Employee Engagement Software Market - Forecast(2023 - 2028)
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.
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).
- 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
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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.
- 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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