Employee Experience Management Market by Offering (Software, Services), Standalone Software (Employee Survey & Feedback, Employee Engagement, Employee Recognition & Rewards), Industry (BFSI, Healthcare, IT & ITeS) and Region - Global Forecast to 2028
[218 Pages Report] The employee experience management market size is projected to grow from USD 6.8 billion in 2023 to USD 11.1 billion by 2028 at a CAGR of 10.2% during the forecast period. The one-size-fits-all approach is crumbling as employees crave customized experiences tailored to their unique needs and preferences. Companies are embracing personalized learning paths, flexible benefits, and recognition programs, attracting and retaining loyal, motivated employees, ultimately gaining a competitive edge.
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Employee Experience Management Market Dynamics
Driver: Escalating demand for real-time performance management
Organizations are realizing the importance of adopting flexible and adaptive approaches to continuously evaluate, guide, and improve employee performance. This shift departs from traditional, infrequent performance reviews and instead embraces ongoing feedback loops and immediate recognition. Real-time performance management aligns with the changing work environment and meets the expectations of modern employees who seek prompt feedback and recognition. By utilizing technology and data analytics, solutions for employee experience management enable organizations to monitor and respond to performance metrics swiftly, leading to a more engaged and productive workforce. The increasing demand for real-time performance management as part of the broader employee experience management framework reflects a strategic focus on creating a responsive, adaptable, and supportive work environment that promotes individual and collective success.
Restraint: Data privacy concerns
As organizations continue to gather and analyze employee data to improve the overall employee experience, there is a growing concern about the possible invasion of privacy. Employees may feel uneasy about how much of their personal and professional information is being monitored and utilized. This concern can lead to resistance from both employers, who are wary of potential legal consequences, and employees, who may be afraid of violating their privacy rights. Striking a balance between extracting valuable insights from employee data and ensuring strict compliance with privacy regulations is a significant challenge for EXM providers.
Opportunity: Reduced burnout and increased well-being
According to recent findings by Slack, middle managers in the United States are experiencing a significant issue of burnout. 43% of middle managers face burnout, which is higher than other worker groups. Moreover, women have a 32% higher burnout rate compared to men. This highlights the need for practical solutions to address this problem. Harvard research estimates employee burnout costs American businesses up to USD 190 billion annually. This highlights a significant opportunity for innovative employee experience management solutions that can help organizations tackle and prevent burnout. Tools like Microsoft's Viva Insights can identify potential burnout indicators such as extended working hours, allowing companies to invest in comprehensive employee experience management strategies. As businesses increasingly recognize the impact of burnout on their bottom line, there is a growing market for solutions that proactively manage and enhance the overall employee experience.
Challenge: Remote workers to pose unique hurdles for organizations
Communication and collaboration can become complex when employees are not physically present in an office, impacting transparency and alignment between employees and management. Onboarding, a critical element in fostering a robust employee-organization relationship, requires careful planning for remote workers to ensure a smooth integration process. The lack of a shared workspace may hinder managers from appreciating team members, recognizing their efforts, or providing timely feedback. If left unaddressed, these challenges can negatively impact the overall employee experience.
To navigate the complexities of remote work, organizations should establish robust communication channels that foster connections among remote employees, managers, and C-level executives. Additionally, creating a comprehensive remote onboarding experience is crucial, including a clear organizational mission, technical training, interpretation of critical responsibilities, and the introduction of essential resources. Addressing these challenges is essential to maintaining a positive and engaging employee experience in the remote work paradigm.
Ecosystem Of Employee Experience Management Market
The BFSI industry registered the highest CAGR in the employee experience management market during the forecast period.
Employee experience management is crucial in the BFSI industry to create a work environment that attracts top talent and ensures sustained engagement and productivity. Since the sector is dynamic and characterized by fast-paced operations and stringent regulatory frameworks, employee experience management strategies in BFSI focus on various aspects. To comply with industry changes, training and development programs are designed to equip employees with the necessary skills. The BFSI sector has been at the forefront of digital transformation, leveraging technology to streamline processes, improve efficiency, and enhance employee experience. Digital tools and platforms are often integrated to facilitate remote work, collaboration, and communication. Fostering a positive workplace culture is a crucial aspect of employee experience management in BFSI. This includes initiatives to enhance work-life balance, mental health support, and recognition for achievements. Organizations in the BFSI sector often invest in creating a transparent and ethical work environment, given the sensitive nature of financial services, where trust and integrity are paramount.
Employee engagement software is expected to hold the largest market size during the forecast.
