Healthcare Human Resources Software Market Size, Share, and Industry Analysis, By Type (Human Resource Management Systems (HRMS), Applicant Tracking Systems (ATS), Payroll & Accounting Software, Learning Management Systems (LMS), and Others), By Deployment Mode (Cloud-based, On-premise, and Hybrid), By Enterprise Size (Large Enterprises and Small and Medium Enterprises (SMEs)), By End-user (Hospitals & Clinics, Pharmaceutical Companies, and Others), and Regional Forecast till 2032

The global healthcare human resources software market is witnessing significant growth driven by several factors, such as the rising demand for automation in managing tasks of the healthcare companies, advancements in healthcare human resource software, and evolving workforce needs. The healthcare systems are adapting to these changes with the integration of advanced HR solutions that play a critical role in enhancing operational efficiency.

• For instance, according to an article published by Healthray in November 2024, hospitals adopting AI-driven HRMS tools reported consistent benefits, including better workforce utilization, enhanced patient care outcomes, and reduced operational costs. These benefits are expected to surge the demand for healthcare human resource software, propelling market growth.

Healthcare Human Resources Software Market Driver

Increasing Demand for Automation and Efficient Healthcare Management to Boost the Market Growth

Over the past years, there has been an increase in the demand for automation that enhances efficiency in managing employee data, payroll, and recruitment, allowing healthcare organizations to streamline operations and reduce organizational burdens. Moreover, there is a surge in demand for efficient HR solutions that ensure compliance and enhance employee engagement, which is expected to boost market growth over the coming years.

• For instance, according to an article published by Deel in September 2024, 51.0% of organizations, including those in the healthcare industry, have implemented a performance management module bundled into their existing human resource management software (HRMS), which is projected to enhance their operational efficiency contributing to the market growth over the coming years.

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According to 2022 AHA Annual Survey, there were 6,120 hospitals in the U.S., witnessing a significant decline compared to the previous year, 2021.

Healthcare Human Resources Software Market Restraint

High Initial Investment and Data Security Concerns May Hamper the Market Growth

Despite the several benefits offered by healthcare human resources software, constraining factors such as high initial investment and concerns about data privacy and security, especially for the AI-driven HRMS, may create hesitation among healthcare organizations. This may decrease the adoption of such software, hampering the market growth during the forecast period.

• For instance, as per an article published by Healthray in November 2024, AI-powered systems may require a high initial investment in software, which may deter smaller hospitals or other healthcare organizations with tight budgets to implement. Moreover, implementing this software may raise data privacy and security concerns, which is expected to limit its adoption, hampering the market growth.

Healthcare Human Resources Software Market Opportunity

Advancements in Human Resources Software May Spur Market Expansion

Innovations such as cloud computing, artificial intelligence (AI), and data analytics are reshaping the healthcare human resources software landscape. These technologies facilitate the automation of various HR functions, improve workforce analytics, and enhance employee engagement through better data management. Such a scenario is expected to inspire key players to increase their focus on innovations, leading to better outcomes in healthcare HR software propelling the market expansion in the near future.

• For instance, in December 2024, the National Healthcare Group upgraded its HR system with a cloud-powered platform that improved staff flexibility and data-driven decision-making. Such advancements contributing to its increasing implementation are projected to boost the market expansion over the coming years.

Segmentation

Key Insights

The report covers the following key insights:

• Advancements in Healthcare Human Resource Management Software
• New Product Launches, By Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships, and Product Launches)
• Overview: Healthcare HR Software
• Impact of COVID-19 on the Market

Analysis by Type

Based on type, the market is subdivided into human resource management systems (HRMS), applicant tracking systems (ATS), payroll & accounting software, learning management systems (LMS), and others.

The learning management systems (LMS) segment is expected to hold a moderate share of the global market. The segment growth can be attributed to the increasing shift of healthcare companies toward this HR software for training purposes, assessing performance, and assigning and tracking progress. This preferential shift is expected to boost the demand for LMS worldwide, contributing to the segment growth.

