North America Employee Recognition Software Market Outlook (2023 to 2033)

North American Employee Recognition Software Market sales revenue will total USD 2,797 million in 2023. Over the next ten years, demand for employee recognition software in North America will surge at 10.5% CAGR. By 2033, the North American employee recognition software market size is set to reach USD 7,581 million.

Employee recognition software is a reward, recognition, and incentive-focused software. This software provides companies methods to validate, recognize, and reward the employees that it considers worth the recognition and appreciation. The solution allows the users to share posts and gift cards or other rewards with the employees.

These solutions are often focused on maximizing the commendations that an employee can receive. This is the reason why several employee recognition software have features where co-workers can congratulate the achiever. They even allow for the CEO or any other in-charge to send written messages to the employees.

Employee recognition software platforms can be used across various industries and by different teams in a company. Employee recognition products or tools have become ideal for improving morale and making everyone feel valued for their work.

Employee recognition software is closely related to employee engagement software. Several people however consider it as a part of employee engagement software.

Key benefits of employee recognition software:

  • Increases productivity and engagement
  • Helps in higher employee retention
  • Improves team culture
  • Helps in fulfilling greater employee satisfaction
  • Drives employee performance
  • Helps to power up peer-to-peer recognition

North America employee recognition software market holds around 25% of the global employee recognition solution market.

Key Market Shaping Factors:

  • Increasing demand for employee recognition software from industries such as finance, manufacturing, public sector, etc. will drive North America market
  • Rising usage of social media platforms by large businesses can fuel market expansion
  • Growing bring-your-own-device (BYOD) trend will boost employee recognition software sales revenues
  • Increasing spending on employee recognition technologies by government and other businesses will stimulate market development
  • Shift towards using cloud-based services will generate lucrative opportunities for employee recognition software providers
  • Rising need for simplifying HR activities will elevate employee recognition software demand
  • Growing participation of senior management and advancements in gamification-based software will bode well for the market.
  • Surging adoption of big data and analytics is likely to create revenue-generation opportunities for employee recognition software companies
Attribute Key Insights
Estimated North America Employee Recognition Software Market Size (2023) USD 2,797 million
Projected North America Employee Recognition Software Market Size (2033) USD 7,581 million
Value-based CAGR (2023 to 2033) 10.5%
Top 5 Vendor Market Share 30.5%

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2018 to 2022 North America Employee Recognition Software Sales Outlook Compared to Demand Forecast from 2023 to 2033

As per Future Market Insights (FMI), the employee recognition market in North America grew at 8.7% CAGR from 2018 to 2022. Over the projection period (2023 to 2033), it will exhibit a CAGR of 10.5%.

Rising applications of employee recognition software across industries such as finance, manufacturing, infrastructure, and the public sector is driving the North American market.

According to the USA Bureau of Labor Statistics, healthcare is estimated to be one of the fastest-growing industries in the United States. Even the Canadian Labor Force Survey of February 2023, showed that employment is growing in the healthcare sector.

It can be estimated that the growth in the healthcare sector should provide business opportunities for employee recognition software providers in North America.

Various advantages of employee recognition software will also elevate demand across North America. Employee recognition software can motivate employees to perform better by providing rewards, incentives, and recognition.

Employee recognition software can also help boost productivity in an enterprise. The rewards, incentives, and recognitions act as motivating forces that could cause the employees to perform better at work.

The greater a reward is the greater is the motivation to achieve it. The leaderboard system in the employee recognition software can encourage employees to climb up the rankings and be among ranked among the top performers.

This system works because it appeals to the human tendency to achieve and be recognized by people for accomplishments. These factors can encourage employees to provide quality work, work for long hours, and so on.

Country-wise Insights

What Makes the United States a Dominant Employee Recognition Software Market?

Presence of Key Employee Recognition App Developers Making the USA a Dominant Market

As per Future Market Insights (FMI), the United States will hold a dominant share of 77.4% of the North America market in 2023. This is due to several factors.

Firstly, the USA has a large and diverse population, which provides a large potential customer base for software vendors. Secondly, the United States is home to various world's leading software companies, which have invested heavily in developing and marketing employee recognition software.

Finally, the USA has a strong economy and a well-developed infrastructure, which makes it easier for companies to purchase and implement employee recognition software.

How is Demand for Employee Recognition Software Rising Across Canada?

Rise in Skilled Workforce and Need for Performance Management Elevating Employee Recognition Software Demand in Canada

According to the Government of Canada, 2022 witnessed a huge flow of immigration in the country. The immigration population is estimated to increase to 30% by the end of 2036 based on the flow of immigration into their borders. Further, around 75% of the population growth that occurs in Canada happens because of immigration.

Based on the 2022 survey, immigrants accounted for 41% of engineers, 33% of business owners, and 36% of physicians. These factors suggest that the population growth that is occurring in Canada will increase the workforce that works in the numerous enterprises operating in this country.

