In the next year, frontline technology solutions providers are predicted to experience significant growth. This is according to a recent study from RedThread Research, which found that 69% of vendors projected more than 31% growth in 2024. Despite a decline in venture capital investment for HR tech overall, which totaled less than $3.3 billion over the last four quarters, frontline technology solutions have received considerable investment.
RedThread Senior Analyst Heather Gilmartin Adams explained that frontline technology differs from other HR technologies because it specifically caters to the needs of frontline workers. This focus has led providers to create technology designed to empower frontline workers. The study found that vendors are primarily focusing on three core areas to support frontline workers: enabling 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. Dani Johnson, co-founder and principal analyst at RedThread emphasized that there are no standard capabilities being offered by everyone in this niche. Companies should carefully consider their goals before choosing a frontline tech solution. RedThread recommends that companies closely monitor new developments in this niche and thoroughly evaluate their options before making a decision.
This article highlights the growing trend of frontline technology solutions providers experiencing significant growth in the coming year despite a decline in venture capital investment for HR tech overall. Frontline technology differs from other HR technologies as it specifically caters to the needs of frontline workers rather than enabling a set of behaviors. The study found that vendors are focusing on three core areas – enabling performance, fostering learning and growth, and promoting engagement and inclusion – to support frontline workers.
However, very few products span all three categories with most software solutions supporting two categories only. Companies should carefully consider their goals before choosing a frontline tech solution as there are no standard capabilities being offered by everyone in this niche.
Given the evolving landscape of frontline technology solutions providers