Global Compensation Software Market
Compensation software deals with the critical part of talent management and employee retention. Compensation management software manages the employees’ salaries in an organization and provides guidelines about how the salary should be given according the job responsibilities and designation of the employee. The compensation management software is accessed by the HR managers of any organization however, the other managers can also manage it based on the authority provided by the organization.
Compensation software is also known as Human Capital Management Solutions (HCM) solutions and has automated inbuilt features, which include the HR policies, administration benefits, open enrollment & life events, time, attendance & scheduling, payroll administration, and tax management.
End users such as corporate companies in this market prefer to choose a vendor who provides converged software suits. This is due to the fact that if a corporate prefers to adopt different software suits every time, it may lead to integration issues of the software and thus, changing the process of the company. The implementation of compensation software is gaining traction between all types of enterprises as it helps to increase transparency and improve understanding at the time of rewards and based on the performance of the employees and enables companies to perform an efficient management process of compensation.
Rising demand for automated compensation processes is expected to aid in growth of the market
Increasing demand for automated compensation management process is one of the major factors affecting growth of the market during the forecast period (2018–2026). Automation aid in simplifying compensation planning and processing of implementations (policy, procedures, regulations and others). It reduces paper work, increases efficiency, simplifies the process and gives a centralized place to manage all the tasks related to employee compensation and saves the administration’s cost and time while providing maximum efficiency with reduced manual errors.
Moreover, rising adoption of digital HR technology (digital HR technologies comprises different equipment for different types of HR/management related operations such as biometric machine for attendance) is one of the recent trends and major drivers for growth of the compensation software market globally. Use of mobile phones for work and communication by employees of any organization is increasing and this has led to growing adoption and implementation of mobile HR technologies such as WorkBright, Namely, and Zenefits. This is expected to create a conducive environment for growth of the market.
On-premises segment accounted for largest share in the global compensation software market in 2017
On-premises deployment segment is estimated to hold the larger market share in 2018, owing to better confidential information control and security from external attacks. It provides benefits such as data migration, ease in installation, employee training services, and complete control over critical database of the employees and HR policies.
Cloud-based segment is expected to exhibit the highest CAGR over the forecast period. This is due deployment being cost-effective and benefit of deployment even in a basic IT infrastructure.
Figure: Global Compensation Software Market Value (US$ Million) and Share (%) by Deployment Type, 2017 & 2026
SOURCE: COHERENT MARKET INSIGHTS ANALYSIS, 2018
Figure: Global Compensation Software Market Value Share (%) by Region, 2017 & 2026
SOURCE: COHERENT MARKET INSIGHTS ANALYSIS, 2018
The top five vendors in the global compensation software market includes ADP LLC, Oracle Corporation, SAP Success Factors, Ultimate Software, and Workday Inc.
Other players operating in the global compensation software market are HRsoft, Kinixsys, Kronos, Beqom, Halogen Software, Willis Towers Watson, Greytip Software, SumHR, Talentsoft, BullseyeEngagement, JSM Technologies Decusoft, Peoplefluent, Execupay, PayScale, CWS Software, Cornerstone, Curo, Harvest HCM, Nitso Technologies, and Lumesse.
Compensation management is a process of talent management and employee retention by evaluating factors such as attendance, salary, working time, bonuses, benefits, and on-site amenities of the employee for rewards & compensation process in any organization. This is done to improve productivity of the employees of a company. Compensation software provides benefits of reduced labor cost by use of salary & compensation data (both internal & external) to facilitate better planning and more target incentive programs.
Demand for automated compensation management process is increasing as it helps to simplify the management administration process, reduces errors caused by manual work, thus saving time and cost for any organization. This also aids in increasing the overall productivity & efficiency of the administration to retain its employees in the organization. Through automation of compensation process, companies are moving away from manual process which includes use of spreadsheets that may have number of errors and lead to wrong or incorrect compensation process.
One of the key trend and driver for growth of this market is adoption of digital HR technology. Mobile phones are becoming most preferred channel for work for employees which has pushed organizations to adopt digital HR technology to update and communicate for tasks such as to provide information about new rules/ regulations, attendance policies, and for meeting reminders.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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