EXM platforms help employers retain and attract employees by addressing the pain points in the employee life cycle; current Everest Group PEAK Matrix Leaders include Qualtrics and Medallia.
DALLAS, November 18, 2022 — Even with global economic headwinds, enterprises remain desperate to retain employees and recruit new talent. It is against this backdrop that the Employee Experience Management (EXM) platforms market is expected to experience a compound annual growth rate of 35-50% through 2025, according to Everest Group. EXM buyers of all sizes cite the rise of new and alternative working models, keeping attrition rates under control, and understanding real-time employee sentiments as major triggers for adopting EXM platforms.
The Great Resignation, the demand for hybrid work environments, and the shortage of talent have disrupted the conventional way of work and the traditional workplace. For enterprises facing this challenge, the ability to monitor and improve employee experience along each step of the employee lifecycle has become more crucial than ever before. The adoption of Employee Experience Management (EXM) platforms can make this task easier.
According to Everest Group research, buyers of EXM platforms cite the following as the top five benefits of the technology:
- Better understanding of the workforce, especially the key challenges that each employee faces and understanding their sentiments
- Inclusion of employees in formulating the organization’s people strategy. Particularly helpful is employee feedback gathered in pulse surveys on specific topics.
- Improved employee engagement and productivity. The ability to anonymize feedback makes employees feel heard and empowered, thus stimulating higher productivity and increased rate of participating in future surveys.
- Reduction in attrition, primarily by playing a role in elevating employee satisfaction, engagement and visibility.
- Faster decision making. EXM platforms capture and process employee insights into real-time dashboards, giving leaders the right information at the right place and time.
These findings and more are detailed in Everest Group’s “Employee Experience Management (EXM) Platforms – State of the Market Report 2023.” The report provides an introduction to EXM platforms and a market overview, including buyer adoption trends, key investment themes, the service provider landscape and the outlook for 2023.
“Enterprises are realizing that EXM is an important element of their overall business growth strategy, not just one of many tasks assigned to the Human Resources team,” said Lokesh Goyal, practice director at Everest Group. “To win the talent war, enterprises need to revamp their employee listening programs and be acutely attuned to employee needs such as mental health, well-being, safety, flexibility, and work-life balance and this should be a continuous process rather than being limited to annual surveys. The EXM platforms market is surging because this technology provides employers with a way to support multiple channels of capturing real-time feedback from their total talent pool and making decisions that improve experience, culture and productivity.”
Additional market highlights
- The Banking, Financial Services and Insurance (BFSI) industry has the highest market share of adoption (16%), followed by the hi-tech industry (15%).
- EXM platforms are largely adopted by midsize (45-50%) and large buyers (35-40%) as most of them have already embarked on their HR transformation journey and capturing employee feedback is a critical aspect of it.
- In 2021, North America constitutes the largest market share (68%) and the majority of the current supply base is consolidated in the North American region as well.
- Qualtrics and Medallia rank as Everest Group PEAK Matrix® Leaders for 2022.
- Current market leaders (in terms of market share by number of EXM clients in 2021) include Qualtrics, Culture Amp, InMoment, Perceptyx and Workday.
- The top five reasons cited by buyers for choosing a particular provider are: flexibility in pricing; value-added services; ease of use, implementation and integration; differentiated platform functionalities; and responsiveness and customer support.
About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.