Funding for Frontline Technology Solutions Remains Strong

Hotel Check In

Frontline technology solutions providers anticipate significant growth over the next year, with 69% projecting more than 31% growth in 2024, according to a study from RedThread Research. In addition, 46% of all vendors have received some kind of investment since June 2022. That’s during a time when venture capital investment declined for HR tech overall to less than $3.3 billion over the last four quarters.

“Unlike other HR technologies, which enable a set of behaviors — like learning or performance management — frontline tech enables a specific group of people and their needs,” said RedThread Senior Analyst Heather Gilmartin Adams. “Providers are highly focused on creating technology that is specifically designed to empower frontline workers.”

Frontline Technology Solutions

The study found that vendors are focusing on three core areas when it comes to supporting frontline workers: enabling performance, fostering learning and growth,and promoting engagement and inclusion.

The company defines those areas:

  • Performance: Technologies including performance support, scheduling, task management, performance management, and pay & benefits.
  • Learning & Growth: Technologies that enable frontline workers to plan and develop the skills needed to succeed in their current roles, to prepare for new roles and to advance in their careers.
  • Engagement & Inclusion: Tools that, for example, facilitate communication and collaboration, employee listening and feedback, and employee recognition.

While a majority of software solutions supported two of the above categories, very few products spanned all three and no one capability was offered by all providers.

“There are really no ‘table stakes’ capabilities that are being offered by everyone,” said Dani Johnson, RedThread’s co-founder and principal analyst. “In fact, out of the 15 capabilities we identified in the category, no single solution checked all the boxes. Only one capability (learning content consumption) was even offered by more than half of the providers.”

RedThread recommends that companies carefully consider their goals before choosing a frontline tech solution, and watch new developments in this niche closely.

Image: iStock

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