Global Employee Experience Management Market Research Report: Forecast (2024-2030)

Market Definition

Employee Experience Management (EXM) refers to the process of designing, delivering, and continuously improving the interactions and experiences that employees have with their organization throughout the entire employee lifecycle. This encompasses all aspects of the employee's journey, including recruitment, onboarding, training, career development, performance management, compensation, benefits, work environment, and offboarding.

Market Insights & Analysis: Global Employee Experience Management Market (2024-30):

The Global Employee Experience Management Market size was valued at around USD 6.45 billion in 2023 & is estimated to grow at a CAGR of around 11% during the forecast period, i.e., 2024-30. The growth trajectory of the employee experience management industry is fueled by a rising focus on employee wellbeing, a shift to remote and hybrid working, digital transformation, etc. Over the years, companies have adopted customized learning journeys, adaptable perks, and acknowledgment initiatives for their staff and employees, which allure and retain devoted and driven employees, ultimately securing a competitive advantage. This has boosted the market growth of employee experience management.

The Global Employee Experience Management Market offers cutting-edge solutions that empower organizations to personalize their employee management platform to fulfill their specific workforce needs. This encompasses the personalization of surveys, feedback forms, and recognition programs, allowing organizations to tailor the software to their distinct culture and objectives. Organizations actively monitor and comprehend the levels of employee experience by utilizing surveys and feedback mechanisms. This approach enables them to pinpoint areas that require improvement, cultivate a positive workplace culture, and ultimately elevate both employee satisfaction and performance. Prioritizing employee experience has been confirmed by these surveys to have a direct correlation with both retention and productivity. For instance,

• In January 2024, Riverbed, a leader in Unified Observability, released findings from its 2023 Global Digital Employee Experience (DEX) survey, focusing on the energy and utilities sectors.

Furthermore, employee experience management plays a vital role in various industries, such as BFSI, healthcare, and manufacturing, as it establishes a conducive work environment that not only attracts highly skilled individuals but also guarantees long-term commitment and efficiency. Given the dynamic nature of the different sectors and their fast-paced operations, as well as the presence of strict regulatory frameworks, employee experience management strategies concentrate on diverse facets. To align with industry advancements, training, and development programs are structured to furnish employees with essential proficiencies. All these factors are anticipated to augment the market size & volume during the forecast period.

Global Employee Experience Management Market Driver:

Continuous Surge in the Demand for Real-Time Performance Management Driving Market Growth – Several organizations are increasingly recognizing the significance of embracing versatile and adaptable strategies to consistently assess, direct, and enhance employee performance. This transition deviates from conventional & sporadic performance evaluations and adopts continuous feedback cycles and instant acknowledgment with real-time performance management. This type of management is in line with the evolving work environment and fulfills the expectations of contemporary employees who desire timely feedback and acknowledgment.

Moreover, the rising digitalization of HR processes across different sectors has boosted the demand for employee experience management solutions that leverage technology. Through the utilization of technology and data analytics, employee experience management solutions empower organizations to efficiently track and address performance metrics, resulting in a workforce that is more engaged and productive. The growing need for real-time performance management within the wider framework of employee experience management signifies a strategic emphasis on establishing a work environment that is responsive, flexible, and supportive, fostering both individual and collective achievements, and is expected to attain a high revenue growth rate during the forecast year.

Global Employee Experience Management Market Opportunity:

Mitigate Burnout & Enhance Overall Well-Being to Present Lucrative Opportunities – The rising prevalence of burnout has positively impacted the demand for employee experience management as organizations recognize the urgent need to prioritize employee well-being and engagement. Recent research conducted by Slack has revealed a pressing concern regarding burnout among middle managers in the United States. The study found that a staggering 43% of middle managers are grappling with burnout, surpassing the rates observed in other employee cohorts. Furthermore, it is worth noting that women experience a burnout rate that is 32% higher than that of men. This creates the urgency to implement effective employee experience management measures to tackle this issue. For instance, in 2022, Harvard research showed that American businesses suffer a financial loss of up to USD 190 billion each year due to employee burnout.

In addition, Microsoft's Viva Insights, along with similar employee experience management tools, detect the signs of burnout, such as prolonged working hours. This enables companies to prioritize the implementation of holistic employee experience management strategies. As organizations become more aware of the detrimental effects of burnout on their financial performance, there is a rising demand for proactive employee experience management solutions that effectively address and improve the overall employee experience, thus boosting market development.

Global Employee Experience Management Market Challenge:

Data Privacy Concerns Impeding Market Growth – Over the years, employees’ data and its privacy have been the major concern of every organization, as companies persist in collecting and evaluating employees' information to boost the general employee experience. This often leads to concerns relating to possible employee data privacy violations. Thus, the Global Employee Experience Management Market is anticipated to face hindrances in its degree of expansion during the forecast period.

