The social employee recognition systems market comprises diverse products such as gift cards, merchandise, travel rewards, cash rewards, spot rewards, and gift certificates. Recognition systems helps businesses recognize employees for quality work, exceptional performance and motivate employees through social and non-monetary rewards. These systems promote employee engagement, growth and retention. Social recognition allows employees to receive acknowledgment from managers and peers through social media networks within the organization.
The global social employee recognition systems market is estimated to be valued at US$ 6 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the social employee recognition systems market is the shift towards digital and cloud-based platforms. With remote and hybrid work models becoming commonplace due to flexibility needs of employees as well as cost benefits for businesses, most employers are adopting cloud-based employee recognition solutions. Cloud platforms allow organizations to recognize employees regardless of their location and facilitate collaboration between teams. The other major trend is the integration of recognition programs with employee performance management and rewards & incentives programs. This integration provides a holistic view of employee contribution and performance. It also helps management analyze recognition patterns and allocate rewards in a more meaningful way. Personalized and immediate feedback through social recognition further aid in employee development and retention.
Threat of new entrants: The Social Employee Recognition Systems market already has many major established players dominating the market. However, the low set up costs allows new players to enter the market easily.
Bargaining power of buyers: Buyers have moderate bargaining power in this market as there are many available vendors offering similar recognition systems.
Bargaining power of suppliers: A few large suppliers exist who have considerable bargaining power over pricing and quantities supplied to vendors in this market.
Threat of new substitutes: Potential substitutes include traditional employee reward and recognition programs. However, social recognition systems offer an inexpensive digital alternative.
Competitive rivalry: The market is highly competitive with major vendors like Achievers, Globoforce, SalesForce etc constantly competing on product innovation and capabilities.
The Global Social Employee Recognition Systems Market Size is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis: North America currently dominates the Social Employee Recognition Systems market due to presence of major players and early adoption of advanced HR technologies. The Asia Pacific region is expected to grow at the fastest pace owing to rising employee engagement initiatives by enterprises in countries like China, India to boost productivity.
Key players: Key players operating in the Social Employee Recognition Systems market are Achievers, Globoforce, SalesForce, REFFIND, Ultimate, Kudos, Madriz HR Technologies, Terryberry, Recognize Services, and Motivosity. Globoforce and Achievers currently have the largest market shares due to their comprehensive capabilities and global presence
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it