Employee Onboarding Software Market Overview
As per MRFR analysis, the Employee Onboarding Software Market Size was estimated at 13.15 (USD Billion) in 2022.The Employee Onboarding Software Market Industry is expected to grow from 14.36(USD Billion) in 2023 to 31.7 (USD Billion) by 2032. The Employee Onboarding Software Market CAGR (growth rate) is expected to be around 9.2% during the forecast period (2024 - 2032).
Key Employee Onboarding Software Market Trends Highlighted
The field of employee onboarding software is constantly changing and improving as companies try to enhance the experience of employees and automate onboarding protocols. The trend that can be noted is the move to digitization and mobile-first approach to onboarding which increases ease of access to the employees.
Major things that drive the market include increased number of people that work remotely, compliance and regulatory requirements and improvement in retention rates. Organizations are looking for bespoke onboarding solutions like customized education, social engagement tools, and surveys.
Further expansion in the employee onboarding software market can be found in AI together with automation that helps in better efficiency and scalability. AI-empowered solutions can complete activities, generate recommendations, and review data to locate ideal opportunities. Also, attention of the market is indeed shifting towards the products aimed at the wider audience including multilingual and accessible ones.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Employee Onboarding Software Market Drivers
Increased Demand for Streamlined Onboarding Processes
The Employee Onboarding Software Market is experiencing a surge in demand due to the growing need for organizations to streamline and enhance their onboarding processes. Traditional onboarding methods, often manual and paper-based, have proven inefficient and time-consuming, leading to a lack of employee engagement and productivity. Employee onboarding software provides a centralized and automated platform that streamlines the onboarding process, reducing paperwork, automating tasks, and providing a consistent onboarding experience for new hires.
This helps organizations save time and resources while ensuring that new employees are effectively integrated into the company culture and equipped with the necessary knowledge and skills to succeed in their roles. The increasing adoption of employee onboarding software is driven by the growing awareness of its benefits, including improved employee satisfaction, reduced turnover rates, and enhanced organizational efficiency. The Employee Onboarding Software Market Industry is projected to grow significantly in the coming years, as more and more organizations recognize the importance of effective onboarding for employee success and organizational growth.
Rise of Remote and Hybrid Work Models
The shift towards remote and hybrid work models has accelerated the demand for employee onboarding software. With employees working from different locations and time zones, organizations need a solution that enables them to onboard new hires effectively and efficiently. Employee onboarding software provides the flexibility and accessibility required for remote onboarding, allowing organizations to deliver a seamless onboarding experience regardless of the employee's location.It offers features such as virtual onboarding sessions, online document sharing, and remote collaboration tools, ensuring that new hires feel connected and engaged from day one.
The rise of remote and hybrid work models is expected to continue driving the growth of the Employee Onboarding Software Market Industry, as organizations seek innovative solutions to onboard and integrate employees effectively in a decentralized work environment.
Growing Focus on Employee Experience and Engagement
Organizations are increasingly recognizing the importance of employee experience and engagement for overall business success. Employee onboarding is a critical touchpoint in the employee lifecycle, and a positive onboarding experience can significantly impact employee satisfaction and retention. Employee onboarding software plays a vital role in enhancing employee experience by providing a personalized and engaging onboarding journey.
It offers features such as interactive onboarding modules, gamification elements, and feedback mechanisms, which help create a memorable and engaging onboarding experience for new hires.By focusing on employee experience and engagement, organizations can improve employee morale, boost productivity, and create a more positive and inclusive work environment. This growing focus on employee experience and engagement is expected to drive the adoption of employee onboarding software in the Employee Onboarding Software Market Industry.
Employee Onboarding Software Market Segment Insights
Employee Onboarding Software Market Deployment Type Insights
The Employee Onboarding Software Market segmentation based on deployment type can be broadly divided into cloud-based and on-premises solutions. Cloud-based deployment has gained significant traction in recent years due to its numerous advantages, such as cost-effectiveness, flexibility, and scalability. The Employee Onboarding Software Market revenue for the cloud-based segment is projected to grow at a CAGR of 10.5% during the forecast period, reaching a value of USD 18.5 billion by 2026.
