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on March 28, 2024
The latest report by IMARC Group, titled “Employee Engagement Software Market by Deployment Mode (Cloud-Based, On-premises), Enterprise Size (Large Enterprises, Small and Medium Enterprises), Function (Onboarding, Training, Collaboration and Interaction, Customer Service, Rewards and Recognitions, and Others), Industry (Retail, BFSI, Government, Healthcare, IT and Telecom, Hospitality, Manufacturing, and Others), and Region 2024-2032“, The global employee engagement software market size reached US$ 945.7 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 2,825.9 Million by 2032, exhibiting a growth rate (CAGR) of 12.93% during 2024-2032.
Factors Affecting the Growth of Employee Engagement Software Industry:
- Rapid Shift Toward Remote Work Culture:
The widespread adoption of remote work has become a significant catalyst for the growth of the employee engagement software market. With organizations transitioning to remote or hybrid work models, maintaining employee morale, motivation, and productivity has become paramount. Employee engagement software provides tools and solutions to facilitate communication, collaboration, and connection among remote teams. Features such as virtual team-building activities, recognition programs, and feedback mechanisms help organizations bridge the gap created by physical distance, fostering a sense of belonging and engagement among employees. As remote work continues to evolve, the demand for employee engagement software is expected to rise, driving innovation and expansion in the market.
- Focus on Employee Well-Being and Mental Health:
In recent years, there has been a growing emphasis on employee well-being and mental health in the workplace. Employers are recognizing the importance of supporting the holistic health and wellness of their workforce, for ethical reasons and also for improving productivity and reducing turnover. Employee engagement software plays a pivotal role in addressing these concerns by offering features designed to support mental health and well-being initiatives. These may include tools for stress management, access to resources for mental health support, and features for promoting work-life balance. By investing in employee well-being through engagement software, organizations demonstrate their commitment to creating a supportive and caring work environment, leading to increased loyalty and satisfaction among employees.
- Data-Driven Decision Making and Individual Analytics:
The rise of data-driven decision-making has transformed the way organizations manage their human resources. Employee engagement software provides valuable insights and analytics that enable HR professionals and organizational leaders to make informed decisions regarding workforce engagement and performance. By leveraging data on employee sentiment, feedback, and interaction patterns, organizations can identify trends, pinpoint areas for improvement, and tailor engagement strategies to meet the unique needs of their workforce. Individual analytics offered by engagement software empower organizations to measure the impact of their initiatives, track progress over time, and continuously optimize their approach to employee engagement. As organizations increasingly recognize the importance of data in driving business outcomes, the demand for employee engagement software with robust analytics capabilities is expected to escalate, fueling market growth.
Competitive Landscape with Key Player:
- 15five Inc.
- Bitrix24
- Culture Amp Pty Ltd.
- Lattice
- Leapsome GmbH
- Quantum Workplace
- Salesforce Inc.
- Transcend Engagement LLC
- Vantage Circle
- Workvivo Limited
- Xoxoday Emplus
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/employee-engagement-software-market/requestsample
Report Segmentation:
The report has segmented the market into the following categories:
Deployment Mode Insights:
- Cloud-Based
- On-premises
On-premises dominates the market due to the continued preference of certain industries, particularly those with stringent security and compliance requirements, for hosting their employee engagement software within their own infrastructure rather than relying on cloud-based solutions.
Enterprise Size Insights:
- Large Enterprises
- Small and Medium Enterprises
Large enterprises hold maximum number of shares due to their expansive workforce and complex organizational structures, which necessitate comprehensive employee engagement solutions to effectively manage and optimize employee productivity and satisfaction at scale.
Function Insights:
- Onboarding
- Training
- Collaboration and Interaction
- Customer Service
- Rewards and Recognitions
- Others
Onboarding represents the largest segment due to its crucial role in facilitating the seamless integration of new hires into organizations, ensuring productivity, retention, and overall employee satisfaction.
Industry Insights:
- Retail
- BFSI
- Government
- Healthcare
- IT and Telecom
- Hospitality
- Manufacturing
- Others
IT and telecom dominate the market due to the pervasive need for digital infrastructure and communication tools across all sectors, driving substantial demand for employee engagement software within these industries.
Market Breakup by Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America’s dominance in the employee engagement software market is attributed to its high adoption rate of advanced technology, strong emphasis on employee engagement initiatives, and the presence of a large number of established vendors offering a wide range of solutions.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.
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Posted in: Business