Employee Recognition System Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Employee Recognition System Market Size valued for USD 11.1 Billion in 2021 and is projected to occupy a market size of USD 34.1 Billion by 2030 growing at a CAGR of 13.4% from 2022 to 2030.

An employee recognition system, also known as employee recognition software, is a platform that enables businesses to recognize and reward employees in a structured manner. Employee recognition software typically offers peer recognition and reward options through a portal that supervises the delivery of points, gifts, gift cards, recognition messages, digital badges, or certificates. Employee recognition motivates employees to perform better in the coming quarters by not only rewarding them with rewards or money. Companies can indirectly expand their operations in this manner. According to a recent study, businesses that use efficient employee recognition software are 12 times more likely to have positive business outcomes. According to a recent study, 76% of employees who do not feel appreciated look for other employment options.

Employee Recognition System Market Report Statistics

• Global employee recognition system market revenue is projected to reach USD 34.1 Billion by 2030 with a CAGR of 13.4% from 2022 to 2030
• A survey found that more than half of employees want more appreciation from their immediate manager
• Similarly the research says, 41% want more recognition from their immediate fellow employees
• According to a recent study, 69% of employees work harder when they are properly recognized
• North America employee recognition system market share gathered more than USD 3.7 billion in 2021
• Asia-Pacific employee recognition system market growth will record more than 15% CAGR from 2022 to 2030
• Based on type, the on-premises insurance sub-segment achieved 55% shares in 2021
• Among industry vertical, the retail & consumer goods sub-segment occupied around 35% of shares in 2021
• Growing demand for cloud-based employee engagement programs is a prominent employee recognition system market trend that drives the industry demand

Global Employee Recognition System Market Dynamics

Market Drivers

• Growing digitization in workplace Enterprise Size
• Rising awareness about employee recognition
• Increasing productivity through employee recognition platforms

Market Restraints

• Lack of overall employee participation
• Low availability of secured social networking platforms

Market Opportunities

• Increased integration of advanced technologies
• Rapid demand for Cloud-Based-based solutions among enterprises

Employee Recognition System Market Report Coverage

Employee Recognition System Market Growth Factors

Growing number of employee resignations due to lack of recognition is a very prominent factor that is creating demand for employee recognition system among organizations. Social employee recognition can boost motivation in employees which drives the industry growth. Recognizing and rewarding employee performance will increase motivation and help employees stay on track and keep a positive attitude. These programmes promote collaboration and provide employees with a goal to strive for. When they are rewarded for performing a task right, they are more likely to do it again and again.

Employee recognition system market growth is also fueled by increased employee productivity. Employees are more productive at work when their accomplishments are acknowledged, either verbally or with a monetary reward. Teams of workers who are attempting to achieve goals are more productive because they become more efficient with their resources and energy in order to achieve those goals and see actual results.

Increased use of social media platforms such as LinkedIn and Twitter also contributes to market growth. This rapid expansion can be attributed to the use of these platforms to differentiate employee efforts and engage them in advertising, promotional, and marketing initiatives. Increased adoption of the BYOD ethos has the potential to lead to significant growth. Although it is still in its initial stages in small businesses, many large corporations have begun to embrace the culture of bringing your own device. This trend offers market participants a significant opportunity to expand their market position.

Employee Recognition System Market Segmentation

The global social employee recognition systems market is segmented based on deployment, enterprise size, industry, and geography.

Employee Recognition System Market By Deployment

• Cloud-Based
• On-Premises

According to our employee recognition system industry analysis, cloud-based deployment is expected to grow with fastest CAGR during the projected timeframe of 2022 to 2030. Cloud-based tools enable organizations or individuals to gain access to their business applications at any time and from any location. Furthermore, the ability of cloud-based services to reduce operational costs along with its cap potential to boost the number of people who can participate in a specific application is driving the overall growth of the cloud-based employee recognition software market.

Employee Recognition System Market By Enterprise Size

• Large Enterprise
• SMEs

According to enterprise size forecasts, the large enterprise sub-segment will account for a sizable share in 2021 and will continue to do so in the following years. Large enterprises typically employ 1000+ people, making it impossible to assess their performance manually. As a result, large corporations implement employee recognition software to facilitate and improve employee appreciation. SMEs, on the other hand, are likely to gain significant impetus over the estimated period. The segment's rapid growth can be attributed to the increasing number of SMEs and their strategies for competing with large enterprises.

Employee Recognition System Market By Industry

• Retail & Consumer Goods
• IT & Telecom
• Healthcare
• Media & Entertainment
• Travel & Hospitality
• Manufacturing
• Others

According to our for social employee recognition systems market forecast, the retail and consumer goods sector will hold a significant market share between 2022 and 2030. The highest share of retail and consumer goods is due to increased investment in advanced technologies in the retail sector to enhance operational efficiency and customer satisfaction in order to retain customers. IT and telecom accounted for the second largest share, owing to the presence of a large number of employees worldwide and a higher level of employee appreciation in the sector.

Employee Recognition System Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Employee Recognition System Market Regional Analysis

North America currently dominates the global employee recognition software market geographically, owing to technological advancements and a huge proportion of contract positions in the region. Growing awareness of employee welfare and recognition, as well as a greater realization of the significance of worker morale in overall productivity, are predicted to drive demand in the region for employee recognition software.

On the other hand, Asia-Pacific region is likely to attain fastest growth rate in the coming years from 2022 to 2030. As new employee recognition software and systems are released, adoption of social employee recognition systems is expected to rise steadily in East Asia, South Asia, and the Pacific.

Employee Recognition Software Market Players

Some of the leading employee recognition system companies include Achievers Corp., BI WORLDWIDE EMEA, CorporateRewards, Globoforce, Incentive Logic Kudos, Inc., Paramax, Peoplecart, REFFIND Ltd., Terryberry, and Ultimate Software.