According to a recent study by RedThread Research, frontline technology solutions providers are projected to experience significant growth in the coming year, with 69% of all vendors forecasting 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 providers have received significant investment since June 2022.
RedThread Senior Analyst Heather Gilmartin Adams explained that frontline technology differs from other HR technologies in its focus on catering specifically 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 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.
Despite the majority of software solutions supporting two of the above categories, very few products span all three capabilities. Dani Johnson, co-founder and principal analyst at RedThread emphasized 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.