The global employee recognition software market is expected to reach the valuation of USD 17,931.2 million in 2024. According to the analysis, the industry is projected to grow at a CAGR of 9.4% from 2024 to 2034 with global adoption of digital solutions. The industry is foreseen to surpass USD 43,840.1 million Showcasing advancements in the industry through 2034.
Employee recognition software influences workplace culture and employee engagement heavily, making it crucial in today's organizational management. It's an essential platform as it creates a system for the recognition process making sure employees get credit for their work in a clear and fair way. By providing a set up to recognize achievements, the software helps encourage good behaviors and line up what employees do with company goals.
This makes workers happier in their jobs and also boosts productivity and job retention. In a competitive job market, effective recognition systems can make an organization stand out as a great place to work helping to bring in new talent.
Also, the software gives data-based insights into how employees perform and get recognized letting managers make smart choices and adjust their recognition plans to fit what their different workers need. As companies focus more on making work a good experience, recognition software plays a key role to create a supportive and motivating workplace.
Global Employee Recognition Software Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 16,531.6 million |
| Estimated Size, 2024 | USD 17,931.2 million |
| Projected Size, 2034 | USD 43,840.1 million |
| Value-based CAGR (2024 to 2034) | 9.4% CAGR |
Employee recognition software focuses on more than just celebrating achievements. It boosts worker engagement and drive by giving timely and meaningful praise, which is key to keep job satisfaction and morale high. The automatic features in the software make the recognition process easier reducing paperwork and making sure all workers get fair and consistent recognition.
It also allows for instant feedback and coworker-to-coworker praise creating a culture where people appreciate and work together. This ongoing feedback helps in spotting and fixing performance issues making everyone more productive. The software gives useful analytics and reporting tools to track recognition patterns, in order to understand how well recognition programs work, and improve strategies based on real data.
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
This below table presents the expected CAGR for the Global employee recognition software market over several semi-annual periods spanning from 2023 to 2033. In the first half (H1) of the year from 2023 to 2033, the industry is predicted to surge at a CAGR of 10.1%, followed by a considerably lower growth rate of 9.3% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 10.1% (2023 to 2033) |
| H2, 2023 | 9.3% (2023 to 2033) |
| H1, 2024 | 9.8% (2024 to 2034) |
| H2, 2024 | 9.5% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to hold at 9.8% in the first half from 2024 to 2034 and remain considerably decrease at 9.5% in the second half 2024 to 2034. In the first half (H1) 2024 to 2034 the market witnessed a decrease of 30 BPS while in the second half (H2) 2024-2034 the market witnessed an increase of 20 BPS.
Emphasis on Employee Engagement to Improve Productivity and Employee Retention
Organizations are now recognizing that giving props to their workers improves the productivity, hence there's more demand for recognition platforms that cater to the diverse needs of modern workforces.
Big players like Microsoft are getting into game-like rewards. They are setting-up their platforms with points, prizes, and scoreboards. This approach seems to work as few of the company’s employee retention rates have increased by as much as 40%.
Making the whole props-giving thing more like a game doesn't just up the fun; it makes sure everyone knows what the target is and lets peeps know right away when they're doing it right, which helps keep them on their toes.
Organizations are folding recognition right into the daily activities. There are tools like Slack, Teams, and dedicated recognition platforms that let employees drop some kudos to their coworkers in real-time. This kind of constant, back-and-forth praising creates an environment where everyone's feeling valued all the time, which pumps up the positivity and keeps spirits high.
Companies are using employee performance data to make recognition efforts more personalized and effective. This helps improve employee engagement and benefits both employees and employers.
Enhancements in Workplace Culture and Employer Branding
Businesses are now understanding that a good workplace culture doesn't just bring in the best workers - it keeps them around too. This leads to staff who are more involved and productive. As businesses try to build places where employees feel appreciated and driven, they're starting to use recognition software as a key way to appreciate good behavior, match company values, and make employees happier in the long run.
Take Microsoft, for example. They added a recognition feature into their Office 365 and Teams platforms. This addition let managers give quick specific praise without breaking their work flow. It caused a 20% jump in how often recognition happened and a clear rise in employee engagement scores. This move shows how recognition software can fit in with the tools people already use at work to improve workplace culture.
Autodesk provides another example with its recognition program that centers on company values through specially designed badges. This method has an impact on both the number of employees recognized and the alignment of employee actions with the company's social responsibility goals. As a result, it strengthens the company's culture and employer brand.
These cases show how businesses are using recognition software to build a positive workplace culture that boosts their brand, not just to reward staff. Companies are using recognition software to stand out in the fierce competition for top talent, making it a key part of modern HR approaches.
