Robust Backing for Frontline Tech Investment Continues to Grow

Frontline technology solutions providers are expected to experience significant growth in 2024, with 69% of them projecting over 31% growth, according to a study from RedThread Research. Despite a decline in venture capital investment for HR tech overall, 46% of all vendors have received some form of investment since June 2022.

RedThread Senior Analyst Heather Gilmartin Adams explains that frontline technology is different from other HR technologies because it specifically focuses on empowering frontline workers. The study identifies three core areas that vendors are focusing on to support frontline workers: enabling performance, fostering learning and growth, and promoting engagement and inclusion.

Performance technologies include performance support, scheduling, task management, performance management, and pay & benefits. Learning & Growth technologies enable frontline workers to develop the skills needed for their roles and to advance in their careers. Engagement & Inclusion tools facilitate communication and collaboration, employee listening and feedback, and employee recognition.

While most software solutions support two of these categories, very few products cover all three. Dani Johnson, co-founder and principal analyst at RedThread recommends that companies carefully consider their goals before choosing a frontline tech solution and keep an eye on new developments in this niche to stay up to date with industry advancements.