Social employee recognition systems are the combination of software solutions that aid organizations to provide their employees' tools and techniques associated with social networking tools that facilitate them to acknowledge each other efforts and celebrate success. Social employee recognition platforms are the software system that allows users to recognize efforts of another person/co-worker and appraise them with the help of social networking websites. This helps managers to appreciate employee contribution, foster knowledge sharing, and social learning, reinforce behaviors, showcase achievements of team, identify subject matter experts, and extend corporate knowledge.
The global social employee recognition systems market is estimated to be valued at US$ 10,641.8 million in 2021 and is expected to exhibit a CAGR of 11.9% over the forecast period (2021-2028).
Europe held dominant position in the global social employee recognition systems market in 2020, accounting for 31.9% share in terms of volume, followed by North America and Asia Pacific, respectively.
Figure 1. Global Social Employee Recognition Systems Market Value (US$ Mn), by Region, 2020
Market Dynamics- Drivers
Increasing utilization of social media platforms among enterprises is expected to drive growth of the global social employee recognition systems market during the forecast period. Various social media platforms have witnessed massive adoption in organizations and business enterprises in the recent past. Social media platforms including LinkedIn and Twitter are being used by companies, in order to communicate with internal teams. Furthermore, they are also utilized to distinguish employee efforts and engage them in promotional and marketing activities. Companies are advertising new products and regarding product discounts, and plans for the new future growth of employees, in order to boost sales and increase brand loyalty online.
Growing participation of senior management is expected to propel the global social employee recognition systems market growth over the forecast period. Constant increase in involvement of senior management in employee recognition has increased the adoption of social employee recognition systems in organizations. Some companies have seen improved and stronger growth owing to participation of upper management in similar activities. These social employee recognition solutions can be app-based, which can allow senior management can actively participate from a remote location and recognize & reward the efforts made by employees. Furthermore, social employee recognition solutions can help employees to communicate with their respective teams along with seniors, thereby increasing the productivity of employees.
Increasing acceptance of BOYD culture can present major growth opportunities. Many corporate companies have started accepting the culture of bringing your own device (BOYD) although it is at nascent stage in smaller companies. This trend is creating major opportunities for market players to enhance the market presence. Organizations in various sectors are adopting BOYD culture, in order to reduce costs to the company in terms of personal computers, devices, and laptops, etc. BOYD approach allows employees to connect to coworkers and clients and help these employees to appraise co-workers and teams. This is done by providing feedbacks and increase their loyalty towards the organization.
High growth of social medial platforms can provide major business opportunities. According to Coherent Market Insights’ analysis, around 65% of internet users utilize social media platforms and online services on a daily basis. Many companies are deploying social networking tools for training of employees. This does not increase any cost to the company and enables employees to communicate with each other and recognize efforts made. Moreover, companies use social media platforms to drive interaction among employees through online communities to invite ideas for solving various complex problems and challenges associated with their businesses and then reward their contributors.
|Base Year:||2020||Market Size in 2021:||US$ 10,641.8 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||11.9%||2028 Value Projection:||US$ 23,407.7 Mn|
GloboForce Ltd, BI Worldwide, SalesForce.Com, Jive Software, Inc., Aurea, Reffind Ltd, Recognize Services, Inc., Kudos, Inc., Vmware, Inc., Achievers Solutions Inc., and Madison
|Restraints & Challenges:||
Small and medium enterprises are adopting this technology at a slow rate due to limited budget and lack of high security options. Small companies require solutions that fit into their budgets, along with offering an adequate level of security. Hence, companies are shifting towards adoption of cloud-based social employee engagement technology, which can provide similar performance and security as an on premise solution, without need for further expansion of IT-related infrastructure.
Large enterprises account for larger share of the global market revenue as compared to smaller players due to more capital to invest and stronger global presence. Large enterprises adopt these enterprise social networks and online collaboration solutions in order to connect with employees working globally and to promote their products and analyze user behavior related to their respective products. With growing adoption of software-as-a-service offerings, small and medium enterprises are implementing these social employee engagement programs as it becomes less costly due to availability on cloud without increasing IT infrastructure.
Figure 2. Global Social Employee Recognition Systems Market Share, By Industry, 2020
Key Takeaways of the Graph:
Market Dynamics- Restraints
Low availability of secured social networking platforms is expected to restrain growth of the global social recognition employee systems market during the forecast period. Lack of effective security measures is a major hindering factor for the adoption of social employee recognition systems. Integrating social networking websites with business applications makes the business susceptible to cyber-attacks, unauthorized access, and illegal access to information. Integration of Customer Relationship Management (CRM) or Enterprise Resource Management (ERP) with social websites allows clients, vendors, and other users to access the content of a company, and as a result, preference for social employee recognition solutions among companies is relatively low currently.
Lack of overall employee participation is expected to hamper the global social employee recognition systems market growth over the forecast period. In various organizations, many employees have the perception that using such social media platform can put their private information into risk. Although many organizations have integrated with these technologies, they do not provide adequate training and introductory learning to their employees. As a result of this, employees are visiting their social media platforms although they are unable to offer many advantages such as real-time collaboration, peer-to-peer communication with team, etc.
Major companies involved in the global 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.
Key players in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in June 2017, Aurea Software Inc., a software emperies, acquired Jive Software for US$ 462 million.
Social employee recognition systems provide tangible benefits for organizations. A company that does not offer employees any form of recognition may suffer from low morale, employee turnover, and poor relationship with its employees. Thus, these social employee recognition systems are designed to reward an employee's performance and contribute positively to the growth of the organization. This helps to build loyalty among employees and enhance their commitment, engagement, and productivity levels. This employee recognition and reward programs are typically incorporated into the monthly performance appraisal report to keep the metrics on the performance of the company up-to-date.
Technological innovations delivered via software-as-a-service (SaaS) applications are expected to boost the global social employee recognition systems market growth over the forecast period. SaaS applications have become an important part of software services in many industries due to technological advancements. SaaS provides numerous advantages including cost-effectiveness, flexible payment methods, enhance scalability, and improved data storage with the cloud. Hence, such factors are expected to boost market growth.
Moreover, the integration of advanced technologies in IT and telecom is expected to accelerate growth of the global social employee recognition systems market in the near future.
Key features of the study:
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