Data Privacy & Security Concerns Over Employees Private Information
Employee recognition tools link up with HR systems, gathering and keeping employees personal details, performance data and even behavioral analytics. This makes them prime targets for cyberattacks. For example, a 2023 study showed that many businesses using employee recognition systems had their data stolen exposing workers private information.
Various companies have suffered data leaks that revealed personal info of workers from several big international firms. These breach don't just shake trust between the provider and its customers. They also lead to closer looks at how these platforms handle and protect data. Therefore, many companies still hesitate before using these platforms unless they have strong security in place.
Apart from that, complex regulations like Europe's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in the United States demands that the businesses must be able to handle and secure personal information of employees.
Not following these laws can lead to big fines and legal trouble making it even harder to use and run employee recognition software. Take this example: In 2022, a company in Europe got hit with heavy penalties because its employee recognition software didn't protect user data well enough, which led to unauthorized access of the private platforms.
Principal Consultant
The employee recognition software market went through notable fluctuations and technological advancements in the historical period. The industry was valued at a valuation of USD 12,389.5 million in 2019 to reach USD 16,531.6 million in 2023 with a CAGR of 7.5% from 2019 to 2023.
During pandemic, the rise in remote working trends created the high demand for employee recognition software. The demand continued to rise in the next years with increasing need for employee engagement and productivity among businesses.
Employee recognition software market witnessed a considerable growth during the forecasting period between 2024 and 2034. The market reached the valuation of USD 43,840.1 million in 2034 from USD 17,931.2 million in 2024 with the CAGR of 9.4%.
With evolving workspaces, the younger generation in the corporate sector is looking to achieve recognition. With continuous advancements in the technology sector, the integration of AI and ML with these software are expected to only drive the demand further.
Tier 1 companies in the market focus on providing employee recognition solutions with the capabilities of advanced level integration. These vendors in the market include Workhuman, OC Tanner among other. These vendors provide end-to-end solutions with holding market share around 30%-35% globally.
Tier 2 vendors in the global employee recognition software market are focusing on enhancing their end-to-end solutions capability. These vendors have the global market reach but lack in competing owing to the gaps in features and capabilities. The vendors in tier 2 bracket includes MTM Recognition, Achievers, Terryberry among others. These vendors hold around 25% to 30% market share.
Tier 3 companies represent 35% to 40% of share of total employee recognition software industry. These vendors focus on the market expansion and providing customer specific solutions. The vendors in the bracket includes Inspirus, Vantage Circle, Bonusly among others.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The below country-wise market analysis of the employee recognition software explains the recent developments and different government approaches in the market. The analysis also gives an idea of the country’s expected progress in the market landscape.
The data describes key highlights, growth factors, and CAGRs of these countries.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| India | 12.7% |
| China | 11.5% |
| USA | 9.1% |
| Germany | 8.8% |
India's employee recognition software market is growing fast. This growth is happening because of a larger workforce, increased use of digital HR tools, and rising importance of employee engagement in a competitive labor market. Millions of people work in India's IT and services industries, which need robust tools to retain top talent and maintain productivity.
Take Xoxoday as an example. It's an Indian SaaS platform offering employee engagement and rewards. Xoxoday has grown a lot, both in India and other countries. Its success shows that companies want systems that work well for Indian businesses. These systems need things like rewards that can be changed to fit each company and the ability to work with popular apps like WhatsApp that people use to talk to each other. According to PeopleStrong, Xoxoday server more than 2000 employers and 2.5 million employees.
China's employee recognition software market is growing fast, with its booming business sector and companies new focus on keeping employees happy and motivated. Chinese firms now see the value of creating a favorable work environment to boost output leading to more companies using employee recognition tools.
JD.com one of China's biggest e-commerce companies, shows how this works. They've started using employee recognition software to improve morale and retain talent in a highly competitive market. The company has linked its recognition programs to its in-house messaging systems giving quick feedback and rewards. This has played a big part in keeping their workers engaged.
With businesses putting efforts to keep working environment positive amid moving to hybrid and remote work models, they need better ways to recognize employees. This has led to a big increase in the need for good recognition tools. Big companies like HubSpot in 2023, started using more employee recognition platforms such as Bonusly. They did this to help their remote teams stay engaged and keep their motivation high.
Companies based in the USA face increasing pressure to adapt to changing workplace norms and what employees expect. These platforms focus on building a culture where people feel appreciated aiming to lift spirits and employee retention. The push comes from the need to hold onto the best workers in a job market where competition is fierce. A report by the Society for Human Resource Management (SHRM) shows this trend, with 63% of companies spending more on programs to recognize employees in 2023.
