North American employee recognition software market sales revenue will total US$ 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 US$ 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:
North America employee recognition software market holds around 25% of the global employee recognition solution market.
Key Market Shaping Factors:
| Attribute | Key Insights |
|---|---|
| Estimated North America Employee Recognition Software Market Size (2023) | US$ 2,797 million |
| Projected North America Employee Recognition Software Market Size (2033) | US$ 7,581 million |
| Value-based CAGR (2023 to 2033) | 10.5% |
| Top 5 Vendor Market Share | 30.5% |
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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.
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.
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.
Principal Consultant
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.
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.
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.
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.
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:
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| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | US$ 2,797 million |
| Projected market Value (2033) | US$ 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 | US$ 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 |
The market is valued at US$ 2.7 billion in 2023.
Guusto, Inspirus (Sodexco), and Workhuman are key market players.
The market is forecast to register a CAGR of 10.5% through 2033.
Desktop-based segment is likely to remain preferred through 2033.
Increasing need for simplifying HR activities, is encouraging the sales.
1. Executive Summary
1.1. Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition
3. Key Market Trends
3.1. Key Trends Impacting the Market
3.2. Solution Innovation / Development Trends
4. Pricing Analysis
4.1. Pricing Analysis, By Employee Recognition Software
4.1.1. Subscription Pricing Analysis
4.1.2. Perpetual Licensing
4.2. pricing analysis benchmark
5. Market Demand (in Value in US$ million) Analysis 2018 to 2022 and Forecast, 2023 to 2033
5.1. Historical Market Value (US$ million) Analysis, 2018 to 2022
5.2. Current and Future Market Value (US$ million) Projections, 2023 to 2033
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis
6. Market Background
6.1. Macro-Economic Factors
6.2. Forecast Factors - Relevance to Impact
6.3. Value Chain Analysis
6.4. COVID-19 Crisis – Impact Assessment
6.4.1. Current Statistics
6.4.2. Short-Mid-Long Term Outlook
6.4.3. Likely Rebound
6.5. Market Dynamics
6.5.1. Drivers
6.5.2. Restraints
6.5.3. Opportunities
7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System Type
7.1. Introduction / Key Findings
7.2. Historical Market Size (US$ million) Analysis By System Type, 2018 to 2022
7.3. Current and Future Market Size (US$ million) Analysis and Forecast By System Type, 2023 to 2033
7.3.1. App-based Employee Recognition Systems
7.3.2. Desktop-based Employee Recognition Systems
7.4. Market Attractiveness Analysis By System Type
8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
8.1. Introduction / Key Findings
8.2. Historical Market Size (US$ million) Analysis By Application, 2018 to 2022
8.3. Current and Future Market Size (US$ million) Analysis and Forecast By Application, 2023 to 2033
8.3.1. E-Gift Cards
8.3.2. Instant Payment Vouchers
8.3.3. Personalized Gifts (Tailor-made rewards)
8.3.4. Vacation Rewards
8.3.5. Tickets for Events
8.3.6. Monetary Incentives
8.3.7. Learning and Development Rewards
8.3.8. Others
8.4. Market Attractiveness Analysis By Application
9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Mode
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ million) Analysis By Deployment Mode, 2018 to 2022
9.3. Current and Future Market Size (US$ million) Analysis and Forecast By Deployment Mode, 2023 to 2033