Employee engagement refers to the level of emotional commitment and involvement that employees have towards their work, their organization, and its goals. A highly engaged workforce is characterized by individuals who feel a sense of purpose and enthusiasm about their roles and exhibit a solid connection to the organization's values and mission. Various factors contribute to employee engagement, including effective communication, supportive leadership, opportunities for professional development, and a positive work environment. Engaged employees are more likely to be productive, innovative, and committed to the long-term success of the organization. Leading solutions in the employee engagement market allow organizations to tailor the platform to their needs. This includes customization of surveys, feedback forms, and recognition programs, enabling organizations to align the software with their unique culture and goals. Organizations need to monitor and understand employee engagement levels through surveys and feedback mechanisms to identify areas for improvement, foster a positive workplace culture, and ultimately enhance overall employee satisfaction and performance.
Based on region, North America is expected to hold the largest market size during the forecast.
The North American region, which includes the United States and Canada, is at the forefront of shaping employee experience management. Both countries, with strong and sustainable economies, play a significant role in driving research and development (R&D) activities, influencing innovations in the employee experience management market. A recent survey by Slack highlights a concerning scenario in the United States, where 43% of middle managers are experiencing burnout, surpassing other worker groups. Notably, women's burnout rates are 32% higher than those of men. This issue has far-reaching consequences for businesses, with Harvard research estimating that employee burnout costs American companies up to $190 billion annually. Fortunately, proactive measures, such as utilizing tools like Microsoft's Viva Insights, can help identify employees at risk of burnout based on their work habits, such as those working beyond regular hours.
Market Players:
The major vendors in this market include Qualtrics (US), SAP (Germany), Oracle (US), Microsoft (US), Workday (US), Zoom Video Communication (US), Culture AMP (Germany), Achievers (Canada), Workleap (Canada), SurveySparrow (US), 15Five (US), Awardco (US), Vantage Circle (US), Quantum Workplace (US), ClearCompany (US), Jostle (Canada), Kudos (Canada), Lattice (US), Bonusly (US), Motivosity (US), WorkTango (US), Blink (US), MO (UK), and Pixida (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the employee experience management market.
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- Easy to Download Historical Data & Forecast Numbers
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- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Report Metrics |
Details |
Market size available for years |
2018-2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) Million/Billion |
Segments Covered |
By Offering (software and services), Industry and Region |
Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
The major players in the employee experience management market are Qualtrics (US), SAP (Germany), Oracle (US), Microsoft (US), Workday (US), Zoom Video Communication (US), Culture AMP (Germany), Achievers (Canada), Workleap (Canada), SurveySparrow (US), 15Five (US), Awardco (US), Vantage Circle (US), Quantum Workplace (US), ClearCompany (US), Jostle (Canada), Kudos (Canada), Lattice (US), Bonusly (US), Motivosity (US), WorkTango (US), Blink (US), MO (UK), and Pixida (US). |
This research report categorizes the employee experience management market to forecast revenues and analyze trends in each of the following submarkets:
Based on Component:
-
Software
- Integrated Software
-
Standalone Software
- Employee Survey & Feedback
- Employee Engagement
- Employee Recognition & Rewards
- Employee Performance Management
- Other Software
-
Services
- Implementation & Integration
- Support & Maintenance
- Training & Development
Based on Industry:
- BFSI
- Healthcare
- IT & ITeS
- Telecom
- Government
- Manufacturing
- Other Industries
By Region:
-
North America
- United States (US)
- Canada
-
Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Spain
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Australia & New Zealand
- Rest of Asia Pacific
-
Middle East and Africa
-
GCC Countries
- UAE
- KSA
- Rest of GCC Countries
- South Africa
- Rest of the Middle East & Africa
-
GCC Countries
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In December 2023, Workleap acquired Pingboard, a US-based HR tech SaaS company. This acquisition adds new capabilities to the company’s family of software products, in line with Workleap’s vision of building a best-in-class ecosystem of workplace tools.
- In October 2023, Qualtrics partnered with WorkJam, the world’s leading digital frontline workplace. The partnership will improve the frontline employees’ experience to enhance the customer experience. Qualtrics’ conversational intelligence technology will combine with WorkJam’s super app for frontline workers to give organizations a continuous pulse on the front lines of their businesses and surface insights into employees’ priorities, needs, and concerns.
- In June 2023, SAP completed the sale of its stake in Qualtrics as Silver Lake and CPP Investments completed Qualtrics’ acquisition.
- In April 2023, Zoom announced the acquisition of Workvivo to continue expanding its collaboration platform for a digital-first workplace. This acquisition is expected to close in the first quarter of the fiscal year 2024 and will add Workvivo’s employee experience platform to Zoom’s offerings.
Frequently Asked Questions (FAQ):
What is employee experience management?
Employee experience management is a holistic approach that encompasses the entire journey of an employee within an organization, focusing on creating a positive and fulfilling work environment. It involves strategic initiatives to enhance every aspect of the employee's interaction with the company, from recruitment and onboarding to daily work experiences and professional development. Employee experience management prioritizes well-being, job satisfaction, and engagement by considering workplace culture, leadership, communication, and growth opportunities.
What is the market size of the employee experience management market?
