Frontline technology solutions providers are projected to experience significant growth in the upcoming year, with 69% of them anticipating more than 31% growth in 2024, according to a study by RedThread Research. This is particularly noteworthy given that venture capital investment for HR tech overall has been on a decline, totaling less than $3.3 billion over the last four quarters.
RedThread Senior Analyst Heather Gilmartin Adams highlighted that frontline technology differs from other HR technologies in its focus on catering to the specific needs of frontline workers rather than enabling a set of behaviors. This emphasis has led providers to develop technology designed to empower frontline workers.
The research found that vendors are concentrating on three key areas to support frontline workers: enhancing performance, fostering learning and growth, and promoting engagement and inclusion. These areas encompass technologies such as performance support, scheduling, task management, performance management, learning and development tools, and employee engagement and collaboration platforms.
While many software solutions supported two of these categories, very few products spanned all three, and no one capability was offered by all providers. Dani Johnson, co-founder and principal analyst at RedThread emphasized that there are no standard capabilities being offered by everyone and that companies should carefully consider their goals before selecting a frontline tech solution.
Given the rapidly evolving landscape of frontline technology solutions, RedThread advises companies to closely monitor new developments in this niche and thoroughly evaluate their options before making a decision.