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Feb 27, 2020

Approx. 6 min. read

The Employee Communications Software Market

Employee communications softwares seek to address two overarching business problems: low employee engagement and ineffective information sharing and...

How does the employee communications softwares market look like today?

Employee communications softwares seek to address two overarching business problems: low employee engagement and ineffective information sharing and gathering

Overall, these tools help you answer the question "how do I communicate relevant information to each individual in my organization?".

🎥 To hear more about the employee communications market, tune into our live session: "Employee Communications 101: A Chat with G2." Join on March 25th to hear expert analysts and researchers discuss the perfect communications ecosystem. 

Low employee engagement includes issues like employees leaving internal emails or channels on read, resulting in ineffective information sharing. Ineffective information sharing includes business problems such as disseminating irrelevant information, sharing information too often or infrequently, using the wrong channels, or siloing information within teams.

how does the employee communications landscape look like today?Related: 8 Employee Engagement Statistics You Need to Know in 2020 [INFOGRAPHIC]

These two problems often feed off each other. If an employee continually receives internal emails only relevant to specific teams or offices, they’re less likely to open them. Over time, that employee will become less engaged with internal communications and likely won’t interact with relevant information.

Low employee engagement and ineffective information sharing are silent killers for businesses. Many factors impact employee productivity, and being uninformed and unengaged are among them. While top-down information isn’t always absorbed by employees, someone still works to create and distribute this content. Unproductive employees and wasted time are both expensive—these costs add up.

Employee communications tools are valuable to businesses because they are uniquely suited to solve these problems. At their core, employee communications tools answer the question of “how do I communicate relevant information to each individual in my organization?”. They do so by segmenting and personalizing top-down and cross-team communications and tailoring content delivery across multiple devices, ensuring employees receive relevant information using a channel effective for them. Personalization guarantees a workforce’s time and attention are safeguarded.

employee-communications-in-the-workplaceRelated: Internal Communications: How to Align Employees with Your Strategic Goals?

A few key features distinguish employee communications tools from other employee-focused software:

  • Automation and scheduling for internal content campaigns
  • Segmentation and personalization
  • Content analytics and performance reports
  • Tailored content delivery across devices

An effective top-down and cross-team communication strategy paired with the right employee communications software are necessary for a productive, qualified workforce and can save businesses lots of resources.

Software Markets Related to Employee Communications

Software vendors in the employee communications market will often build other types of functionality into their offering to support employees in multiple ways. As a result, employee communications tools can have significant overlap with other categories of software. While employee communications tools can be used by themselves, businesses looking for secondary functionality and features will find they have a lot of different options.

Employee Engagement Softwares

Many vendors in the employee engagement software market include employee communications features in their offering. The employee communications and employee engagement markets are large on their own, but there are a notable number of vendors with products that compete in both and are successful.

Employee communications tools with additional employee engagement functionality allow businesses to pair their internal content distribution strategy with helpful features like pulse surveys and channels for employee recognition. Both of these features can be useful additions to any employee communication solution which allow businesses to further tailor their internal content strategy based on employee feedback.

Courtney Moran, G2’s market research analyst specializing in HR technology, notes that are clear returns when companies utilize employee engagement and employee communications solutions together:

“G2 recently surveyed HR and non-HR employees for insight into 1) how these two groups feel about their own engagement and 2) their perception on how software can improve employee engagement. Our employee engagement research report provided us with some interesting insights".

“Respondents from both groups understand that employee engagement is important for a thriving company culture, but we found a disconnect between whether employees are engaged and what the solutions for engagement may be. HR professionals claim to provide engagement initiatives, but they might be failing to communicate the value of these solutions and how employees can best utilize them. Meanwhile, non-HR employees don’t feel as engaged as their HR-based counterparts believe they are".

“HR personnel exhibit high hopes for the benefits of HR technologies, but have yet to experience the results they anticipate receiving across the board. The greatest divide between the benefits already gained and those they anticipate receiving are improvements in the connections between coworkers and managers. HR personnel reported experiencing a 26% gain in increased connection whereas they are anticipating experiencing 70% improvement".

“This is where employee engagement and employee communications software can be implemented as a comprehensive engagement solution. Employee engagement software allows organizations to regularly poll employees about how they feel about their workplace, and employee communication tools allow organizations to reach every employee with relevant information.”

Employee Intranet Softwares

Employee intranet software has always included features that facilitate top-down communication like newsfeeds, memos, and internal blog posts. However, employee intranets aren’t as popular as they once were, and dedicated employee communication solutions today focus on channels outside intranets. Employee intranets also rarely provided the segmentation and personalization features that enable effective communication.

Business Instant Messaging Softwares

Though largely unrelated, employee communications software and business instant messaging software are both labeled as internal communications solutions. Employee communications tools are concerned with connecting employees with information from across a business, keeping a workforce informed and fostering collaboration between teams. On the other hand, business instant messengers are focused on quicker peer-to-peer connections and conversations.

While both types of software are considered internal communications solutions, their aims are different. This is reflected in the market where very few vendors are aiming to compete in both spaces. Businesses fulfill their employee communications needs with one solution and purchase another for business instant messaging.

Employee Advocacy Softwares

A few players in the employee communications space also provide employee advocacy features within their solution. Vendors that provide employee advocacy functionality will gather employee-generated content via the employee engagement portion of their offering. This can then be distributed through top-down employee communications features.

Employee Communications on G2

The employee communications software category on G2 is a relatively new addition. This is largely due to the fact that only recently have software vendors started focusing on the issue of communicating relevant information to an entire workforce at scale. This shift in focus was primarily driven by the inability of earlier internal communications tools to provide a truly personalized communications experience on an individual level.

In the last few years, more software vendors have brought their employee communications features to the forefront of their product. More products are focusing on the key features mentioned earlier, and employee communications is building a more prominent, well-defined space for itself in the internal communications software arena.

For G2’s employee communications category, our aim was to create a functional definition that distinguished it from related categories while leaving room for growth. The market is still settling, and other features might become staples for the category in the future. With more software vendors highlighting their employee communications features, we can expect unprecedented innovation in the space.

Want to hear more about the employee communications landscape? Join our live session "Employee Communications 101: A Chat with G2" on March 25th where we'll discuss with Research Analysts from G2 how the perfect employee communication ecosystem would look like. 

employee communications 101: a chat with G2

Written by

Jazmine Betz

Jazmine Betz

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