Global Payroll & HR Solutions & Services Market, By Deployment (Cloud, On-Premise, Hybrid), By Enterprise-size (Small and Medium Enterprise, Large Enterprise), By Solution (Software, Services), By Industry Vertical (Banking, Financial Services and Insurance, Government, Healthcare, Manufacturing, Retail, Telecom and IT, Transportation and Logistics, Others), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA)Trend Analysis, Competitive Market Share & Forecast, 2017-2027

Published:
June 2021
Report Code:
BWC1815
Available Format:
PDF PDF Icon
Pages:
175

payroll hr solutions services market

Global Payroll & HR Solutions & Services Market- Industry Trends & Forecast Report 2027

The global payroll & HR solutions & services market was worth USD 20.4 billion in 2020 and is further projected to reach USD 37.2 billion by the year 2027, growing at a CAGR of 9.1% during the forecast period (2020-2027). Additionally, the growing requirement for managing the expanded workforce, as well as the increasing need for replacing older systems with superior global payroll & HR solutions & services platforms, are expected to drive market expansion. The increased acceptance of cloud-based technologies in companies is also propelling the growth of the global payroll & HR solutions & services market.


Source: BlueWeave Consulting

Global Payroll & HR Solutions & Services Market- Overview

Payroll & HR solutions and services are transforming employees' experience by providing time-saving, data-crunching features such as real-time analytics, self-service, and mobile-friendly screens. HR payroll and software solution maintains data such as employee information, home address, social security number, financial and others. The software’s ability to provide customized solutions considering the current workforce dynamics exhibits high-growth potential. Cloud-based HR payroll services and solutions are in high demand these days since they provide more accessibility. Furthermore, a cloud-based service allows businesses to scale up their outsourced payroll systems as employees join and leave.

Global Payroll & HR Solutions & Services Market Forecast and Trends

Growth Drivers

Technological Advancements and Digitization in Organizations

The market for payroll & HR solutions & services has grown tremendously as a result of technology improvements and increased usage of the Internet of Things (IoT) and Artificial Intelligence. Service providers place more value on implementing innovative and cutting-edge technology and solutions to improve the workforce management system and boost performance. Furthermore, as cellphones are increasingly being used for general business management, a plethora of integrated mobile applications with simple user interfaces have emerged. As a result of these factors, the global payroll & HR solutions & services market is gaining significant traction. 

Rising Focus Towards Improving Employee Engagement and Efficiency

Companies nowadays focus more on improving the engagements and efficiency of their employees rather than just working. Thus, personnel management tools are extremely useful for this reason. Companies receive hundreds of applications for a single position, making it difficult for the human resource manager to sort through them all and locate the best candidate. Therefore, they adopt advanced HR solutions and services for streamlining the hiring process. Furthermore, various incentives and bonuses are provided to employees to keep them motivated. The payroll and HR solutions and services make it easy to carry out all the processes.

Restraints

Lack of Technologically Advanced Resources in Developing Countries

Even though the adoption of technology has been embraced in a lot of organizations and countries, it is still one of the biggest hindrances to the growth of the payroll & HR solutions & services market. Several countries are still reluctant to adopt these services and solutions due to various reasons such as lack of sufficient monetary resources or because of cultural impact. For instance, Japan is deemed as a very technologically advanced country. However, the companies in the country still accept only hand-written job applications due to their high dependency on paperwork.

Impact of Covid-19 on Global Payroll & HR Solutions & Services Market

The COVID-19 pandemic crisis has elevated the global payroll & HR solutions & services market. The coronavirus-induced lockdown was a difficult period for businesses, particularly small and medium-sized ones. Because business operations were conducted via work from home, payroll & HR solutions & services provided significant assistance in employee management and aided firms in streamlining their business processes straight and smoothly. Furthermore, through outsourced and cloud options, the burden of management also eased. As a result, a lot of small and medium enterprises opted for the payroll & HR solutions & services, which in turn boosted the growth of the global payroll & HR solutions market.

Global Payroll & HR Solutions & Services Market - By Deployment

Based on deployment, the global payroll & HR solutions & services market is segmented into cloud, on-premise, and hybrid. The cloud segment held the largest market share in the year 2020 and is expected to flourish immensely during the forecast period. This is owing to several benefits it offers such as access to data from distant locations, cost savings, flexibility, etc. Furthermore, due to lockdown, the offices were closed but the business operations were going on through work from home. In such times, cloud-based services offered smooth functioning through mobile accessibility.

Global Payroll & HR Solutions & Services Market - By Enterprise-Size

Based on enterprise size, the global payroll & HR solutions & services market is categorized into small & medium enterprises and large enterprises. A small and medium-size enterprise dominated the global payroll & HR solutions & services market and is projected to maintain dominance even during the forecast period. According to the World Bank, small and medium-sized enterprises account for more than 90% market share. Furthermore, with government and private funding, the number of startups in developing nations such as India, China, and Malaysia has increased, driving the demand for payroll & HR solutions and services.