The growing adoption of cloud-based solutions is attributed to the increasing demand for remote work and the need for seamless employee onboarding processes.On the other hand, on-premises deployment offers greater control and security over data, making it suitable for organizations with stringent compliance requirements. The Employee Onboarding Software Market revenue for the on-premises segment is estimated to reach USD 12.2 billion by 2026, with a CAGR of 7.2%. However, the growth of this segment is expected to be slower compared to cloud-based solutions due to the higher upfront investment and maintenance costs associated with on-premises deployment.
The choice between cloud-based and on-premises deployment depends on various factors, including the size of the organization, industry, budget, and IT infrastructure.Cloud-based solutions are ideal for small and medium-sized businesses that lack the resources to invest in on-premises infrastructure. On the other hand, large enterprises with complex IT systems and stringent security requirements may prefer on-premises deployment for greater control and customization.
Overall, the Employee Onboarding Software Market is experiencing strong growth, driven by the increasing demand for efficient and effective employee onboarding processes. The adoption of cloud-based solutions is expected to fuel market growth in the coming years, while on-premises solutions will continue to play a significant role for organizations with specific security and control requirements.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Employee Onboarding Software Market Organization Size Insights
The Employee Onboarding Software Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. SMEs held the largest market share in 2023, accounting for over 60% of the Employee Onboarding Software Market revenue. This dominance is attributed to the increasing adoption of cloud-based onboarding solutions by SMEs to streamline their onboarding processes and reduce costs. Large enterprises are also expected to witness significant growth in the coming years, owing to their growing focus on improving employee experience and retention.
Employee Onboarding Software Market Industry Insights
The Employee Onboarding Software Market is segmented into various industries, including Healthcare, Manufacturing, Information Technology, Financial Services, and Education. Each industry presents unique challenges and opportunities for employee onboarding software providers. In the Healthcare industry, the increasing adoption of digital health records and the need to streamline onboarding processes are driving the demand for employee onboarding software.
The market in this industry is expected to grow significantly in the coming years, with a projected valuation of USD 3.2 billion by 2024.In the Manufacturing industry, the need to improve operational efficiency and reduce onboarding costs is fueling the adoption of employee onboarding software. The market in this industry is expected to reach USD 2.8 billion by 2024. The Information Technology industry is another key segment for employee onboarding software. The rapid growth of the IT sector and the increasing number of remote workers are driving the demand for software that can streamline onboarding processes and improve employee engagement.
The market in this industry is expected to grow to USD 2.5 billion by 2024.The Financial Services industry is also witnessing a growing demand for employee onboarding software. The need to comply with regulatory requirements and the increasing focus on customer service are driving the adoption of software that can automate onboarding processes and improve compliance. The market in this industry is expected to reach USD 2.2 billion by 2024. In the Education industry, the need to improve student engagement and retention is driving the demand for employee onboarding software. The market in this industry is expected to grow to USD 1.8 billion by 2024.
Employee Onboarding Software Market Feature Insights
The Employee Onboarding Software Market segmentation by Feature includes Automated Workflows, Performance Tracking, Employee Self-Service, Social Collaboration, and Analytics and Reporting. Automated Workflows segment held the largest market share in 2023, and is projected to continue its dominance throughout the forecast period.
The Performance Tracking segment is also expected to grow significantly during the forecast period, due to the increasing need for organizations to track employee performance and identify areas for improvement. The Employee Self-Service segment is also expected to grow steadily during the forecast period, as more and more employees expect to be able to manage their own onboarding process.The Social Collaboration segment is also expected to grow during the forecast period, as organizations increasingly use social media and other collaborative tools to onboard new employees.
The Analytics and Reporting segment is also expected to grow during the forecast period, as organizations increasingly use data to improve their onboarding processes.
Employee Onboarding Software Market Service Insights
The Service segment is a crucial part of the Employee Onboarding Software Market, accounting for a significant share of the market revenue. It encompasses a range of services that cater to the implementation, training, support, and maintenance of employee onboarding software solutions. Implementation and Training services play a vital role in ensuring successful deployment and adoption of onboarding software. These services help organizations customize the software to their specific requirements, train employees on its usage, and provide ongoing support to ensure smooth implementation.
