Employee Engagement

Employee Engagement Service Providers

Employee Engagement Market 2024

After closing account for March 2023, human capital disclosure has become mandated in securities report and other documents, which is increasing the awareness of the word "employee engagement" among companies and HR service providers, expanding the room for the markets of related services to expand. On the other hand, the approaches to improve employee engagement are diversifying. There are many services and tools that appeal to improve employee engagement, which is making it difficult for companies considering the deployment to understand how to use which of these services and tools bring about certain effects. Such companies consider taking measures against challenges that they face such as preventing employees from leaving the company, productivity improvement, and recruiting talented resources. Therefore, it is still in the phase that enlightenment is needed on how to connect the solutions to these challenges with the value that employee engagement and other services provide. In broader sense, recently newsworthy keywords "reskilling and "well-being of employees" are also involved. The report has compiled the moves by companies and markets related to employee engagement.

I   Current Status and Perspectives of Employee Engagement Market

1. Current Status and Perspectives of Employee Engagement Market
   1) Market of HR technologies
   2) Status and perspectives of employee engagement
   3) Analysis of noteworthy service providers
2. Definition of Employee Engagement
   1) Various types of engagement
   2) Relationship between engagement and labor productivity
   3) Approach to improve employee engagement
   4) Difference from employee satisfaction
3. Background of Why Employee Engagement Market Draws Attention
   1) Decreasing working population, signs of increasing job
   　 mobility
   2) Work values for the Millennials and Gen Zs that pursue
       opportunities for growth
   3) Hybrid working (remote working and commuting) 
       continues, which makes the issue of lack of
       communications to remain
   4) SDGs and ESG helped pay attention to "fulfillment at
       work"
   5) Human capital disclosure has become mandatory and has
       become a major KPI
   6) "ITO Report for Human Capital Management" positioned
       HR strategy to be a critical factor
   7) "100-year of life period" and "reskilling" have been
       highlighted
   8) Shift from membership type to job type

II    Trend of Employee Engagement Services by Category

1. Diagnostics/Survey Cloud/Services
   1) Two years from obligations of human capital disclosure.
       Increase in engagement score disclosure
   2) Scores are added when presenting solutions for
       organizational improvement from Diagnostics/Survey
   3) Japanese companies need consultation services, but
       suppliers are enhancing self-propelled services
   4) While there is room for market exploration, but
       identification of needs is necessary to maintain high
       growth
2. Tools and Services for 1on1 Operation Support
3. Talent Management System
4. Other Approaches
   1) Higher demand for utilizing BI tools, but market
       intensification is still in midway.
   2) Psychological safety is effective method as a compliance
       measure
   3) Employee engagement needed more as a method of
       digital transfer
   4) Importance of employee engagement policies according
       to each of personalities5) Cross-border experience
       attracts attention as employee engagement

III   Initiatives by Noteworthy Service Providers

22 enterprises