HR Payroll Software Market Overview
HR Payroll Software Market Size was valued at USD 7.3 billion in 2023. The HR payroll software market industry is projected to grow from USD 8.1 billion in 2024 to USD 18.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.2% during the forecast period (2024 - 2032). Rising frequency of cloud and mobile deployment, increase in automation of HR processes, and the comprehensive and flexible solutions are the key market drivers enhancing the market growth.
Figure 1: HR Payroll Software Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
HR Payroll Software Market Trends
Growing Prevalence of cloud and mobile deployment to boost market growth Software specifically designed to help businesses pay employees' salaries when their task is over is known as HR payroll software. The HR payroll software market grows as a result of the industries facilitation of wage increases, bonus payments, hiring, vacation leaves, benefit deductions terminating employees, and other services. Additionally, the market for HR payroll software enables users to quickly produce and distribute pay slips. It delivers minute-long checklist-driven payroll processing as well as precise reconciliation capabilities that help firms distribute salaries quickly and accurately. Such characteristics boost market demand for HR payroll software and expand its potential.The software's extensive and adaptable solutions for coordinating and organizing business procedures are boosting the market for HR payroll software.
According to a market research of HR payroll software, the expansion of the HR payroll software market share is being driven by the simplification of complicated business processes with dependable processing and reporting. The demand for HR payroll software has increased due to the security of data management and transactions in the programmer. One can profit from customization, review of past performance, safe data management, and accurate transactions by implementing HR payroll software systems. Customer satisfaction processes and policies lower liability, employer costs, and administrative strain, which leads to an expansion of HR payroll software market. This is related to the many benefits that an on-premise deployment provides, including a high level of data protection and safety. Industries like on-premise deployment models because they offer more data security and are less likely to experience data breaches than cloud-based deployment models, which also increases demand for on-premise deployment models in both the public and private sectors. The cloud segment, however, is anticipated to have the biggest share in the approaching years. Cloud-based HR payroll software has seen an increase in usage due to its low cost and simple upkeep. Additionally, it offers flexibility and scalability to improve business processes and drive the market for HR payroll software forward.
HR Payroll Software Application Insights
The HR payroll software market segmentation, based on application type, includes payroll, benefits, tax filings, and employee’s records. The payroll HR Payroll Software segment held the majority share in 2021 contribution to the HR payroll software market revenue. This is primarily owing to the rising prevalence of cloud and mobile deployment across the globe.
The main factor driving the segment's expansion is the increased demand among businesses for payroll software that controls the manual process and fosters team member trust. On the other side, it is projected that during the following years, the services sector would experience the highest growth rate. HR payroll services are expected to have an impact on the segment's growth in the upcoming years because they improve software implementation, reduce deployment costs and risks, and maximise the value of current installations.
HR Payroll Software End User Insights
Based on End Users, the HR payroll software industry has been segmented into large, medium, and small size organiztions. The large organization segment is the largest growing segment in the year 2020-2021. These businesses require HR payroll solutions to manage the large number of employees. However, during the next few years, the SME segment is expected to have the highest CAGR. The factors that are considered the segment's growth drivers include factors like rising awareness of HR payroll software and an increase in the number of start-ups in emerging markets.
Figure 2: HR PAYROLL SOFTWARE MARKET SIZE
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The industry gains many advantages from the deployment of HR payroll services, including simple cash flow analysis, management of employee salaries, deductions, other payments, net pay, bonuses, generation of pay stubs, income tax computation, and payroll. Additionally, it improves software implementation, optimizes the value of an existing installation, reduces deployment costs and risks, and does a host of other things that help the HR payroll software industry expand. The adoption of HR payroll software has a number of advantages for the sector, including the ability to simplify operations, do away with manual labour, and save money and time, all of which contribute to the market's expansion.
HR Payroll Software Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America HR payroll software market accounted for USD 2.85 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing due to the increase in the rise in HR solutions and client base for products of online HR administration across the region. The increasing use of HR payroll software in manufacturing, healthcare, finance & banking, and other sectors to improve the business and the customer experience will provide opportunities in the North America HR payroll software market.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: HR PAYROLL SOFTWARE MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe HR payroll software market accounts for the second-largest market share due to the cloud and mobile deployment. Further, the Germany HR payroll software market held the largest market share, and the UK HR payroll software market was the fastest growing market in the European region.
The Asia-Pacific HR payroll software market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to increasing increased adoption of cloud based technologies and increase in penetration of app-based HR payroll software. Moreover, China HR Payroll Software market held the largest market share, and the India HR Payroll Software market was the fastest growing market in the Asia-Pacific region.
HR Payroll Software Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the HR payroll software market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new software launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the HR payroll software industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the HR payroll software industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, HR payroll software industry has provided medicine with some of the most significant benefits. The HR payroll software market major player such as Ultimate Software (U.S.), SAP(U.S.), Oracle(U.S.), ADP(U.S.), Sum Total Systems Inc. (U.S.), Epicore (U.S.), Sage(U.S.), Patriot Payroll(U.S.), Ascentis (California), Vibe HCM (U.S.), Success Factors (U.S.), and others are working to expand the market demand by investing in research and development activities.
Since Paycom's founding more than 25 years ago, company have remained devoted to making life easier for employees while also taking care of our clients' demands in a constantly changing environment. Company fulfil this duty through five values. They serve as our organization's compass in all we do, from using HR software to having actual conversations. Employees can control every part of their income using HR technology, including PTO, costs, and benefits. Paycom goes a step further by allowing your employees, who are the ones who know their paychecks the best, to approve payroll.
They debug, check, and approve their payout with Beti to ensure accuracy. That shortens the procedure by days, lowers the chance of noncompliance, and decreases post-payroll corrections.
For Instance: July 2021, Paycom Software launched the industry’s first self-service payroll technology allowing employees to do their own payroll, improving data accuracy, oversight and the user experience for businesses and their employees on each payroll cycle.
Key Companies in the HR Payroll Software market includes
HR Payroll Software Industry Developments
December 2021: Ceridian bought ADAM HCM. ADAM HCM was a top payroll and HCM provider with 33 customers throughout Central America, South America, and the Caribbean. By expanding the Dayforce platform into Latin America, a region that is very appealing to Ceridian's multinational clients, this acquisition will quicken the company's worldwide growth strategy.
March 2022: UKG acquired Ascentis, a provider of full-suite HR and workforce management solutions that has grown from 860 customers to 4,800 customers in the past five years.
July 2021: Paycom Software launched the industry’s first self-service payroll technology allowing employees to do their own payroll, improving data accuracy, oversight and the user experience for businesses and their employees on each payroll cycle.
HR Payroll Software Market Segmentation
HR Payroll Software Application Outlook
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Payroll
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Benefits
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Tax Filings
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Employees Records
HR Payroll Software End User Outlook
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Large
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Medium
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Small Size Organizations
HR Payroll Software Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
HR Payroll Software Market Highlights:
