The global employee recognition system market is projected to reach $34.1 billion by 2030, according to Acumen Research and Consulting. That’s up from the $11.1 billion in 2021, and represents a CAGR of 13.4%.
With recent changes in the labor market and evolving employee expectations, recognition programs, platforms and systems are coming back into focus, Acumen said. One reason: In today’s environment, organizations must fight to engage and retain their workers.Market for Employee Recognition Technology Expected to Grow #HR #HRTech #Experience Click To Tweet
In general, employee recognition has been shown to help organizations improve their experience by increasing employee engagement. According Deloitte, recognition correlates with improving employee engagement, which in turn improves job performance. Deloitte’s study also found that employee engagement, productivity and performance are 14% higher in companies that maintain recognition programs.
Consequently, analysts say, employee recognition software can increase engagement and performance even as it lessens and simplifies HR’s workload.
Digitization and Automation
The recognition market’s predicted growth comes as a wide range of organizations continue moving toward digital solutions and automated systems as ways to cut costs and improve employee productivity.
Acumen found that the primary factor for the growth of the employee recognition system market includes current trends toward digital workforce innovation. In addition, the company identified the use of cloud-based services as an important factor in market growth. However, the research also identified hindrances to the global growth, including a lack of secure social networking platforms and proper security measures within organizations themselves, the company added.
The market for employee recognition software has been split into deployment, enterprise size, industry, geography and region, Acumen said. Most notably, the North American employee recognition software market share gathered 33% in 2021. In terms of industry, the sub-segment of retail and consumer goods was the largest, with $21 billion in revenue. Finally, the on-premises sub-segment earned revenue of $6.1 billion in 2021.