Frontline technology solutions providers are projected to experience significant growth in the upcoming year, with 69% forecasting more than 31% growth in 2024, according to a study by RedThread Research. Furthermore, 46% of all vendors have received some form of investment since June 2022. 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.
Heather Gilmartin Adams, Senior Analyst at RedThread, highlighted that frontline technology differs from other HR technologies in that it focuses on meeting the specific needs of frontline workers rather than allowing for a set of behaviors. Providers have therefore developed technology aimed at empowering frontline workers.
The research found that vendors are primarily concentrating on three core areas to support frontline workers: performance enhancement, fostering learning and development, 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, only a few products covered all three. Additionally, no single capability was offered by all providers. Dani Johnson, co-founder and principal analyst at RedThread emphasized that companies should carefully evaluate their goals before choosing a frontline tech solution since there are no standard capabilities being offered by everyone in this niche.
Given the rapidly evolving landscape of frontline technology solutions, RedThread advises companies to closely monitor new developments in this field and thoroughly assess their options before making a decision.