Employee Engagement Software

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What is it?

Employee Engagement platform lets companies make employees more effective and keep them happy by:

• managing performance of employees,

• setting and tracking employees goals/OKRs,

• seeing if employees are happy with surveys,

• gathering feedback on what to improve,

• managing compensation based on performance with bonuses etc.

Before investing in one of these tools, companies usually don’t have a formalized process or they're using a spreadsheet with Zapier.

Who’s the buyer?

Usually, the buyer is HR leadership - but often personas include employee experience/engagement or talent development.

13% of buyers are in the SMB segment, 50% in the mid-market, and 37% in the enterprise market.

What is the problem?

For fast-growing companies, it’s costly and time-consuming to hire new employees. The problem that these tools are solving is making sure your employees are happy and performing at the highest level possible.

The ROI for these tools is the ability to get more out of workers and not have to hire more to do the same job while keeping everyone happy and well compensated.

How big is the market?

The top 10 players bring about $480M in ARR. The combined annual revenue of all players in the market is north of $2.5B.

How fast is it growing?

In the past 3 years, the market has grown 82% with an average of 22% YoY growth.

Who are the top 10 players?

Revenue numbers are estimated. We usually are able to find one of the top players mentioning numbers of customers in a recent funding event. This way we can estimate their and other players' revenues.

How much are people paying?

The pricing model is usually per employee basis. Ranging from $2/mo/user up to $19/mo/user (billed annually).

The plans’ structure is usually split into modulus or products that solve specific problems: feedback gathering, recognition, compensation, and goal setting.

The average price per user is about $9/mo and that number has grown 21% since 2019.

How are they buying?

Since it requires a company effort to roll out the whole platform to all employees, it usually includes scheduling a demo. No top players are offering a free trial.

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