9.3.1. Cloud based/Web-based Employee Recognition Software
9.3.2. On-Premises Employee Recognition Software
9.3.3. Custom-based Employee Recognition Software
9.4. Market Attractiveness Analysis By Deployment Mode
10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ million) Analysis By Enterprise Size, 2018 to 2022
10.3. Current and Future Market Size (US$ million) Analysis and Forecast By Enterprise Size, 2023 to 2033
10.3.1. Small Offices (1 to 9 employees)
10.3.2. Small Enterprises (10 to 99 employees)
10.3.3. Medium-sized Enterprise (100 to 499 employees)
10.3.4. Large Enterprises (500 to 999 employees)
10.3.5. Very Large Enterprises (1,000+ employees)
10.4. Market Attractiveness Analysis By Enterprise Size
11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry
11.1. Introduction / Key Findings
11.2. Historical Market Size (US$ million) Analysis By Industry, 2018 to 2022
11.3. Current and Future Market Size (US$ million) Analysis and Forecast By Industry, 2023 to 2033
11.3.1. Finance
11.3.1.1. Banking
11.3.1.2. Insurance
11.3.1.3. Investment/Securities
11.3.2. Manufacturing to Resources
11.3.2.1. Discrete Manufacturing
11.3.2.2. Process Manufacturing
11.3.2.3. Resource industries
11.3.2.4. Agriculture
11.3.3. Distribution Services
11.3.3.1. Retail
11.3.3.2. Wholesales
11.3.3.3. Transportation /Logistics Services
11.3.3.4. Warehousing to Storage
11.3.3.5. Shipping
11.3.4. Services
11.3.4.1. IT/Professional Services
11.3.4.2. Consumer to Personal Services
11.3.4.3. Media, Entertainment to Publishing
11.3.4.4. Travel to Hospitality
11.3.4.5. Legal Services
11.3.5. Public Sector
11.3.5.1. Government (State/Central)
11.3.5.2. Education
11.3.5.3. Healthcare
11.3.5.4. Aerospace to Defense
11.3.5.5. Non-Profit
11.3.6. Infrastructure
11.3.6.1. Telecommunication
11.3.6.2. Energy to Utilities
11.3.6.3. Building to Construction
11.4. Market Attractiveness Analysis By Industry
12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Country
12.1. Introduction / Key Findings
12.2. Historical Market Size (US$ million) Analysis By Country, 2018 to 2022
12.3. Current and Future Market Size (US$ million) Analysis and Forecast By Country, 2023 to 2033
12.3.1. USA
12.3.2. Canada
12.4. Market Attractiveness Analysis By Country
12.5. Market Trends
12.6. Key Market Participants - Intensity Mapping
13. Country wise- Market
13.1. USA Employee Recognition Software Market Analysis
13.1.1. By System Type
13.1.2. By Application
13.1.3. By Deployment Mode
13.1.4. By Enterprise Size
13.1.5. By Industry
13.2. Canada Employee Recognition Software Market Analysis
13.2.1. By System Type
13.2.2. By Application
13.2.3. By Deployment Mode
13.2.4. By Enterprise Size
13.2.5. By Industry
14. Market Structure Analysis
14.1. Market Analysis by Tier of Companies
14.2. Market Share Analysis of Top Players
14.3. Market Presence Analysis, Country-Wise footprint by Players
15. Competition Analysis
15.1. Competition Dashboard
15.2. Competition Deep Dive
15.2.1. Guusto
15.2.1.1. Business Overview
15.2.1.2. Solution Portfolio
15.2.1.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.1.4. Strategy Overview
15.2.1.4.1. Marketing Strategy
15.2.1.4.2. Product Strategy
15.2.2. Inspirus (Sodexo)
15.2.2.1. Business Overview
15.2.2.2. Solution Portfolio
15.2.2.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.2.4. Strategy Overview
15.2.2.4.1. Marketing Strategy
15.2.2.4.2. Product Strategy
15.2.3. Workhuman
15.2.3.1. Business Overview
15.2.3.2. Solution Portfolio
15.2.3.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.3.4. Strategy Overview
15.2.3.4.1. Marketing Strategy
15.2.3.4.2. Product Strategy
15.2.4. Terryberry
15.2.4.1. Business Overview
15.2.4.2. Solution Portfolio
15.2.4.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.4.4. Strategy Overview
15.2.4.4.1. Marketing Strategy
15.2.4.4.2. Product Strategy
15.2.5. Bucketlist
15.2.5.1. Business Overview
15.2.5.2. Solution Portfolio
