get a demo or walkthrough of the software?
• What pricing models and licensing options are available for the software?
• Why should we choose you over competitors?
• Do you have case studies for similar organizations that use your solution?

If you prefer to do your own research before talking to a salesperson, you may be able to find answers to some of these questions on each solution’s website. For information that isn’t shared as publicly (e.g., pricing ranges, license scopes, contract details) you can use the Vendr Buying Platform to access exclusive data and insights from over $4 billion of SaaS spend.

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Workforce management software FAQs

Here are some additional questions that often surface from those evaluating workforce management software for purchase.

Which teams in a company typically use WFM software?

While virtually anyone can use WFM software due to its intuitive nature, the teams that often have the most hands-on use of these solutions include HR, management, operations, customer service, field service, and finance teams.

What are the main benefits of using WFM software?

The main benefits of WFM software include greater efficiency and productivity, related cost savings, stronger employee engagement, enhanced customer satisfaction, and an improved compliance posture.

Can SaaS companies use workforce management software?

Absolutely. Just like companies in other industries, SaaS businesses often have large, diverse teams that stand to benefit from better management, accountability, and connection through WFM software.

How can I measure the effectiveness of workforce management software in my organization?

While the specific KPIs vary from business to business, some common metrics used to measure the effectiveness of WFM software include absenteeism rate, labor cost variance, schedule efficiency, employee turnover rate, customer satisfaction scores, and total cost of workforce.

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