Employee Engagement Software Market - Forecast(2023 - 2028)

Report Code: ITR 0279 Report Format: PDF + Excel

Employee Engagement Software Market Overview

Employee Engagement Software Market Size is forecast to reach $870 Million by 2027, at a CAGR of 12% during 2022-2027. Employee engagement software assists businesses in increasing employee engagement while also improving the employee and organization experience. Employee engagement platforms are frequently chosen by HR departments and implemented with HR's guidance by managers, IT, the C-suite, and other members of the organization. Employee engagement is based on an organization's and its members' trust, integrity, two-way commitment, and communication. It is a strategy that increases the likelihood of business success by improving organizational and inpidual performance, productivity, and well-being. Every company nowadays is a data-driven company, especially when it comes to employee engagement. Dynamic dashboards in engagement tools quickly highlight departments or regions that are doing great work and pinpoint areas of the business that could use some assistance. When launching any employee initiative, leaders can track the difference in engagement and pivot as needed. Increased digitization of everyday work in both private and public companies will drive industry growth the forecast period 2022-2027.

Report Coverage

The report: “Employee Engagement Software Market Report– Forecast (2022-2027)”, by Industry ARC covers an in-depth analysis of the following segments of the Employee Engagement Software Market.

By Deployment Type: Cloud, On- Premises, Hybrid.
By Enterprise Size: Large Enterprises, SMEs.
By End Users: BFSI, Government, IT & Telecommunication, Manufacturing, Retail, Hospitality, Retail, Transportation & Logistics, Others.
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle East and Africa).

Key Takeaways

  • APAC area has the highest degree of employee engagement. Nearly 40% of APAC office workers, on the other hand, agree that workplace technology aids job efficiency. According to a Salesforce study, nearly 60% of office workers in the region attribute low engagement to a lack of technology. This will drive the market.
  • According to a recent report published by PubMed, almost 50% neurologists in the country have already implemented employee engagement within their organizations to connect with their employees bit more efficiently which has made this category extremely popular within the country.
  • Large enterprises typically employ over 10,000 people from various backgrounds and nationalities. As a result, they operate in a highly structured environment that facilitates inter-departmental communication and the smooth operation of the company as a whole.  Therefore, use of employee engagement solutions are vital to their day to day functioning.

Global Employee Engagement Software Market, By Region, 2021

Global Employee Engagement Software Market

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Employee Engagement Software Market Segment Analysis - By Organization Size

The SMEs segment is growing at a significant CAGR of 11.8% in the forecast period. Employee engagement is a critical component for SMEs who have to compete with fewer employees, and to boost productivity and profitability. According to a study, SME's account for about 80% of private sector enterprises and 60% of private sector employments in numerous developing and developed countries around the world. Because of the large workforce, retail, logistics and other industries dominating the SMEs, have made significant investments in employee engagement solutions in recent years. The Annual Employee Engagement & Retention Report shows that 90% of the respondents expect regular feedback from their employers. The report also states that only around 20% of then employees are properly engaged with almost one-thirds showing very less commitment. This has pushed up the need for employee engagement solutions among SMEs.

Employee Engagement Software Market Segment Analysis - By End Users

IT & Telecommunication sector is expected to witness a highest CAGR of 15.3% the forecast period, owing to various factors such as increase in sales of electric vehicles due to the introduction of new technologies such as 5G. A study by Progressive Policy Institute reveals that more than 4 million new jobs will be created in the telecom industry by 2034. According to a Harvard poll, IT and telecommunications companies are adopting performance connection solutions to engage with employees, establish goals, and analyze performance in order to stay updated with the massive workforce, thereby pushing the demand for employee engagement software. A survey by the International Data Corporation, involving around 500 IT and Telecom companies, shows that more than 40% of the participants indicated an increased demand for employee engagement software due to its several advantages related to the management and transparency of workforce, subsequently driving the demand for employee engagement software in the forecast period 2022-2027.

Employee Engagement Software Market Segment Analysis - By Geography

Employee Engagement Software market in Asia-Pacific region held significant market share of 37% in 2020. According to an ILO research, there is a significant disparity in employment rates among youths in the region. They also have the region's highest employee turnover. Covid 19 fueled this even further. As a result, businesses are investing more in digital transformation solutions in order to better engage millennials. More than 50% of the employers in the region claimed to have implemented remote engagement applications and another 30% plan on implementing them soon. According to Bloomberg, the digital economy in Southeast Asia is expected to exceed $1 trillion by 2030, thanks to investments from multiple governments in the region as well as investments from companies like Alibaba, Microsoft, and Amazon. More than 60% of SME's in some countries, such as Singapore, now use digital solutions for human resource and employee engagement.

Employee Engagement Software Market Drivers

Implementation of Career Development and Executive Coaching:

Learning and development is one of the areas in which businesses can invest to increase employee engagement. Training programs can be a useful communication tool, allowing employees to improve with each passing day in the workplace. According to the 2021 Talent Index, which polled 5,000 workers in the United States and the United Kingdom, 83 percent of employees believe their firm should assist with professional advancement. Online coaching is a proven and high-value investment for HR and leadership teams. On practically every area, vendors such as Harvard Publishing, DDI, Ken Blanchard, and LinkedIn Learning offer online self-study. Hone and Modal, two fast-growing startups, offer live programs and courses in unique online experiences. These are the few examples that could predict the growth of employee engagement software market.