15.2.5.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.5.4. Strategy Overview
15.2.5.4.1. Marketing Strategy
15.2.5.4.2. Product Strategy
15.2.6. Vantage Circle
15.2.6.1. Business Overview
15.2.6.2. Solution Portfolio
15.2.6.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.6.4. Strategy Overview
15.2.6.4.1. Marketing Strategy
15.2.6.4.2. Product Strategy
15.2.7. Assembly
15.2.7.1. Business Overview
15.2.7.2. Solution Portfolio
15.2.7.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.7.4. Strategy Overview
15.2.7.4.1. Marketing Strategy
15.2.7.4.2. Product Strategy
15.2.8. Motivosity
15.2.8.1. Business Overview
15.2.8.2. Solution Portfolio
15.2.8.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.8.4. Strategy Overview
15.2.8.4.1. Marketing Strategy
15.2.8.4.2. Product Strategy
15.2.9. Blueboard
15.2.9.1. Business Overview
15.2.9.2. Solution Portfolio
15.2.9.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.9.4. Strategy Overview
15.2.9.4.1. Marketing Strategy
15.2.9.4.2. Product Strategy
15.2.10. Nectar
15.2.10.1. Business Overview
15.2.10.2. Solution Portfolio
15.2.10.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.10.4. Strategy Overview
15.2.10.4.1. Marketing Strategy
15.2.10.4.2. Product Strategy
15.2.11. Reward Gateway
15.2.11.1. Business Overview
15.2.11.2. Solution Portfolio
15.2.11.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.11.4. Strategy Overview
15.2.11.4.1. Marketing Strategy
15.2.11.4.2. Product Strategy
15.2.12. WorkTango
15.2.12.1. Business Overview
15.2.12.2. Solution Portfolio
15.2.12.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.12.4. Strategy Overview
15.2.12.4.1. Marketing Strategy
15.2.12.4.2. Product Strategy
15.2.13. Achievers
15.2.13.1. Business Overview
15.2.13.2. Solution Portfolio
15.2.13.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.13.4. Strategy Overview
15.2.13.4.1. Marketing Strategy
15.2.13.4.2. Product Strategy
15.2.14. Awardco
15.2.14.1. Business Overview
15.2.14.2. Solution Portfolio
15.2.14.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.14.4. Strategy Overview
15.2.14.4.1. Marketing Strategy
15.2.14.4.2. Product Strategy
15.2.15. Bonusly
15.2.15.1. Business Overview
15.2.15.2. Solution Portfolio
15.2.15.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.15.4. Strategy Overview
15.2.15.4.1. Marketing Strategy
15.2.15.4.2. Product Strategy
15.2.16. C.A. Short
15.2.16.1. Business Overview
15.2.16.2. Solution Portfolio
15.2.16.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.16.4. Strategy Overview
15.2.16.4.1. Marketing Strategy
15.2.16.4.2. Product Strategy
15.2.17. Engage2Excel
15.2.17.1. Business Overview
15.2.17.2. Solution Portfolio
15.2.17.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.17.4. Strategy Overview
15.2.17.4.1. Marketing Strategy
15.2.17.4.2. Product Strategy
15.2.18. Halo
15.2.18.1. Business Overview
15.2.18.2. Solution Portfolio
15.2.18.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.18.4. Strategy Overview
15.2.18.4.1. Marketing Strategy
15.2.18.4.2. Product Strategy
15.2.19. Kudos
15.2.19.1. Business Overview
15.2.19.2. Solution Portfolio
15.2.19.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.19.4. Strategy Overview
15.2.19.4.1. Marketing Strategy
15.2.19.4.2. Product Strategy
15.2.20. MTM Recognition
15.2.20.1. Business Overview
15.2.20.2. Solution Portfolio
15.2.20.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.20.4. Strategy Overview
15.2.20.4.1. Marketing Strategy
15.2.20.4.2. Product Strategy
15.2.21. OC Tanner
15.2.21.1. Business Overview
15.2.21.2. Solution Portfolio
15.2.21.3. Profitability by Market Segments (System Type/Application/Deployment Mode/Enterprise Size/IndustryRegion)
15.2.21.4. Strategy Overview
15.2.21.4.1. Marketing Strategy
15.2.21.4.2. Product Strategy
16. Assumptions and Acronyms Used
17. Research Methodology
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North America Employee Recognition Software Market