The implementation and training segment is expected to grow steadily, driven by the increasing demand for comprehensive onboarding solutions. Support and Maintenance services are essential for keeping onboarding software running smoothly and addressing any technical issues or updates. These services ensure that the software remains up-to-date and aligned with changing business needs.
The support and maintenance segment is projected to witness significant growth, owing to the growing emphasis on employee experience and the need for continuous software maintenance.Consulting services provide expert guidance and assistance to organizations in selecting, implementing, and optimizing their employee onboarding software. These services offer strategic advice, best practice recommendations, and tailored solutions to meet specific business objectives. The consulting segment is expected to grow at a steady pace, driven by the increasing demand for specialized expertise in onboarding software selection and implementation.
Employee Onboarding Software Market Regional Insights
The Employee Onboarding Software Market is segmented into North America, Europe, APAC, South America, and MEA based on region. North America held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The region's high adoption rate of advanced technologies, presence of leading vendors, and large number of enterprises are key factors driving growth. Europe is expected to be the second-largest market, followed by APAC.
APAC is projected to witness the highest growth rate during the forecast period due to rising demand from emerging economies such as India and China.This growth is attributed to the increasing need for efficient and streamlined employee onboarding processes, rising adoption of cloud-based solutions, and growing awareness of the benefits of employee onboarding software.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Employee Onboarding Software Market Key Players And Competitive Insights
Major players in Employee Onboarding Software Market industry are continuously developing innovative solutions to gain a competitive edge. Leading Employee Onboarding Software Market players are investing heavily in research and development to enhance the capabilities of their offerings. The Employee Onboarding Software Market development is being driven by the increasing adoption of cloud-based solutions, which offer greater flexibility and scalability.
The Competitive Landscape of the Employee Onboarding Software Market is expected to remain highly competitive in the coming years, with key players focusing on expanding their global presence and offering comprehensive solutions to meet the evolving needs of organizations. Partnerships and collaborations are also becoming increasingly common in the Employee Onboarding Software Market, as companies seek to leverage the expertise and resources of other organizations to enhance their offerings.
A leading competitor in the Employee Onboarding Software Market, SAP SuccessFactors, provides a comprehensive suite of solutions that enable organizations to streamline and automate their onboarding processes. SAP SuccessFactors' solutions are designed to improve the employee experience, reduce time-to-productivity, and enhance compliance. Another key player in the Employee Onboarding Software Market is Workday. Workday's solutions provide a unified platform for managing all aspects of the employee lifecycle, from recruiting to onboarding to performance management.
Workday's solutions are known for their user-friendly interface and robust reporting capabilities.Oracle is another major player in the Employee Onboarding Software Market. Oracle's solutions offer a range of features to support the entire onboarding process, from pre-boarding to post-boarding. Oracle's solutions are designed to integrate seamlessly with other Oracle applications, providing organizations with a complete view of their employees' data. These are just a few examples of the many competitors in the Employee Onboarding Software Market. As the market continues to grow, we can expect to see even more innovation and competition in the years to come.
Key Companies in the Employee Onboarding Software Market Include:
- Paylocity
- Gusto
- Checkr
- Greenhouse
- Workday
- HireRight
- Namely
- iCIMS
- ADP
- Rippling
- Oracle
- Zenefits
- SAP
- BambooHR
Employee Onboarding Software Market Industry Developments
The Employee Onboarding Software Market is anticipated to grow significantly over the next decade. The market is expected to be valued at USD 14.36 billion in 2023 and is projected to reach USD 31.7 billion by 2032, exhibiting a CAGR of 9.2% during the forecast period. The growth of the market is attributed to the increasing adoption of digital onboarding solutions by businesses of all sizes. Digital onboarding streamlines the onboarding process, improves employee satisfaction, and reduces costs.Recent developments in the market include the launch of new features and integrations by vendors.
For instance, in May 2023, SAP SuccessFactors launched a new onboarding module that provides a personalized and engaging experience for new hires. Additionally, vendors are forming partnerships with other HR software providers to offer integrated solutions. For example, in June 2023, Workday partnered with Microsoft to integrate its onboarding solution with Microsoft Teams. These developments are expected to further drive the growth of the market in the coming years.
