As the world of work undergoes dramatic transformation, businesses are investing heavily in smarter, more agile workforce management (WFM) technologies. According to a new report by leading technology research and advisory firm Information Services Group (ISG), the modern workplace demands WFM tools that go far beyond traditional scheduling and attendance — embracing artificial intelligence, cloud platforms, and employee-centric design to meet the needs of today’s workforce.
The ISG Provider Lens™ Workforce Management – Solutions and Services 2025 report reveals how businesses are rethinking the way they manage labor, driven by the rise of hybrid work, evolving employee expectations, and increasingly complex global compliance requirements. Workforce management, once a back-office function, is now front and center in corporate strategy, helping organizations balance flexibility, productivity, and engagement.
“Organizations are no longer using WFM tools just to track hours worked,” said, Partner at ISG. “They’re using them to forecast labor needs, understand employee well-being, optimize productivity, and ensure compliance across borders. Workforce management is now a key enabler of business agility.”
From Reactive to Proactive: A Shift in Workforce Strategy
The ISG report identifies a fundamental shift in how companies approach workforce planning. Traditional WFM systems were designed to help HR and operations manage time and labor processes reactively. But in 2025, leading organizations are turning to AI-driven platforms that can predict, adapt, and evolve in real time.
Key capabilities driving this evolution include:
- AI and Predictive Analytics – Organizations are leveraging AI for demand forecasting, automated scheduling, labor optimization, and even to detect potential burnout or productivity dips before they occur.
- Cloud-Native Architecture – Cloud-based WFM platforms are increasingly replacing legacy systems due to their flexibility, faster updates, mobile accessibility, and better integration with HR, payroll, and ERP platforms.
- Mobile-First, Self-Service Experiences – Employees expect user-friendly apps for scheduling, availability updates, and time-off requests — especially in deskless or shift-based environments.
- Global Compliance Tools – With multinational workforces and increasingly strict labor laws, companies are demanding WFM platforms that ensure compliance with local, national, and international regulations.
The Workforce Has Changed — Technology Is Catching Up
The traditional 9-to-5 workforce model no longer reflects the realities of today’s labor market. A surge in remote work, gig and contingent labor, and employee demands for flexibility have rendered one-size-fits-all scheduling tools obsolete. Today’s WFM systems must be adaptive and intelligent — able to meet the moment for every type of worker.
“WFM has evolved into a critical component of workforce experience and strategy,” said, Senior Analyst at ISG. “Companies that fail to invest in modern platforms risk not only operational inefficiencies but also higher turnover and disengagement.”
Top Vendors Leading the Transformation
The ISG report evaluated dozens of leading workforce management providers based on capabilities, market presence, and innovation. Among the top-ranked vendors for 2025 are:
- UKG (Ultimate Kronos Group) – Recognized for its highly scalable, AI-enabled workforce management and human capital management (HCM) solutions, tailored for complex industries like healthcare, retail, and manufacturing.
- ADP – Praised for integrating workforce management into its broader suite of payroll and HCM tools, making it easy for organizations to manage labor cost and compliance in real time.
- Workday – Known for seamless integration between WFM, HCM, and finance — and increasingly using machine learning to automate workforce planning.
- Ceridian (Dayforce) – Lauded for real-time pay and labor optimization features, as well as employee-first design.
- SAP SuccessFactors – Offers global reach and integration into SAP ERP systems, ideal for large multinational companies.
Each of these vendors is innovating with features like shift bidding, mobile dashboards, real-time compliance checks, and employee wellness tracking — transforming how companies engage with their workforce.
Why This Matters for CHROs and HR Tech Buyers
The growing complexity of labor markets and the push for digital transformation have made WFM more important than ever. For HR leaders, workforce management is no longer just an operations issue — it’s a strategic differentiator.
Key benefits of investing in modern WFM solutions include:
- ✅ Improved Scheduling Efficiency – Reduce overstaffing, understaffing, and last-minute schedule changes.
- ✅ Better Employee Engagement – Empower workers with tools that give them autonomy over their work schedules and preferences.
- ✅ Lower Compliance Risk – Automate compliance with evolving labor laws, union agreements, and overtime rules.
- ✅ Cost Optimization – Gain real-time insights into labor costs and productivity metrics to make faster, smarter decisions.
- ✅ Data-Driven Workforce Strategy – Turn scheduling and attendance data into insights that drive hiring, retention, and training strategies.
About the ISG Report
The ISG Provider Lens™ Workforce Management – Solutions and Services 2025 is a comprehensive research report designed to help business and HR leaders understand the capabilities of today’s leading workforce management vendors. The report provides detailed profiles, strengths, and challenges of top providers, alongside market trends and buyer guidance.
For organizations seeking to modernize their workforce operations, the report serves as an essential benchmarking and decision-making tool.
