by The Social Employee Recognition Systems Market is estimated to be valued at US$ 13,325.25 Mn or millions in 2023 and is expected to exhibit a CAGR of 11.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Social employee recognition systems refer to cloud-based software platforms that allows organizations to recognize employees for their contributions both formally and informally. Recognition programs can help boost employee motivation, engagement,and retention. These systems provide tools to spot achievements, send rewards, publish kudos, and share successes across the organization. Recognition occurs online,through social networks,and often comes with virtual badges and points.
Market Dynamics:
One of the key drivers for growth of social employee recognition systems market includes growing need to improve employee engagement and retention. Recognition helps employees feel valued which positively impacts retention. Around 69% of employees would stay longer at a company that recognize their work. Second driver, shift towards virtual workforce post pandemic has increased demand for online and social recognition software. With remote and hybrid work becoming common, organizations are increasingly adopting virtual solutions to recognize offsite employees.
Segment Analysis
The global social employee recognition systems market is dominated by the cloud-based sub-segment. The cloud-based social employee recognition systems offer various advantages like scalability, easy deployment, low maintenance, and analytics. Organizations are adopting cloud-based solutions as it reduces the infrastructure cost and provides efficient management of employee recognition programs. The on-premises social employee recognition system sub-segment is expected to lose market share to the cloud-based segment over the forecast period.
PEST Analysis
Political: Favorable government regulations around employee engagement and welfare in various countries are boosting the adoption of social employee recognition systems by organizations.
Economic: Increasing labor costs and need to improve employee retention are encouraging companies to implement social recognition programs to boost employee morale and productivity.
Social: Younger workforce is more inclined towards social interaction and recognition at workplace which is spurring demand for social employee recognition platforms.
Technological: Advancements in artificial intelligence, analytics, and mobile technologies are enabling solution providers to develop more intuitive and engaging social recognition systems.
Key Takeaways
The global Social Employee Recognition Systems Market Share is expected to witness high growth, exhibiting CAGR of 11.9% over the forecast period, due to increasing employee attrition rates globally. Effective recognition programs help organizations in retaining top talents and boosting employee engagement levels.
Regional analysis: North America dominated the global market in 2023 and is expected to maintain its leading position during the forecast period. Favorable economic environment and early adoption of emerging technologies by organizations in the US and Canada are driving the growth of social employee recognition systems in North America.
Key players: Key players operating in the social employee recognition systems market are GloboForce Ltd, BI Worldwide, SalesForce.Com, Jive Software, Inc., Aurea, Reffind Ltd, Recognize Services, Inc., Kudos, Inc., Vmware, Inc., Achievers Solutions Inc., and Madison. These players are focusing on various organic and inorganic growth strategies like new product launches, mergers & acquisitions, and partnerships to increase their market share.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
