The global compensation software market was valued at US$ 829.3 million in 2017, and is expected to reach US$ 1,892.4 million by 2026, registering a CAGR of 9.6% over the forecast period from 2018 to 2026, according to Global Compensation Software Market Report, by Deployment Model (On-premises and Cloud-based), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa).
The aim of adoption of compensation software is to reduce manual errors by automating the compensation management process. Compensation software is responsible for executing right set of evaluation parameters along with reduction of paper work, thus simplifying the overall process and saving time and cost for an organization. The compensation software provides advantages such as reduced labor costs, aids in talent retention, and increases employee engagement thus enhancing overall productivity and efficiency of the organization.
Increasing demand for automated compensation process, shift from manual working to automation by small/medium/large enterprises for better performance and output from their workforce, and rising adoption of digital HR technologies propelled by increasing usage of mobile phones by the employees for their work related targets are some of the major drivers for growth of the global compensation software market. Digital HR technology helps in providing automated access and aids in evaluating performance and other parameters of the workforce. These software can be linked to integrated applications on the mobile phones of the employees on which they can get the time & attendance, appointment & meeting reminders, on-demand learning for new projects, stress monitors, and others.
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Key Trends and Analysis of the Global Compensation Software Market:
- Compensation software market in Asia Pacific is expected to exhibit the highest CAGR over the forecast period (2018 - 2026). The growth in this region is attributed to increasing development in IT infrastructure and growing number of new small/medium/large enterprises in emerging economies such as India and China; For instance, according to , the number of SMEs in China in 2015 was 20.5 million which grew to 29.4 million in 2017.
- Increasing usage of internet and usage of mobile phones for company’s work are pushing companies to adopt digital HR technology to manage the compensation process correctly. It can be processed through company’s specific mobile apps to communicate, validate, and evaluate the compensation process.
- North America is expected to be the largest region in the global compensation software market and accounted for 51.7% of the total market share in 2017 and is expected to be the most dominant region during the forecast period as well. This is owing to high presence of number of small, medium, and large enterprises adopting automated compensation management process to compete in their related market. High presence of enterprise software providers such as NetSuite ERP and SYSPRO, increasing penetration of social media, and need for cost-effective compensation planning process are factors expected to drive growth of the market for compensation software in North America. The adoption of compensation software is very high in countries such as the U.S. and Canada owing to growing start-ups and micro-enterprises. For instance, according to ’ estimations, during 2012—2017, start-up funding in all industries grew by at least 50%. According to the U.S. had around 30 million SMEs in 2017. Moreover, shift towards adoption of automated workflows by companies in these countries is further aiding in growth of the compensation software market.
- Some of the most popular compensation software are ADP Workforce Now, SAP SuccessFactors, PoepleFluent, Laserbeam Compensation, TalentComp, and CuroEnterprise.
- Major players operating in the global compensation software market include HRsoft, Kinixsys, Kronos, Beqom, Halogen Software, Willis Towers Watson, Greytip Software, SumHR, Ultimate Software, Talentsoft, BullseyeEngagement, JSM Technologies, Decusoft, Peoplefluent, Execupay, ADP LLC, PayScale, CWS Software, SAP Success Factors, Cornerstone, Curo, Oracle Corporation, Harvest HCM, Workday Inc., Nitso Technologies, and Lumesse.