In the upcoming year, frontline technology solutions providers are expected to witness significant growth, with 69% projecting an increase of more than 31% in 2024, according to a study by RedThread Research. Despite a decline in venture capital investment for HR tech overall, which amounted to less than $3.3 billion over the past four quarters, 46% of all vendors have received some form of investment since June 2022.
RedThread Senior Analyst Heather Gilmartin Adams emphasized that frontline technology differs from other HR technologies in that it specifically addresses the needs of frontline workers rather than enabling a set of behaviors. As a result, providers have developed technology designed to empower frontline workers.
The study revealed that vendors are primarily focusing on three core areas to support frontline workers: enhancing performance, fostering learning and growth, and promoting engagement and inclusion. Technologies such as performance support, scheduling, task management, performance management, learning and development tools, and employee engagement and collaboration platforms fall under these categories.
While most software solutions supported two of these categories, very few products encompass all three capabilities. Dani Johnson, co-founder and principal analyst at RedThread Research highlighted that there are no standard capabilities being offered by everyone and advised companies to carefully consider their goals before selecting a frontline tech solution.
Given the evolving landscape of frontline technology solutions, RedThread recommended that companies closely monitor new developments in this niche and thoroughly evaluate their options before making a decision.