Employee Engagement Through Corporate Wellness

Corporate wellness programs are becoming increasingly popular, particularly in the aftermath of COVID-19. Employers have recognized the importance of employee wellness and its impact on workplace culture and business growth since the pandemic. As a result, implementing these corporate wellness programs has become a requirement. The current remote working situation has prepared the way for the most spectacular uses of corporate technology to assure employee engagement and contact. According to a report by Sensor Tower, mobile health apps have topped one billion worldwide installs by the end of 2021. According to the survey, global installs of top mobile wellness apps has increased by 42% in 2021, compared to around 730 million installs in 2019, before to the outbreak. Corporate Wellness Software enables businesses to implement initiatives that encourage employees to live healthy lifestyles. Health education, confidential health screenings, staff involvement, progress tracking, incentives and awards are just a few of the alternatives available. A major reason driving the growth of the market is the increased demand to improve and manage employee health and well-being. Hence these factors are analysed to drive the market growth in the forecast period 2022-2027.

Employee Engagement Software Market Challenges

Impact of Great Resignation:

Businesses will be more prepared to meet the problems of the post-pandemic workplace in 2022. The Great Resignation is set to continue this year, as new economic data continues to warn about a competitive labour market. Employers are being pushed to think outside the box when it comes to retaining great employees while also attracting and hiring new talent. According to the U.S. Bureau of Labor Statistics, the year 2021 was dubbed "The Great Resignation," with approximately 47.4 million people voluntarily quitting their jobs. Americans are quitting their jobs at an all-time high, and the trend shows no signs of abating. According to BLS data, 3.4 million people quit their jobs in December 2020, compared to 4.3 million in December 2021. Retail trade, professional and business services, education and health services, leisure and hospitality had the highest quit rates in December 2021.

Employee Engagement Software Market Landscape

Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Employee Engagement Software market. Employee Engagement Software market top 10 companies include Qualtrics, Bamboo HR LLC, BITRIX, Salesforce, Officevibe, CultureAMP, KAZOO, LATTICE, 15Five, WorkVivo., among others.

Recent Developments

  • In 2021 Bamboo HR entered into a strategic partnership with Hireflix, Leapsome, Spark Hire and Pyn, to provide its market place customers with additional integrations in the areas of Video Interview technology, Performance and Engagement Technology, and Communications Technology
  • In 2021, Bitrix24 announced the launch of their spring update, which brings numerous innovative features into the company’s CRM platform. The update includes new tools like online document co-editing capabilities, smart processes, upgraded video call functionality, and other team productivity, e-commerce, and business automation features. Such features significantly increase employee engagement and productivity, especially while remote working during the COVID-19 pandemic.
  • In 2021, Qualtrics announced a collaboration with DXC Technology which enables DXC's Modern Workplace service offering to include include Qualtrics' EmployeeXM experience management platform. DXC will use the platform to capture data on employee sentiment to drive higher engagement, collaboration, and productivity.

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1. Employee Engagement Software Market Overview
    1.1 Definitions and Scope
2. Employee Engagement Software Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Product Type 
    2.3 Key trends segmented by Geography
3. Employee Engagement Software Market– Market Landscape 
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Employee Engagement Software Market– Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. Employee Engagement Software Market– Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Employee Engagement Software Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes 
7. Employee Engagement Software Market– By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
    7.4 Suppliers and Distributors
8. Employee Engagement Software Market– By Deployment Type (Market Size -$Million/Billion)
    8.1 Cloud
    8.2 On-Premises
    8.3 Hybrid
9. Employee Engagement Software Market– By Enterprise Size (Market Size -$Million/Billion)
    9.1 Large Enterprises
    9.2 SMEs
10. Employee Engagement Software Market– By End Users (Market Size -$Million/Billion)
    10.1 BFSI
    10.2 Government
    10.3 IT & Telecommunications
    10.4 Manufacturing
    10.5 Retail
    10.6 Hospitality
    10.7 Transportation & Logistics
    10.8 Others
11. Employee Engagement Software Market- By Geography (Market Size -$Million/Billion)
    11.1 North America
        11.1.1 U.S
        11.1.2 Canada
        11.1.3 Mexico
    11.2 South America
        11.2.1 Brazil
        11.2.2 Argentina
        11.2.3 Chile
        11.2.4 Colombia
        11.2.5 Others
    11.3 Europe
        11.3.1 Germany
        11.3.2 France
        11.3.3 UK
        11.3.4 Italy
        11.3.5 Spain
        11.3.6 Russia
        11.3.7 Netherlands
        11.3.8 Others
    11.4 APAC
        11.4.1 China
        11.4.2 Japan
        11.4.3 South Korea
        11.4.4 India
        11.4.5 Australia
        11.4.6 Indonesia
        11.4.7 Malaysia
        11.4.8 Others
    11.5 RoW
        11.5.1 Middle East
        11.5.2 Africa
12. Employee Engagement Software Market- Market Entropy
    12.1 New product launches
    12.2 M&A's, collaborations, JVs and partnerships
13. Employee Engagement Software Market– Industry Competition Landscape (Premium)
    13.1 Market Share Global
    13.2 Market Share By Region
    13.3 Market Share By Authentication Type
14. Employee Engagement Software Market– Key Company List by Country Premium (Premium)
15. Employee Engagement Software Market- Company Analysis
    15.1 Qualtrics
    15.2 Bamboo HR LLC
    15.3 BITRIX
    15.4 Salesforce
    15.5 Officevibe
    15.6 CultureAMP
    15.7 KAZOO
    15.8 LATTICE
    15.9 15Five
    15.10 WorkVivo
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