Frontline technology solutions providers are projected to experience significant growth in the upcoming year, with 69% of them anticipating more than 31% growth in 2024, according to a research study from RedThread. This growth comes despite a decline in venture capital investment for HR tech overall, which totaled less than $3.3 billion over the past four quarters.
RedThread Senior Analyst Heather Gilmartin Adams pointed out that frontline technology is distinct from other HR technologies in that it caters specifically to the needs of frontline workers rather than facilitating a set of behaviors. As a result, providers have created technology designed to empower frontline workers.
According to the study, vendors are focusing on three primary areas to support frontline workers: enabling 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. RedThread co-founder and principal analyst Dani Johnson 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 rapidly 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.