Reinventing the Digital Workplace

To better understand evolving priorities and decision-making behaviors in this space, we surveyed 100 digital workplace software decision-makers across industries, company sizes, and geographies between March and May 2025.

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Fragmented communication is still the #1 challenge

Across the board, nearly half of all respondents (47%) identified fragmented communication across teams and departments as the most pressing issue. This was followed closely by low employee engagement and lack of feedback loops (27%).

Interestingly, this challenge persists regardless of platform orientation: both desktop-first and mobile-first organizations cited communication silos as a critical issue.

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Most companies favor all-in-one platforms, but enterprises go best-of-breed

• Most respondents (65%) prefer to use a single platform to centralize employee-related processes within each operational pillar.

• Meanwhile, 28% favor a best-of-breed approach, selecting multiple vendors to meet specific needs. This approach is especially popular among enterprise companies (36% adoption), who often require more specialized functionality.

• Only 7% report not using any third-party digital workplace solutions. This is slightly more common among enterprises and desktop-first companies (both at 12%).

This divergence highlights the trade-off between integration simplicity and functional depth; a key theme echoed throughout the survey.

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Software spend is set to grow, especially in HR & engagement

Spending priorities differ across company sizes and platform types, but the general trend is clear:

• 61% of companies expect to increase spending on employee engagement solutions over the next five years.

• 51% plan to increase investments in operations and shift management tools.

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The most consistent investment area is HR and employee services, with 20% of companies allocating >60% of their third-party software budget to this category.

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Switching vendors is doable, but not without friction

• 42% of respondents described switching third-party communication or workforce management solutions as "moderately difficult", meaning the transition would require noticeable effort, planning, and some disruption, but is ultimately manageable with the right resources.

• 35% said switching would be "very" or "extremely difficult", which typically implies high operational risk, significant data migration complexity, workflow reconfiguration, and extensive retraining, particularly challenging for large or mobile-first organizations.

• Only a small minority reported the process as easy, reinforcing that vendor stickiness remains high despite growing dissatisfaction in some areas.

However, mobile-first companies reported slightly higher friction, likely due to more complex frontline workflows.

Despite this, churn risk remains low, only ~10% of respondents are actively considering switching providers.

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What buyers really want from their tools

Across both employee engagement and operations solutions, the survey uncovered clear purchasing priorities:

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For Employee Engagement Tools:

• Top criteria: Feature quality, all-in-one platform for frontline teams

• Satisfaction levels: Roughly 70% of respondents rated their current solution at more than 6 out of 10, with the average rating standing at 6.6 out of 10

• Pain points: Poor UX, limited engagement features, weak integration

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For Operations & Shift Management Tools:

• Top criteria: Depth of functionality, customization

• Satisfaction level: 69% of respondents gave their current solution a score above 6 out of 10, with an average of 6.3 out of 10

• Pain points: Manual workflows, poor scheduling flexibility, UX issues

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Enterprise vs SMB: different needs, same direction

While enterprises focus on breadth and integration, SMBs prioritize ease of use and core HR functionality. For instance:

• SMBs rank HR & employee services as highly critical due to tighter resource constraints and retention risks.

• Enterprises place a higher premium on communication and engagement, driven by the need to manage large, dispersed teams.

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The 2025 survey confirms a few truths:

• Simplicity and centralized experiences remain critical for adoption, especially in SMBs and frontline-heavy sectors.

• Vendors are sticky when they address critical workflows and provide flexibility, but switching remains feasible.

• Growth will be driven by the intersection of HR services, engagement capabilities, and operational intelligence.

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To understand how digital workplace priorities are evolving, and where software vendors can create the most value across HR, engagement, and operations, request full access to the report.