In the coming year, frontline technology solutions providers are projected to experience significant growth, with 69% of all vendors anticipating more than 31% growth in 2024, according to a study from RedThread Research. This is particularly noteworthy given the 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 explained that frontline technology differs from other HR technologies in that it specifically caters to the needs of frontline workers, rather than enabling a set of behaviors. This focus has led providers to create technology designed to empower frontline workers.
The study found that vendors are primarily concentrating on three core 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 a majority of software solutions supported two of the above categories, very few products span all three, and no one capability was offered by all providers. RedThread co-founder and principal analyst Dani Johnson highlighted that there are no standard capabilities being offered by everyone and that companies should carefully consider their goals before choosing a frontline tech solution.
Given 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.