February 22, 2024

Rise In Need For Improved Employee Engagement To Boost Growth Of The Social Employee Recognition Systems Market

The Global Social Employee Recognition Systems Market is estimated to be valued at US$ 13325.25 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Social employee recognition systems are software solutions that help organizations recognize and appreciate their employees through social connections within the organization. These solutions automate the process of acknowledging employee achievements and contributions using social media platforms. They enable employees to recognize and appreciate their colleagues publicly via social channels like instant messaging, emails, and social profiles. This improves employee engagement levels and boosts productivity in organizations. Social recognition programs foster a culture of positivity and collaboration in workplaces. They also help attract and retain top talent. With remote and hybrid work models gaining popularity post-pandemic, social recognition tools play a key role in keeping employees engaged and connected irrespective of their locations.

Market key trends:
One of the key trends in the social employee recognition systems market is the increasing integration of recognition programs with other HR technologies. Vendors are offering advanced APIs and software development kits to integrate recognition solutions with platforms like workforce management systems, learning management systems, and enterprise resource planning systems. This allows automatic recognition of employee achievements pulled from other HR systems. Another trend is the rising popularity of mobile-optimized solutions. Organizations are deploying recognition apps to enable on-the-go appreciations and stay connected with remote employees. Gamification elements and analytics features are also being added to recognition programs to improve user experience and measure program effectiveness. Peer-to-peer and community recognition models are also gaining traction as they foster greater collaboration.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants in the social employee recognition systems market is moderate. Existing players have stronghold over the market, however new players can enter the market with differentiated technology and service offerings.

Bargaining power of buyers: The bargaining power of buyers is high in this market. Buyers can switch between various vendors basis features, pricing and other benefits. This forces vendors to offer customized solutions at competitive prices.

Bargaining power of suppliers: A few large vendors dominate the supply market. However, the bargaining power of suppliers is moderate as there are several software solution providers.

Threat of new substitutes: The threat of substitutes is moderate. While companies are experimenting with various internal and external recognition platforms, social recognition systems offer effective centralized solutions.

Competitive rivalry: The competitive rivalry is high given the presence of numerous established as well as emerging vendors offering differentiated solutions. Companies compete on the basis of product offerings, pricing, brand value and customer relationships.

Key Takeaways:

The Global Social Employee Recognition Systems Market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing need for streamlining internal communications and boosting employee engagement across organizations.

North America holds the largest share of the social employee recognition systems market owing to early adoption of advanced HR technologies across various industries in the region. Asia Pacific is anticipated to grow at the fastest pace during the forecast period, majorly contributed by expansion initiatives of global vendors and rising awareness among SMEs regarding benefits of cloud-based recognition programs.

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.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it