The frontline technology solutions market is expected to experience significant growth in the coming year, with 69% of vendors projecting more than 31% growth in 2024, according to a study by RedThread Research. 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 solutions providers have received some form of investment since June 2022.
What sets frontline technology apart from other HR technologies is its focus on catering to the specific needs of frontline workers rather than enabling a set of behaviors. This has led providers to create technology designed to empower frontline workers. According to RedThread Senior Analyst Heather Gilmartin Adams, there are three core areas that vendors are primarily focusing on 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.
However, a majority of software solutions only supported two of these categories, with very few products spanning all three. RedThread co-founder and principal analyst Dani Johnson emphasized that companies should carefully consider their goals before choosing a frontline tech solution as there are no standard capabilities being offered by everyone. Therefore, it’s important for companies to closely monitor new developments in this niche and thoroughly evaluate their options before making a decision.
Overall, RedThread recommends that companies keep an eye on the evolving landscape of frontline technology solutions and take the time to choose the right solution based on their specific needs and goals.