Employee Experience Technology Adoption Is Being Driven by Pandemic Recovery and Workforce Instability, According to Dash Research Worldwide Spending on Employee Experience Software and Services Will Increase from $5.9 Billion in 2021 to $14.6 Billion by 2026
Denver, Colorado
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October 10, 2022 05:15 AM Eastern Daylight Time
The massive shifts caused by the Covid-19 pandemic have been deeply felt across all industries and at every department level within business-to-consumer (B2B) and business-to-business (B2B) companies. The effect on the global workforce has been profound, with companies around the world struggling to hire and retain employees. According to a new report from Dash Research, an evolution that many say was already in progress before the pandemic, has accelerated with a balance of power starting to migrate toward employees.
Dash Research analysis indicates that these market dynamics are leading companies to invest in a broad range of technologies and solutions to not only decrease day-to-day friction in an employee journey, but also to attempt to meet the expanded desires of a changing population. The line between traditional human resources (HR) technology and employee experience (EX) technologies has blurred over the past few years and has given rise to larger companies that provide human capital management (HCM) or workforce engagement technologies to add modules more focused on engagement, community building, recognition, or performance management. These dynamics have also enabled smaller companies to gain leverage in the market with more specific offerings focused on just one part of the EX ecosystem.
Dash Research forecasts that the global market for EX platforms, applications, and services will increase from $5.9 billion in 2021 to more than $14.6 billion in 2026. The market intelligence firm anticipates that EX platforms will represent 53% of total revenue within the forecast period, followed by services (24%) and applications (23%).
“Companies are becoming more human-centered,” says senior analyst Sherril Hanson, “and HR departments are shifting focus from operations and productivity toward experience, health, and wellbeing. In many cases, the fundamental relationship between employer and employee has changed.”
Hanson adds that the key market drivers spurring the purchase of EX software and services include:
- The Great Resignation and the need for better retention strategies
- The employee experience/customer experience link
- Shifting employee wants and needs
- Move to hybrid and remote work, leading to increased need for communication and connection
- Growing need for optimal digital employee experience and great supporting technologies
However, she points out that many barriers remain for organizations when attempting to deploy EX solutions, many of which are internal and operational. Dash Research has identified four key challenges that are tempering the growth of EX:
- Outdated and challenging technology stacks
- Lack of internal ownership
- Struggles with analysis and action
- Inability to build an EX-supportive culture
Dash Research’s report, “Employee Experience”, focuses on the software platforms, applications, and services that are offered to help companies achieve excellent EX. These solutions are an important part of providing a positive employee experience. If implemented thoughtfully and with sustained commitment, the solutions can promote deeper employee engagement, less employee churn, in-house automations and efficiencies, and improved customer experience. An Executive Summary of the report is available for free download on the firm’s website.
Dash Research, the market intelligence arm of Dash Network, provides in-depth research and insights on the worldwide CX market including a comprehensive assessment of technology solutions, business issues, market drivers, and end-user dynamics across industry sectors. Dash Research’s global market coverage combines qualitative and quantitative research methodologies to provide a complete view of emerging business opportunities surrounding contact center technologies, customer data & analytics, customer data platforms, customer insights & feedback, customer relationship management, personalization & optimization, and employee experience. For more information, visit www.dashresearch.com or call +1.720.603.1700.
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