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 vendors projecting more than 31% growth in 2024. This is despite a decline in venture capital investment for HR tech overall, which totaled less than $3.3 billion over the last four quarters.
What sets frontline technology apart from other HR technologies is its focus on the specific needs of frontline workers, rather than enabling a set of behaviors. This has led providers to create technology designed to empower these workers. The study found that vendors are primarily focusing on three core areas to support frontline workers: performance management, learning and growth, and engagement and inclusion. These areas encompass technologies such as performance support, scheduling, task management, learning and development tools, and employee engagement and collaboration platforms.
However, very few products span all three categories, and no one capability was offered by all providers. 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 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.