The growth in the workforce as well as the enterprises would act as a good opportunity for the growth in the employee recognition software market in Canada.

Finally, Canadian companies have been increasingly focusing on employee engagement and retention, which is further driving demand for employee recognition software.

According to Future Market Insights (FMI)’ latest report, Canada employee recognition market will thrive at a CAGR of 12.6% through 2033.

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Sudip Saha

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Category-wise Insights

Why is Demand for Desktop-based Employee Recognition Systems Rising Across North America?

Easy to Use and Cost-Effective Nature of Desktop-Based Systems to Push Market Demand

Desktop-based employee recognition systems have the dominant market share in the North America market. This is because they are easy to use and cost-effective.

Desktop-based employee recognition systems are designed to be user-friendly, so they are easy to set up and manage. They are also more affordable than other types of employee recognition systems, making them attractive to businesses of all sizes.

Finally, desktop-based systems are more flexible than other types of recognition systems. This allows businesses to customize their recognition programs to fit their specific needs. Therefore, this segment will hold a market share of 58.5% in 2023.

Which is a Highly Remunerative Application of Employee Recognition Software?

Monetary Incentives to Generate Lucrative Revenues Through 2033

Monetary incentives will continue to lead North America employee recognition industry. This is because they provide employees with tangible rewards for their hard work and accomplishments. It is a powerful motivator and encourages employees to work harder and perform better.

Monetary incentives also create a sense of loyalty and appreciation among employees. This can help create a more positive work environment.

Further, monetary incentives provide a more direct and immediate reward than non-monetary recognition, which can be more effective in motivating employees.

Thanks to the aforementioned factors, monetary incentives segment will thrive at 12.3% CAGR through 2033.

Why is the Popularity of Cloud-based/Web-based Employee Recognition Software Rising?

Various Advantages Offered by Cloud-based Software Fueling its Popularity

Cloud-based employee recognition software is growing in popularity across North America. This is because it offers a number of advantages over traditional forms of recognition and employee engagement programs. These include cost savings, scalability, flexibility, and ease of use.

Cloud-based or web-based employee recognition software is also more accessible to a wider range of users. It can be used across multiple platforms, making it easier for companies to implement and manage recognition programs.

Further, cloud-based software can often be customized to fit the specific needs of the individual company, providing a more tailored experience for users. Thanks to these reasons, the target segment will hold a market share of 41.1% in 2023.

Which Enterprise Size Segment Dominates North American Market?

Very Large Enterprises to Dominate North America Market for Employee Recognition Software

Very large enterprises will continue to lead the North American employee recognition industry. This is because they have the resources and infrastructure to implement large-scale recognition programs. These programs often include sophisticated technology, such as software and hardware solutions, that can be used to track and reward employees.

Similarly, very large enterprises typically have the budget to invest in employee recognition initiatives and the staff to manage and implement them.

Finally, they have the clout to negotiate better deals with vendors and suppliers, which can help them save money while still providing quality recognition services. Therefore, these reasons will help the target segment to have a market share of 36.4% in 2023.

Competitive Landscape

The North American employee recognition market is highly competitive due to the presence of a significant number of established players. These players offer a wide range of employee recognition solutions, such as rewards and recognition programs, employee engagement platforms, and performance management tools.

A few recent developments:

  • In 2021, Achievers announced the acquisition of Kudos, a leading provider of employee recognition and rewards solutions. The acquisition will enable Achievers to expand its product portfolio and offer customers more comprehensive recognition solutions.
  • In 2020, Globoforce launched a new platform, GForce, to help organizations create a culture of recognition and engagement. The platform enables companies to recognize and reward employees for their achievements and contributions.

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Scope of Report

Attribute Details
Estimated Market Value (2023) USD 2,797 million
Projected market Value (2033) USD 7,581 million
Anticipated Growth Rate (2023 to 2033) 10.5%
Share of top 5 players 30.5%
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis USD Million for Value
Key Regions Covered North America
Key Countries Covered USA and Canada
Key Segments Covered System Type, Application, Deployment Mode, Enterprise Size, Industry, and Country
Key Companies Profiled Guusto; Inspirus (Sodexco); Workhuman; Terry berry; Bucket list; Vantage Circle; Assembly; Motivosity; Blueboard; Nectar; Reward Gateway; WorkTango (formerly Kazoo); Achievers; Awardco; Bonusly; C.A. Short; Engage2Excel; Halo; Kudos; MTM Recognition; OC Tanner
Report Coverage Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

North America Employee Recognition Software Market Segmentation

By System Type:

  • App-based Employee Recognition Systems
  • Desktop-based Employee Recognition Systems

By Application:

  • E-Gift Cards
  • Instant Payment Vouchers
  • Personalized Gifts (Tailor-made rewards)
  • Vacation Rewards
  • Tickets for Events
  • Monetary Incentives
  • Learning and Development Rewards