Employee Onboarding Software Market Segmentation Insights
-
Employee Onboarding Software Market Deployment Type Outlook
-
Employee Onboarding Software Market Organization Size Outlook
- Small and Medium-Sized Enterprises (SMEs)
- Large Enterprises
-
Employee Onboarding Software Market Industry Outlook
- Healthcare
- Manufacturing
- Information Technology
- Financial Services
- Education
-
Employee Onboarding Software Market Feature Outlook
- Automated Workflows
- Performance Tracking
- Employee Self-Service
- Social Collaboration
- Analytics and Reporting
Employee Onboarding Software Market Service Outlook
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- Implementation and Training
- Support and Maintenance
- Consulting
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Employee Onboarding Software Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
13.15(USD Billion) |
| Market Size 2023 |
14.36(USD Billion) |
| Market Size 2032 |
31.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.2% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Paylocity, Gusto, Checkr, Greenhouse, Workday, HireRight, Namely, iCIMS, ADP, Rippling, Oracle, Zenefits, SAP, BambooHR. Â Â |
| Segments Covered |
Deployment Type, Organization Size, Industry, Feature, Service, Regional. Â Â |
| Key Market Opportunities |
1 Growing adoption of cloud-based onboarding solutions2 Rising demand for personalized onboarding experiences3 Integration with HR management systems HRMS4 Shift towards remote and hybrid work models5 Increased focus on employee engagement and retention |
| Key Market Dynamics |
Increasing adoption of cloudbased and mobile onboarding solutions Growing demand for personalized onboarding experiences Focus on improving employee engagement and retention. Integration with HRMS and other enterprise applications Adoption of AI and automation for streamlining onboarding processes |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Employee Onboarding Software Market size is expected to reach USD 31.7 billion by 2032, exhibiting a CAGR of 9.2% during the forecast period. The market growth is attributed to factors such as the increasing adoption of digital onboarding processes, the growing need for efficient and streamlined onboarding experiences, and the rising demand for employee engagement and retention solutions.
North America is expected to account for the largest market share in the Employee Onboarding Software Market. The region's dominance can be attributed to the presence of a large number of established vendors, early adoption of advanced technologies, and stringent regulatory compliance requirements.
The key growth drivers of the Employee Onboarding Software Market include Increasing adoption of digital onboarding processes, Growing need for efficient and streamlined onboarding experiences, Rising demand for employee engagement and retention solutions, Growing focus on employee experience and satisfaction, and Stringent regulatory compliance requirements.
Employee Onboarding Software finds applications in various industries, including IT and Telecom, BFSI, Healthcare, Manufacturing, Education, and Government. It helps organizations streamline and automate their onboarding processes, improve employee engagement, and enhance compliance.
The key competitors in the Employee Onboarding Software Market include SAP SuccessFactors, Oracle, IBM, Cornerstone OnDemand, Workday, BambooHR, Zenefits, Namely, ADP, and Gusto.
The key trends shaping the Employee Onboarding Software Market include Increasing adoption of cloud-based solutions, Growing emphasis on mobile onboarding, Integration with other HR systems, Use of artificial intelligence and machine learning, and Focus on employee experience and engagement.
The challenges faced by the Employee Onboarding Software Market include Data security and privacy concerns, Integration challenges, Lack of technical expertise, Resistance to change, and Budget constraints.
The opportunities for growth in the Employee Onboarding Software Market include Expansion into emerging markets, Development of innovative features and functionalities, Strategic partnerships and collaborations, Focus on employee experience and engagement, and Adoption of artificial intelligence and machine learning.
The Employee Onboarding Software Market is expected to grow at a CAGR of 9.2% during the forecast period, reaching a market size of USD 31.7 billion by 2032.
The key factors driving the growth of the Employee Onboarding Software Market include Increasing adoption of digital onboarding processes, Growing need for efficient and streamlined onboarding experiences, Rising demand for employee engagement and retention solutions, Growing focus on employee experience and satisfaction, and Stringent regulatory compliance requirements.
