The way enterprises manage and engage with their workforce is undergoing a major transformation. External factors like the talent shortage, supply chain issues, and evolving worker preferences are driving organizations to rethink how they deploy, schedule, and communicate with employees. The increased needs of both employers and employees have spurred ongoing technology innovation and disruption in how large enterprises engage their workforce.
Advancements in workforce management (WFM) technology are enabling enterprises to create a more agile, data-driven approach to human capital management. These solutions are no longer just systems of record and operation; they are evolving into systems of differentiation and transformation.
According to the 2023 Gartner® Market Guide for Workforce Management Applications, this sudden demand for workforce management technology is driven by the “’talent crunch’ or ‘great resignation’ that began in the second half of 2021 (and continues today).” This has pushed many employers to renew their focus on employee experience concerns in the hopes of improving worker efficiency and addressing factors that contribute to attrition.
Additionally, per the report, “HR technology leaders go to market due to a lack of historic investment and as products approach end-of-life.” As effective labor management and quality employee experience become market differentiators for large organizations, HR leaders must consider how new workforce management capabilities can support an engaged workforce and recognize that even if they choose not to invest in these solutions, their competitors will.
Embracing modern workforce management is an increasing imperative for large enterprises, especially ones with deskless or hourly workers, with the report stating that by 2025, 80% of large enterprises are expected to invest in WFM to support the employee experience and/or digital workplace initiatives. Companies that don’t make this transition risk lagging those who make investments in their workforce.
Here are three key takeaways from Gartner’s® recent report: