Report Overview

Employee engagement & feedback software is a software solution that demonstrates how passionate employees are about their work, their level of dedication toward the organization, and how willing they are to bring discretionary effort into their job.

Global Employee Engagement & Feedback Software Market- Industry Trends & Forecast Report 2027

The global employee engagement & feedback software market has reached USD 878.3 million in 2020, and it is anticipated to reach USD 1,908.3million by 2027, at a CAGR of 11.8%,during the forecast period(2021-2027). The rise of the contract workforce, expanding outsourcing activities, growing virtual workplace, and challenges faced on the employee engagement front, are a few crucial factors driving the employee engagement & feedback software market. The software is extensively used by the HR Department to improve operational efficiency and reduce human error.

Employee engagement & feedback software is useful in getting feedback from employees to recognize their accomplishments and perform promotional activities. The software is a must-have as it helps identify the gap between the expected and actual performance of employees. It also recommends suitable employee engagement activities. Thus, it leads to greater employee satisfaction, which in turn enhances the work culture of a company besides helping the company retain employees for a longer time. Organizations, irrespective of their size, use this software to improve the engagement of employees and enhance overall organizational and operational efficiency.

Source: BlueWeave Consulting

Global Employee Engagement & Feedback Software Overview

Employee engagement&feedback software is a software solution that demonstrates how passionate employees are about their work, their level of dedication toward the organization, and how willing they are to bring discretionary effort into their job. Employee engagement and feedback include subjective and objective parameters to understand and define the relationship between an organization and its employees. It follows a workshop approach for improving employees’ emotions and their emotional attachment to the company, their colleagues, job duties, their position within the company, as well as the company culture. Employee engagement & feedback software is a set of application programs that organizations use for improving employee workplace satisfaction and retaining talented workers. For example, the Human Resource (HR) department of many organizations deploy the most advanced employee meeting software, which is available on a subscription basis as software and service, for better efficiency.

Global Employee Engagement & Feedback Software Forecast and Trend

Growth Drivers

Increase in the number of organizations and implementation of advanced technologies

Employee engagement is becoming a vital part of organizations. As organizations grow, there’s a greater need to improve the output of the organization and employees, as well as retain the best employees through employee recognition programs, assessment transparency. These factors help optimize the efficiency of an organization. Employee involvement is an area where companies need progressive technologies to track every minute of employee activity so that they can deliver better solutions. Such technologies also keep employees engaged in different tasks and activities besides enhancing the work atmosphere of the organization.

During the forecast period, the growth of the market would be likely to be driven by the explosion of learning analytics, the rapidly growing IoT landscape, and advanced MLcapabilities. Moreover, AI is also poised to trigger a major shift in employee involvement. In the coming years, HR operations are likely to be governed by AI, the internet of things (IoT), and ML technologies instead of traditional employee engagement &feedback software tools that companies were using earlier. These factors will further push the demand for employee engagement& feedback software.

Increasing adoption of smartphones driving the market growth

Nowadays, smartphones are widely used in workplaces around the world. Smartphones have increasingly become more integrated into employees’ day-to-day work lives over the last decade. The growing adoption of smartphones has driven organizations to opt for employee engagement apps, which are easily accessible via smartphones. Desktop-based systems involve manual maintenance, such as installing updates and setting service time alarms, whereas task delivery through handheld devices takes less time and improves employee competence. This suitability is expected to boost market growth during the forecast period.

Restrains

The threat of increasing turnover of the employee

Employee turnover has a negative impact on long-term workers. Moreover, since no one knows how secure their job is in a particular organization, a culture of fear may grow among the employees as a result of high employee turnover. Employees spend a lot of time worrying about their jobs. As a result, they are less engaged and more concerned about their job security in that particular organization. Additionally, a communication gap is likely to stifle market growth.

Impact of COVID-19 in industry

In terms of market and operational parameters, the pandemic has had a serious impact on industry players. As soon as the World Health Organization (WHO) declared the novel coronavirus (COVID-19) as a pandemic, countries across the globe were compelled to enforce nationwide lockdown to prevent the spread of the virus. This has severely impacted manufacturing besides disrupting the supply chains. Production and operation have slowed down owing to the spreading of coronavirus. Nevertheless, COVID-19 has propelled the demand for employee engagement& feedback software.

The impact of COVID-19 has been felt in every aspect of the economy. The professional and private lives of employees have been affected tremendously as more and more employees are opting for work from home for maintaining social distancing norms. Employee engagement has been adversely affected due to the pandemic-infused lockdown. Therefore, to combat employee disengagement, employee engagement & feedback software solutions are currently used widely. The software not only assesses employee engagement levels but also carries out different activities for enhancing the same. Though employees have been separated physically, they are connected virtually through this software. Thus the employee engagement & feedback software is opening up significant opportunities for the employee engagement software market.

Global Employee Engagement & Feedback Software Market: By Deployment

Based on the segmentation, the global employee engagement & feedback software market is segmented into on-premise and on-cloud. Research conducted in 2019 revealed that up to 60% of business owners would prefer the on-cloud for hosting data by 2022. Employees’ preference for working from home and the expansion of operations to more remote locations are paving the way for the cloud-based software market to develop. This growth can be attributed to several benefits that on-cloud deployment provides to an organization, such as improved productivity, cost-savings, improved communication, process efficiency, and much more. The aforementioned are the key factors driving the growth of on-cloud in the deployment segment.

Source: BlueWeave Consulting

Global Employee Engagement & Feedback Software Market: By Organization Size

Based on organization size, the global employee engagement& feedback software market is segmented into small &medium-sized enterprises and large enterprises. Large enterprises cater to the largest share in this segment. Since large organizations face a lot of challenges, they cannot be flexible and creative in employee engagement as compared to small and medium enterprises. That’s why large enterprises are increasingly embracing employee engagement & feedback software for keeping track of employees, retaining/collecting data to improve engagement, and record the efficiency of employees, thus, enabling new ways of communication. This is a key factor driving the growth of employee engagement & feedback software in large enterprises.

Global Employee Engagement & Feedback Software Market: Regional Insights

The global employee engagement & feedback software market is segmented into five regions: North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. North America accounted for the largest market share in 2020and is further expected to maintain its share during the forecast period owing to technological advancements and the increasing number of contract jobs in the region. The organizations in this region have been increasingly deploying employee engagement &feedback software for enhancing engagement and boosting the productivity of contract-based employees. The Asia-Pacific region is also anticipated to witness the highest CAGR due to the increasing traction of the software in expanding outsourcing activities across the multiple nations of the region.

Source: BlueWeave Consulting

Competitive Landscape

The leading players in the global employee engagement & feedback software market include Tap My Back, Officevibe, KaiNexus, Teamphoria, Bitrix24, Qualtrics, Synergita, Technology Advice, Quantum Workplace, Zinda, Vocoli, Motivosity, and Transcend, 15 Five, Culture Amp, Tiny Pulse, Weekdone, Impraise, Achievers, Reflektive, BAM Creative, Hyphen, Saba Software, Teambit, SurveySparrow, and others prominent players. The employee engagement & feedback market is price-sensitive, so players compete intensively in terms of delivering cost-effective and productive services. In order to improve their capability, the product portfolio, and provide competitive differentiation, companies are increasingly engaging in mergers &acquisitions, and partnerships. Furthermore, companies are focused on ensuring consumer acceptance of these software services in their organization.

Recent Developments

·         In March 2021, Bitrix24, the unified workspace, updated its feed to make working with feed posts even more convenient and enjoyable. The upgraded feed features collapsing pinned post. All the pinned posts, in case there are more than two posts, now collapse into a single block, thus, making the software more user-friendly and engaging.

·         In May 2020, Quantum Workplace, a leading provider of comprehensive employee engagement software, declared that its solutions would be available on ADP Marketplace, a digital HR storefront that offers best-of-breed solutions that simply and securely share data within ADP platforms.

Scope of the Report

By Deployment

• On-Premise
• On Cloud

By Organization Size

• Small and Medium-Sized Enterprises
• Large Enterprise

By Offering

• Turnkey
• Customized

By Device

• Desktop
• Handheld

By Region

• North America
• Europe
• The Asia Pacific
• South America
• The Middle East & Africa