By Deployment Mode:

  • Cloud-based/Web-based Employee Recognition Software
  • On-Premises Employee Recognition Software
  • Custom-based Employee Recognition Software

By Enterprise Size:

  • Small Offices (1 to 9 employees)
  • Small Enterprises (10 to 99 employees)
  • Medium-sized Enterprise (100 to 499 employees)
  • Large Enterprises (500 to 999 employees)
  • Very Large Enterprises (1,000+ employees)

By Industry:

  • Finance
    • Banking
    • Insurance
    • Investment/Securities
  • Manufacturing & Resources
    • Discrete Manufacturing
    • Process Manufacturing
    • Resource industries
    • Agriculture
  • Distribution Services
    • Retail
    • Wholesales
    • Transportation /Logistics Services
    • Warehousing & Storage
    • Shipping
  • Services
    • IT/Professional Services
    • Consumer & Personal Services
    • Media, Entertainment & Publishing
    • Travel & Hospitality
    • Legal Services
  • Public Sector
    • Government (State/Central)
    • Education
    • Healthcare
    • Aerospace & Defense
    • Non-Profit
  • Infrastructure
    • Telecommunication
    • Energy & Utilities
    • Building & Construction

By Country:

  • USA
  • Canada

Frequently Asked Questions

How Big is the North America Employee Recognition Software Market in 2023? 

The market is valued at USD 2.7 billion in 2023. 

Who are the Key Market Players? 

Guusto, Inspirus (Sodexco), and Workhuman are key market players. 

What is the Growth Forecast for the Market? 

The market is forecast to register a CAGR of 10.5% through 2033. 

Which Key Segment is Maximizing Growth Potential by System Type? 

Desktop-based segment is likely to remain preferred through 2033. 

Which is the Top Trend in the Market? 

Increasing need for simplifying HR activities, is encouraging the sales. 

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Key Market Trends
	4. Pricing Analysis
	5. Market Demand (in Value in USD million) Analysis 2018 to 2022 and Forecast, 2023 to 2033
	6. Market Background
	7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System Type
		7.1. App-based Employee Recognition Systems
		7.2. Desktop-based Employee Recognition Systems
	8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
		8.1. E-Gift Cards
		8.2. Instant Payment Vouchers
		8.3. Personalized Gifts (Tailor-made rewards)
		8.4. Vacation Rewards
		8.5. Tickets for Events
		8.6. Monetary Incentives
		8.7. Learning and Development Rewards
		8.8. Others
	9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Mode
		9.1. Cloud-based/Web-based Employee Recognition Software
		9.2. On-Premises Employee Recognition Software
		9.3. Custom-based Employee Recognition Software
	10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size
		10.1. Small Offices (1 to 9 employees)
		10.2. Small Enterprises (10 to 99 employees)
		10.3. Medium-sized Enterprises (100 to 499 employees)
		10.4. Large Enterprises (500 to 999 employees)
		10.5. Very Large Enterprises (1,000+ employees)
	11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry
		11.1. Finance
			11.1.1. Banking
			11.1.2. Insurance
			11.1.3. Investment/Securities
		11.2. Manufacturing to Resources
			11.2.1. Discrete Manufacturing
			11.2.2. Process Manufacturing
			11.2.3. Resource Industries
			11.2.4. Agriculture
		11.3. Distribution Services
			11.3.1. Retail
			11.3.2. Wholesale
			11.3.3. Transportation/Logistics Services
			11.3.4. Warehousing to Storage
			11.3.5. Shipping
		11.4. Services
			11.4.1. IT/Professional Services
			11.4.2. Consumer to Personal Services
			11.4.3. Media, Entertainment to Publishing
			11.4.4. Travel to Hospitality
			11.4.5. Legal Services
		11.5. Public Sector
			11.5.1. Government (State/Central)
			11.5.2. Education
			11.5.3. Healthcare
			11.5.4. Aerospace to Defense
			11.5.5. Non-Profit
		11.6. Infrastructure
			11.6.1. Telecommunication
			11.6.2. Energy to Utilities
			11.6.3. Building to Construction
	12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
		12.1. USA
		12.2. Canada
	13. Country-wise Market
	14. Market Structure Analysis
	15. Competition Analysis
		15.1. Guusto
		15.2. Inspirus (Sodexo)
		15.3. Workhuman
		15.4. Terryberry
		15.5. Bucketlist
		15.6. Vantage Circle
		15.7. Assembly
		15.8. Motivosity
		15.9. Blueboard
		15.10. Nectar
		15.11. Reward Gateway
		15.12. WorkTango
		15.13. Achievers
		15.14. Awardco
		15.15. Bonusly
		15.16. C.A. Short
		15.17. Engage2Excel
		15.18. Halo
		15.19. Kudos
		15.20. MTM Recognition
		15.21. OC Tanner
	16. Assumptions and Acronyms Used
	17. Research Methodology

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