Also, the USA government's focus on better workplace standards has had an influence on this market. Companies can get tax breaks for investing into programs that boost employee well-being and engagement. This backing from regulators, along with new tech developments, has made the USA a frontrunner in the global market for employee recognition software.
The below section provides the category wise insights in the market with recent developments and future projections.
| Segment | Cloud (Deployment) |
|---|---|
| Value Share (2024) | 48.0% |
Cloud-based employee recognition solutions now dominate the market. They're flexible, scalable, and easy to integrate with other enterprise systems. Take Workhuman as an example. Their cloud-based platform lets you recognize people in real-time and works with HR systems. It's being used worldwide with over 5 million people using it. Bonusly is another popular choice. Their cloud-based recognition platform has made a name for itself by working well with tools like Slack and Microsoft Teams.
| Segment | Desktop-based Employee Recognition Systems (System Type) |
|---|---|
| Value Share (2024) | 52.9% |
Desktop systems lead the employee recognition software market because of their strong features and ability to work with other company systems. These systems offer comprehensive solutions, like in-depth analytics customizable rewards, and safe data handling, which big companies need. Take O.C. Tanner and Terryberry, for instance. They offer desktop platforms with extensive reporting tools that are popular in industries where data security and following rules are super important.
In 2023, Achievers gave its desktop platform a makeover. They added better data analytics and made it play nice with enterprise resource planning (ERP) systems. This update was aimed at big businesses with complicated structures.
The employee recognition software market faces tough competition driven by companies focusing more on keeping workers happy and engaged. Many different companies, both major and established ones and new startups, are trying to achieve market share. They're all trying to differentiate by coming up with new ideas making their software easy to use, and offering products that can grow with a company and be tailored to what each business needs.
The main things these companies compete on are using advanced data analysis giving recognition right away, and adding features that work like social media for recognizing coworkers. Also, keeping data safe and following privacy laws around the world are becoming more important as companies worry about protecting their employees' information.
Price competitiveness has a big impact as more vendors switch to subscription-based models that suit small and medium-sized enterprises (SMEs). Vendors feel pressure to keep improving their products aiming to stand out by offering unique rewards and smooth connections with other HR systems.
Recent Market Developments
The industry includes App-based Employee Recognition Systems and Desktop-based Employee Recognition Systems
The segment is divided into cloud, on premise and custom-based.
Small Offices (1-9 employees), Small Enterprises (10-99 employees), Medium-sized Enterprise (100-499 employees), Large Enterprises (500-999 employees) and Very Large Enterprises (1,000+ employees) are segmented in this category.
Finance, Manufacturing & Resources, Distribution Services, Services, Public Sector and Infrastructure are segmented in this category.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific Western Europe, Eastern Europe and Middle East and Africa (MEA).
The global industry is set to reach USD 17,931.2 million in 2024.
Demand is predicted to rise at 9.4 % CAGR.
Global sales are estimated to total USD 43,840.1 million by 2034.
South Asia & Pacific is set to offer lucrative opportunities rising with a CAGR of 12.1%.
Guusto, Inspirus (Sodexco), Workhuman, Terryberry, Bucketlist, Vantage Circle among others.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Pricing Analysis, By Software Type 5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By System Type 6.1. App-based Employee Recognition Systems 6.2. Desktop-based Employee Recognition Systems 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment 7.1. Cloud-based 7.2. On-Premise 7.3. Custom-based 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Enterprise Size 8.1. Small Offices (1-9 employees) 8.2. Small Enterprises (10-99 employees) 8.3. Medium-sized Enterprise (100-499 employees) 8.4. Large Enterprises (500-999 employees) 8.5. Very Large Enterprises (1,000+ employees) 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry 9.1. Finance 9.2. Manufacturing & Resources 9.3. Distribution Services 9.4. Services 9.5. Public Sector 9.6. Infrastructure 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. East Asia 10.4. South Asia & Pacific 10.5. Western Europe 10.6. Eastern Europe 10.7. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 By System Type, Deployment, Enterprise Size, Industry for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Guusto 20.2. Inspirus (Sodexco) 20.3. Workhuman 20.4. Terryberry 20.5. Bucketlist 20.6. Vantage Circle 20.7. Assembly 20.8. Motivosity 20.9. Blueboard 20.10. Nectar 20.11. Reward Gateway 20.12. WorkTango (formerly Kazoo) 20.13. Achievers 20.14. Awardco 20.15. Bonusly 20.16. C.A. Short
Explore Technology Insights
View Reports
Employee Recognition Software Market