The employee experience management market size is projected to grow from USD 6.8 billion in 2023 to USD 11.1 billion by 2028 at a CAGR of 10.2% during the forecast period.
What are the major drivers in the employee experience management market?
The major drivers in the employee experience management market include escalating demand for real-time performance management and enhancing employee experience through seamless technology integration.
Who are the key players operating in the employee experience management market?
The key vendors operating in the employee experience management market include Qualtrics (US), SAP (Germany), Oracle (US), Microsoft (US), Workday (US), Zoom Video Communication (US), Culture AMP (Germany), Achievers (Canada), Workleap (Canada), SurveySparrow (US), 15Five (US), Awardco (US), Vantage Circle (US), Quantum Workplace (US), ClearCompany (US), Jostle (Canada), Kudos (Canada), Lattice (US), Bonusly (US), Motivosity (US), WorkTango (US), Blink (US), MO (UK), and Pixida (US).
What are the opportunities for new market entrants in the employee experience management market?
New entrants entering the employee experience management market can seize opportunities by offering innovative solutions tailored to the rising demand for employee well-being and engagement. There's room for differentiation through technologically advanced tools, niche offerings, and the integration of AI and data analytics. Tailoring solutions to support remote work and hybrid models is also an essential avenue for new entrants to contribute to the evolving dynamics of the modern workplace. Understanding and addressing these trends strategically allows for a valuable and impactful entry into the dynamic employee experience management sector. .
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The research study involved four major activities in estimating the employee experience management market size. Exhaustive secondary research has been done to collect important information about the market and peer markets. The next step has been to validate these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
The market size of the companies offering employee experience management to various end users was arrived at based on the secondary data available through paid and unpaid sources and by analyzing the product portfolios of major companies in the ecosystem and rating the companies based on their performance and quality. In the secondary research process, various sources were referred to identify and collect information for the study. The secondary sources included annual reports of Microsoft, press releases of multiple companies, such as Oracle, SAP, and Qualtrics, and white papers, journals, and certified publications and articles from recognized authors, directories, and databases, such as the IMF and the US Bureau of Labor Statistics.
Secondary research was used to obtain critical information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from market- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the employee experience management market.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from software and services, market breakups, market size estimations, market forecasts, and data triangulation. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Finance Officers (CFOs), Chief Strategy Officers (CSOs), and the installation team of end users who use employee experience management, were interviewed to understand buyers’ perspectives on suppliers, products, service providers, and their current usage of employee experience management, which is expected to affect the overall employee experience management market growth.
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Market Size Estimation
In the market engineering process, the top-down and bottom-up approaches were used along with multiple data triangulation methods to estimate and validate the size of the employee experience management market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Initially, MarketsandMarkets focuses on top-line investments and spending in the ecosystems. Further, significant developments in the critical market area have been considered.
- Tracking the recent and upcoming developments in the employee experience management market that include investments, R&D activities, product launches, collaborations, mergers and acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters.
- Conduct multiple discussions with key opinion leaders to know about diverse types of authentications and brand protection offerings used and the applications for which they are used to analyze the breakup of the scope of work carried out by major companies.
- Segmenting the market based on technology types concerning applications wherein the types are to be used and deriving the size of the global application market.
- Segmenting the overall market into various market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up approach
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Market Size Estimation Methodology-top-down approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the employee experience management market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides.
The employee experience management market size has been validated using top-down and bottom-up approaches.
Market Definition
Employee experience management (EXM) is a comprehensive solution that combines technology, tools, and services to enhance employee engagement, productivity, and retention, which can significantly impact an organization's profitability and efficiency. EXM involves shaping every employee interaction with a company, from the hiring process to onboarding and exit strategies. Both IT and HR departments play a critical role in implementing strategies that support optimal employee performance. Technology is a crucial enabler of a positive EXM strategy, and by selecting the right tools and integrating them seamlessly, organizations can create a data-driven, personalized, and continually evolving employee experience that fosters productivity, loyalty, and a thriving company culture.
Stakeholders
- Employee experience management software and service providers
- Value-added resellers (VARs)
- Research organizations
- Consulting firms
- Application service providers
- Cloud platform providers
- Investors and venture capitalists
- System integrators (SIs)
- Technology providers
- Suppliers, distributors, and contractors
- End users/Enterprise users
Report Objectives
- To determine and forecast the global employee experience management market by offering (software and services), industry, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect the market growth.
- To forecast the size of the market segments concerning five central regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East & Africa (MEA).
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market.
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further break-up of the Asia Pacific market into countries contributing 75% to the regional market size
- Further break-up of the North American market into countries contributing 75% to the regional market size
- Further break-up of the Latin American market into countries contributing 75% to the regional market size
- Further break-up of the Middle East African market into countries contributing 75% to the regional market size
- Further break-up of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Employee Experience Management Market