No.3587
Employee Engagement Market in Japan: Key Research Findings 2024
The Cloud-based Diagnostic Employee Engagement Survey Market for 2023 Estimated at 9,100 Million Yen, 135.8% of the Previous Year
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic employee engagement market and found out the current status and trends of market players, the market problems, and future perspective. This press release discloses the size of the cloud-based diagnostic employee engagement survey market.
Market Overview
Size of the domestic cloud-based diagnostic employee engagement survey market was estimated at 6,700 million yen for 2022, and 9,100 million yen for 2023 (135.8% of preceding year), based on the sales at businesses.
The need for services to help major companies improve employee engagement increased from 2020, associated with the rise of work from home during the COVID crisis. Contrary to the concern that the market growth will level off as companies became more selective about tools and services, the mandatory disclosure of human capital information from FY2022 (year ending March 2023) has invigorated the market. Although many companies were still uncertain as to what to disclose as human capital information in the first year round, many listed companies chose to disclose engagement scores in the fiscal year ending March 31, 2023 (FY2024), the second year of the mandate. The situation has contributed to the expansion of the cloud-based diagnostic employee engagement survey market.
Noteworthy Topics
Although Japanese Client Companies Show Strong Interest in Consultancy, Cloud-based Diagnostic Employee Engagement Survey Providers Apt to Strengthen SaaS
In Japanese companies, even the HR department often lack knowledge and expertise on employee engagement. They cannot utilize the results of diagnoses and surveys to actual engagements or enhance corporate value, thus tend to rely on consultancy provided by service providers.
Furthermore, due to the mandatory disclosure of human capital information, companies are strongly interested to learn what they can do to take advantage of the results of diagnostic and surveys, which will eventually improve employee engagement scores. For this reason, the demand for consultancy is increasing.
On the other hand, although providers of cloud-based diagnostic employee engagement survey offer consultancy as supplementary service, they are more inclined to focus on SaaS, particularly those added with AI-powered features, to encourage clients to improve employee engagement scores and work on organizational reforms on their own.
Future Outlook
The cloud-based diagnostic employee engagement survey market in 2024 is projected to grow to 129.7% of the preceding year to 11,800 million yen. For FY2024 (year ending March 2025), the number of listed companies disclosing engagement scores is expected to increase further. However, due to the competition with talent management system and Employee Experience Platforms, the year-on-year growth may be slightly below actual growth rate of 2023.
Research Outline
2.Research Object： Domestic providers of products and services that relates to employee engagement
3.Research Methogology： Face-to-face interviews by our expert researchers (including online interviews), survey by telephone and email, questionnaire, and literature research
What is the Employee Engagement Service?
In this research, the employee engagement services refer to products and services that support companies to address employee engagement, such as diagnostic employee engagement survey, psychological safety/well-being survey, working conditions survey, one-on-one meeting support (tool and service), talent management system, enterprise social network platform, and data analytics.
What is the Cloud-based Diagnostics Employee Engagement Survey Market?
There are three types of services that provide employee engagement analytics & surveys:
1) Cloud-hosted diagnostic engagement survey provided on subscription basis, such as yearly contract
2) Diagnostic employee engagement survey tools provided as a feature of talent management system
3) Diagnostic employee engagement survey tools provided as one-off service
Generally speaking, these services are offered with options such as consulting services.
In this research, the cloud-based diagnostic employee engagement survey refers to 1) only, and the market size is calculated based on the sales of cloud-based employee engagement service providers.
* Employee engagement means the feelings and recognitions of employees, which generally refers to emotional connection or trust towards the company and dedication to their job. Employee engagement surveys are designed to measure the degree of employee’s engagement based on these perspectives.
＜Products and Services in the Market＞
Employee engagement survey, psychological safety/well-being measurement survey, working conditions survey, one-on-one meeting support, HR OKRs, talent management system, health management system, enterprise social network platform, training service for engagement coaching, employee training service, data analytic tool, etc.
Published Report
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