RedThread Research predicts significant growth for frontline technology solutions providers in the coming year, with 69% of vendors projecting more than 31% growth in 2024. This is despite a decline in venture capital investment for HR tech overall, which totaled less than $3.3 billion over the last four quarters.
RedThread Senior Analyst Heather Gilmartin Adams explains that frontline technology differs from other HR technologies because it focuses specifically on the needs of frontline workers, rather than enabling a set of behaviors. As a result, providers have created technology designed to empower these workers.
The study found that vendors are primarily focused on three core areas to support frontline workers: performance, learning and growth, and 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 many software solutions supported two of the above categories, very few products spanned all three. According to RedThread co-founder and principal analyst Dani Johnson, there are no standard capabilities being offered by everyone in this niche. Companies should carefully consider their goals before choosing a frontline tech solution.
In light of the evolving landscape of frontline technology solutions, RedThread recommends that companies closely monitor new developments in this niche and thoroughly evaluate their options before making a decision.