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Employee Engagement Software Market Size to Grow at a CAGR of 10.9% During the Forecast Period 2021-2026

(, September 29, 2021 ) The Market for Employee Engagement Software is forecast to grow at a CAGR of 10.9% from 2021 to 2026 to reach $6.1 billion in 2026. These solutions are majorly employed to increase employee job satisfaction and retain talented workers by soliciting internal communications to improve benefits. The growing digitalization and engagement/monitoring solution deployment is driving the rising penetration of these solutions, especially in SMEs which is set to be the key driving factor for the market. The numerous benefits and advancements associated with cloud technology, such as improved accuracy and performance, improved manageability and less maintenance, efficient and cost-effective remote Employee Engagement for end-users is driving the adoption of cloud-based real time monitoring software solutions during the forecast period.

Employee Engagement Software Market Segment Analysis- By Product Type

Cloud based solutions are analysed to grow at highest rate of 15.1% during the forecast period through 2026 owing to the rising adoption of cloud-based solutions across the enterprise applications especially in IT and Telecom as well as BFSI markets. With the growing demand for the cloud based solutions, the number of launches have risen which is set to boost the market growth rate. Qandle – an HRMS startup, has launched a new AI HR chat-bot called ‘Qanbot’ that helps automate daily HR tasks of employees. The idea behind the solution is to automate and address the day-to-day general queries of employees on behalf of the HR department by soliciting internal communications.

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Employee Engagement Software Market Segment Analysis- By End User Vertical

Based on the application, the market is segmented into BFSI, Government, IT &Telecom, Manufacturing, Hospitality, Transportation and Logistics, Retail, and Others. The IT& Telecom is analysed to grow at highest rate of 15.0% during the forecast period 2021-2026 majorly attributed to the Work From Home scenario caused due to COVID-19. The significant rise of Work from home requirements have led to organizations increasing focus on adoption of employee productivity improvement solutions that cater to unique personalities. In BFSI and government sectors, the implementation of real time Employee Engagement is highly required as vital information is handled in these sectors and misuse by employees may lead to severe losses. However, the security protocols are stringent in the implementation of software in these sectors with significant approvals and security features needed for deployment. As the manufacturing sector is facing severe challenges amid coronavirus, the gradual relaxation of the global lockdowns will lead to increased market growth, the remote Employee Engagement is highly required in the sector, to keep up with COVID-19 protocols and ensure employee compliance in soliciting internal communications.

Employee Engagement Software Market Segment Analysis- By Geography

North America is the dominant region in 2020 with a market share of 34.1% owing to the demand for the advanced Employee Engagement solutions in the region especially in retail and hospitality sectors. This region is followed by Europe and APAC in terms of market share. APAC is analysed to grow at highest rate during the forecast period 2021-2026 majorly attributed to the growing adoption of the digitalization. With the COVID-19 impact, the Work From Home scenarios have significantly risen that direly need the Employee Engagement software thereby boosting the market in worst hit countries such as US, India, Brazil and so on. This adoption is set to continue to post the shift back to office culture as well, especially in Large Enterprises, and thus Employee Engagement solutions will have long term adoption in the post COvid-19 world. All these factors are significantly contributing to the market growth rate.

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Employee Engagement Software Market Drivers

COVID-19 impacting the adoption of Work From Home scenario:

COVID-19 has severely impacted almost every sector causing a dip in investment in the companies. However the wide scale implementation of Work From Home policies at a global level is analysed to be the major factor contributing to the adoption of remote Employee Engagement software market growth due to the dire need to monitor and track employee productivity and ensure internal communication soliciting policy compliance in enterprises. With the growing demand for Employee Engagement software, companies such as Epazz Inc., announced the addition of Employee real time Monitoring tools to their enterprise software solutions. The integration of comprehensive enterprise software solutions with Employee Engagement software will enhance the scope of applications for the Employee Engagement solutions thereby driving the market.

Enhancing workforce productivity

Employee Engagement software is majorly used in the workspace to enhance the productivity by monitoring employees and allowing better management of workforce. The integration of remote Employee Engagement solutions along with the identity and access management solutions is further contributing to the market growth rate. The integration of employee real time monitoring with employee productivity assessment and employee reward and compensation tools will create new markets for the solution thereby driving its adoption.

Employee Engagement Software Market Challenges

Employee privacy

The concerns regarding the employee privacy are acting as the major restraining factors for the market. As the Employee Engagement software deals with the acquisition and monitoring of complete data of an employee the privacy of an employee is at stake. The regulations in place to improve employee privacy also limit their adoption. For instance, The Electronic Communications Privacy Act (ECPA) allows business owners to monitor all employee verbal and written communication as long as the company can present a legitimate business reason for doing so. It also allows for additional monitoring if the employee gives consent. These sort of limitations will hinder market growth.

Employee Engagement Software Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Employee Engagement Software market. Employee Engagement Software driver market is expected to be dominated by major companies such as Symantec, OsMonitor, InterGuard, Sentry PC, Teramind, StaffCop, EfficientLab LLC., among others.

Acquisitions/Technology Launches/Partnerships

In April 2021, Qandle – an HRMS startup, has launched a new AI HR chat-bot called ‘Qanbot’ that helps automate daily HR tasks of employees. The idea behind the solution is to automate and address the day-to-day general queries of employees on behalf of the HR department.

In January 2021, Grind Analytics, a business intelligence fintech, launched an employee productivity scorecard, MODM or Master Operations Decision Medium. The software uses artificial intelligence and company-provided benchmarks to evaluate worker performance

Key Takeaways

SMEs hold the highest share in the market owing to the high adoption in the retail and logistics sectors.

North America is dominating the market in 2020, owing to the high adoption of the advanced technologies in the companies.

The rapid increase in the number of organizations is set to drive the market for Employee Engagement Software market during the forecast period.

Related Reports:

A. Career Management Software Market

B. Workforce Management Market

For more Information and Communications Technology Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to to discuss more about our consulting services.


Venkat Reddy

(+1) 970-236-3677

Source: EmailWire.Com

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