Social Employee Recognition System Market Size, Trends and Growth Analysis by 2027

The market for social employee recognition systems is projected to grow significantly, reaching approximately US$ 14,648.5 million by 2028, up from US$ 5,828.9 million in 2021. This growth represents a compound annual growth rate (CAGR) of 14.1% from 2021 to 2028.

This market can be divided into several regions, including North America, Europe, Asia Pacific (APAC), Middle East and Africa, and South and Central America. A notable trend contributing to the expansion of the social employee recognition sector is the increasing involvement of senior management in recognition initiatives. This engagement from top executives has proven to be a vital factor in fostering growth within various organizations. By participating in recognition programs, senior leaders can effectively acknowledge and reward the contributions of employees and teams, which can be facilitated through app-based solutions that allow for remote participation.

These social recognition systems not only enable management to recognize employee efforts but also promote informal interactions among team members and their supervisors, ultimately enhancing overall productivity. The rise of workplace social networks and online communities is also a driving force behind the growth of this market, as employees increasingly turn to social media platforms and applications for collaboration and support.

As a result, the demand for social employee recognition systems is anticipated to increase in the upcoming years. The retail and consumer goods sectors, along with the IT and telecom industries, are particularly notable for their substantial budgets and the prevalence of large organizations, leading to a higher implementation rate of these systems. However, since social employee recognition systems are viewed as supplementary rather than essential, their adoption may be somewhat restrained during the forecast period.

The segmentation of the social employee recognition system market is based on various criteria, including component, deployment model, reward type, industry, and geography. In terms of components, the market is divided into platforms and services. The deployment model is categorized into cloud and on-premise solutions. Regarding reward types, the market includes gift cards, prepaid cards, incentive travel, and other forms of rewards. The industry segmentation encompasses retail, IT & telecom, healthcare, media & entertainment, travel and hospitality, manufacturing, and additional sectors.

Another emerging trend is the adoption of bring your own device (BYOD) policies within organizations. With the increasing accessibility of social networking platforms like Yammer, Convo, and LinkedIn, many companies are expected to expand their BYOD policies to accommodate a growing workforce. The rise in smartphone and internet usage is also significantly influencing the uptake of employee recognition systems. For example, in March 2018, Salesforce Inc. launched a new software called "Essentials" aimed at small businesses, designed to enhance employee satisfaction through improved customer service and sales functionalities. Such innovations are likely to boost both performance and productivity within organizations.

Key players in the global social employee recognition system market include Achievers Solutions Inc, Appreiz Inc, BI Worldwide, Globoforce Limited (Workhuman), Kudos Inc., PossibleWorks, Terrberry, Semos Cloud, Neptar HR, and Wooboard Technologies Ltd. These companies are at the forefront of developing and implementing innovative solutions that cater to the evolving needs of employee recognition in the workplace.