• For instance, according to the Training Industry Report 2023 by Training Magazine, around 96.0% of overall large and mid-size companies, including healthcare, are currently using LMS to run learning programs on a large scale. This is expected to fuel the segmental growth over the forthcoming years.

Analysis by Deployment Mode

Based on deployment mode, the market is divided into cloud-based, on-premise, and hybrid.

The patches segment is expected to hold a substantial share of the global market. The segment growth can be attributed to the increasing focus on the introduction of new capabilities and features in its cloud-based healthcare human resources software to drive efficiency in healthcare organizations. Such a scenario is anticipated to boost the segment growth.

• For instance, in April 2024, Oracle announced the introduction of new capabilities to Oracle Fusion Cloud Applications Suite, including Oracle Fusion Cloud Human Capital Management (HCM) to help healthcare organizations streamline processes, reduce costs, support increased productivity, foster employee growth, and better serve patient needs. Such benefits due to advancements in cloud-based applications are projected to boost the segment growth.

Analysis by Enterprise Size

Based on enterprise size, the market is fragmented into large enterprises and small and medium enterprises (SMEs).

The small and medium enterprises (SMEs) segment is expected to hold a substantial share of the global market during the forecast period. The segment growth can be attributed to the higher involvement of SMEs in delivering healthcare services in emerging countries, which may represent several opportunities for healthcare human resource software to be implemented in those settings.

• For instance, according to data published by SouthFirst in November 2024, SME hospitals are delivering 60.0% of healthcare services in the Indian healthcare system and account for more than 90.0% of hospital beds in the country. Such high capability of SMEs to deliver healthcare services is driving the need for the implementation of healthcare human resource software, which is projected to boost the segment growth.

Analysis by End-user

By end-user, the market is subdivided into hospitals & clinics, pharmaceutical companies, and others.

The pharmaceutical segment is projected to hold a substantial market share during the projection period. The growth is mainly attributed to the increasing number of pharmaceutical companies across the globe, which may create lucrative opportunities for the implementation of healthcare human resource software, increasing its adoption over the coming years.

• For instance, as of November 2023, China’s State Council reported that the country has over 10,000 major pharmaceutical industrial enterprises, accounting for about 4.0% of the country's total industrial output. This is anticipated to boost the demand for the utilization of healthcare human resource management software, boosting segment growth.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America accounted for the largest share of the global healthcare human resources software market in 2023. The growth is attributed to the significant presence of prominent players in key countries, focused on implementing strategic initiatives to boost the usage of healthcare human resource management software.

• For instance, in December 2024, HR for Health and Unify entered into a strategic partnership to streamline HR compliance and tech efficiency for dental practices.

Europe is the second-largest market based on the demand for healthcare human resource software. The growth is attributed to the well-established healthcare infrastructure representing several opportunities for healthcare human resource software in the region.

The Asia Pacific market is expected to grow at the highest CAGR during the forecast period. The region’s growth can be attributed to the rising number of hospitals, pharmaceutical companies, and other healthcare technology companies in the region, which may spur the demand for healthcare human resource software.

• For instance, according to data published by Healthcare Asia Magazine in February 2024, China widened its medical services to around 3,000 tertiary public hospitals, which may increase the need for healthcare human resource software in the country, driving market growth.

Key Players Covered

The global healthcare human resources software market is consolidated, with many companies offering various software.

The report includes the profiles of the following key players:

• Paycom Payroll LLC (U.S.)
• Paychex Inc. (U.S.)
• Oracle (U.S.)
• Sumtotal Systems, LLC (U.S.)
• Hireology (U.S.)
• Ezovion (India)
• ai. (U.S.)
• CheckWise Payroll LLC (U.S.)
• SAP SE (Germany)

Key Industry Developments

• In April 2024, Apploi partnered with ProPay HR, a provider of healthcare payroll and HR services for healthcare operators, to set new standards in healthcare workforce management.
• In July 2023, Premier launched PINC AI HR Payroll, a suite of human resources solutions for healthcare providers.