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.

‍

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.

‍

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.

‍

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.

‍

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.

‍

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.

‍

What buyers really want from their tools

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

‍

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

‍

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

‍

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.

‍

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.

‍

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.