Concerns about potential legal ramifications generate resistance from companies cautious of potential liabilities, as well as from employees who have concerns about infringing upon their privacy and rights. Striking a balance between extracting valuable insights from employee data and ensuring strict adherence to privacy regulations presents a significant challenge for Employee Experience Management providers. This challenge underscores the need for innovative solutions that can navigate regulatory complexities while still delivering meaningful improvements to the employee experience.

Global Employee Experience Management Market Trend:

Growing Emphasis on Diversity, Equity, and Inclusion (DEI) – Organizations focus on variety and equity together with incorporation campaigns to produce a much more comprehensive and fair work environment. Employee Experience Management strategies include functions to track DEI metrics, advertise a variety of understandings, and cultivate a culture of incorporation. This has become the key trend for global market expansion. Organizations are progressively holding leaders as well as supervisors accountable for promoting DEI campaigns, along with developing an alternative job setting. Employee experience management options consist of attributes that allow leaders to establish DEI objectives, track progression as well, and obtain comments from employees on their initiatives to advertise variety together with incorporation within their groups.

Over the historical years, companies have progressively acknowledged the crucial relevance of Diversity, Equity, and Inclusion (DEI) campaigns in promoting a work environment that values every person and harnesses the power of variety for technology and success. DEI-focused worker experience administration options integrate attributes developed to increase understanding regarding a variety of problems as well as advertise understanding amongst employees. This consists of instructional sources, training components, and interactive workshops concentrated on subjects such as subconscious predisposition, social skills, and comprehensive management.

Global Employee Experience Management Market (2024-30): Segmentation Analysis

The Global Employee Experience Management Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-30 at global levels. According to the analysis, the market has been further classified as:

Based on Industry:

• BFSI
• Healthcare
• IT/ITes
• Telecom
• Government
• Manufacturing
• Others

The BFSI segment holds the largest share of the market, and during the forecast period, this sector is expected to witness the highest growth rate around the globe. The BFSI industry has been leading the way in digital transformation, utilizing technology to optimize operations, enhance productivity, and elevate the overall employee experience. Digital tools and platforms are frequently incorporated to enhance remote work, foster collaboration, and enable effective communication.

Moreover, creating a favorable work environment is an essential element of effectively managing employee experience in the BFSI sector. This encompasses efforts to improve the equilibrium between work and personal life, provide assistance for mental well-being, and acknowledge accomplishments. Given the paramount importance of trust and integrity in the financial services sector, organizations in the BFSI industry frequently allocate resources towards establishing a work environment that is both transparent and ethical, thus boosting the Global Employee Experience Management Market in the coming years.

Based on Offerings:

• Software
  • Integrated Software
  • Standalone Software
    • Employee Survey & Feedback
    • Employee Engagement
    • Employee Recognition & Rewards
    • Employee Performance Management
• Services
  • Integration & Implementation
  • Support & Maintenance
  • Training & Development

During the forecast period, the employee engagement software is anticipated to maintain its position as the market leader in terms of market size. The concept of employee engagement revolves around the degree of emotional allegiance and active engagement demonstrated by employees towards their work, the organization they are a part of, and the goals they strive to accomplish. A highly committed workforce is distinguished by employees who possess a strong sense of purpose and enthusiasm toward their roles while also demonstrating a strong alignment with the organization's values and mission.

Furthermore, multiple elements contribute to the engagement of employees, such as efficient communication, encouraging leadership, chances for professional growth, and a favorable working atmosphere. Engaged employees have a higher probability of being productive, creative, and dedicated to the organization's long-term prosperity.

Global Employee Experience Management Market (2024-30): Regional Projections

Geographically, the Global Employee Experience Management Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

The biggest revenue share in the Global Employee Experience Management Market is held by North America. To enhance employee satisfaction and productivity, businesses within this area are adopting EXM solutions that offer strong features including analytics, automation, and personalized experiences aimed at optimizing engagement for employees. As more companies from North America acknowledge the correlation between positive workplace encounters and business prosperity, demand for EXM will increase, further shaping future workplace management efforts as well as promoting better staff welfare to boost the growth prospects of regional markets.

The United States and Canada, encompassing the North American region, are leading the way in shaping employee experience management. Both nations, possessing robust and enduring economies, have a substantial impact on propelling research and development (R&D) endeavors, thereby shaping advancements in the market for employee experience management.

Global Employee Experience Management Industry Recent Development:

• In 2023: Workleap has completed the acquisition of Pingboard, an HR tech SaaS company based in the United States. This strategic move enables Workleap to enhance its range of software products, aligning with its overarching goal of creating a top-notch ecosystem of workplace tools.
• In 2023: Qualtrics and WorkJam, the leading global digital frontline workplace, partnered to improve the satisfaction of frontline employees and ultimately enhance customer satisfaction. By integrating Qualtrics' conversational intelligence technology with WorkJam's super app for frontline workers, organizations will gain real-time insights into their businesses' front lines, enabling them to identify and address employees' priorities, needs, and concerns effectively.

Gain a Competitive Edge with Our Global Employee Experience Management Market Report

1. Global Employee Experience Management Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Employee Experience Management Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.