Global Payroll & HR Solutions & Services Market - By Industry-Vertical

Based on industry vertical, the market is segmented into banking, financial services, and insurance, government, healthcare, manufacturing, retail, telecom and IT, transportation and logistics, and others. The payroll and HR services and solutions have significant demand in the telecom and IT sector. This segment is also projected to flourish during the forecast period with a higher CAGR. However, demand for automated systems in organizations of various sizes is expected to boost the market in all sectors. The industry is also gaining traction with the growth of enterprises and the increasing workforce.

Global Payroll & HR Solutions & Services Market - Regional Insights

Geographically, the global payroll & HR solutions & services market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa. Among these, North America holds the largest market share and is expected to grow at a higher CAGR during the forecast period. U.S and Canada are also anticipated to drive the growth of the payroll & HR solutions & services market in North America owing to the presence of a large number of established key players, such as Oracle Corporation, International Business Machines Corporation, NetSuite Inc., Workday Inc., etc.


Competitive Landscape

The leading market players of the global payroll & HR solutions & services market are Automatic Data Processing, Inc., SAP SE, Sage Group plc., Paychex, Inc., Ramco Systems Limited, TMF Group Holding B.V., Kronos Incorporated, Paycor, Inc., Paycom Software, Inc., Paylocity Corporation, Ultimate Software Group, Oracle Corporation, Jobvite, Inc., Intuit Inc., TriNet Group, Inc., Workday, Inc., Ceridian Dayforce Corporation, Immedis, SD Worx NV, and other prominent players. The industry players are focused on offering advanced services at affordable prices to cover large shares in the market. Adoption of competitive strategies like partnerships, mergers, acquisitions is also very common in the global payroll & HR services market.

Recent Development

l  In May 2021, IRIS, a UK-based private software house, and Western Union Business Solutions announced their partnership for serving global payroll and payments worldwide. This five-year international partnership is aimed towards strengthening cross-border payroll and currency payments for organizations.

l  In May 2021, Humi, a Canada-based all-in-one HR platform announced the launch of ‘Humi Marketplace’ to offer access to third-party health and wellness offerings from partner companies specifically for the Humi clients.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage

North America, Europe, the Asia-Pacific, Latin America, and the Middle East and Africa

Product Service/Segmentation

By Deployment, By Enterprise-size, By Solution, By Industry Vertical, By Region

Key Players

Automatic Data Processing, Inc., SAP SE, Sage Group plc., Paychex, Inc., Ramco Systems Limited, TMF Group Holding B.V., Kronos Incorporated, Paycor, Inc., Paycom Software, Inc., Paylocity Corporation, Ultimate Software Group, Oracle Corporation, Jobvite, Inc., Intuit Inc., TriNet Group, Inc., Workday, Inc., Ceridian Dayforce Corporation, Immedis, SD Worx NV, and other prominent players.

By Deployment

Ø  Cloud

Ø  On-Premise

Ø  Hybrid

By Enterprise-Size

Ø  Small and Medium Enterprises

Ø  Large Enterprises

By Solution

Software

Ø  Suite

Ø  Standalone

Payroll & Compensation Management

Time and Attendance Management

Compliance Management

Workforce Management

Claims Administration

Employee Benefits Management

Hire Management

Ø  Others

Services

By Industry Vertical

Ø  Banking, Financial Services and Insurance

Ø  Government

Ø  Healthcare

Ø  Manufacturing,

Ø  Retail

Ø  Telecom and IT

Ø  Transportation and Logistics

Ø  Others

By Region

Ø  North America

Ø  Europe

Ø  Asia-Pacific (APAC)

Ø  Latin America (LATAM)

Ø  Middle-East & Africa (MEA)

FAQs:

1. What is the current size of the global payroll & HR solutions & services market?

Answer: The global payroll & HR solutions & services market reached USD 20.4 billion in 2020.

2. What are the major factors driving the growth of the global payroll & HR solutions & services market?

Answer: The major factors driving the growth of the global payroll & HR solutions & services market are technological advancements and digitization in organizations and rising focus towards improving employee engagement and efficiency.

3. Who are the key players in the global payroll & HR solutions & services market?

Answer: The key players in the global payroll & HR solutions & services market are Automatic Data Processing, Inc., SAP SE, Sage Group plc., Paychex, Inc., Ramco Systems Limited, TMF Group Holding B.V., Kronos Incorporated, Paycor, Inc., Paycom Software, Inc., Paylocity Corporation, Ultimate Software Group, Oracle Corporation, Jobvite, Inc., Intuit Inc., TriNet Group, Inc., Workday, Inc., Ceridian Dayforce Corporation, Immedis, SD Worx NV, and other prominent players.

4. Which deployment segment accounted for the largest share in the global payroll & HR solutions & services market?

Answer: The cloud segment accounted for the largest share in the global payroll & HR solutions & services market.

5. Which region is at the highest growth rate in the global payroll & HR solutions & services market?

Answer: North America has the largest share in the global payroll & HR solutions & services market.

 

COVID-19

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