The report forecasts the global cloud-based payroll software market to grow at a CAGR of 6.94% during the period 2016-2020.
One of latest trends in the market is integration of different modules to perform different functions. HR software is an enterprise-class software that can streamline and automate processes like payroll, performance reviews, recruiting, onboarding, compliance, analytics, and training. Enterprises purchase separate software for each and every HR operation such as payroll software, applicant tracking software, and talent management software. Integrated HR payroll software has a better impact on organizational drivers and also engages the employees better.
According to the report, one of the primary drivers in the market is advantages of cloud over on-premises solutions. On-premises payroll solutions usually require an initial investment such as servers, hardware, and power backup. In addition, it is also necessary to have an experienced IT staff for the maintenance of the hardware and to ensure the system functions on a consistent basis. In cloud-based payroll solution, the initial investment is much lower as compared with the on-premises payroll solution. The cloud-based payroll infrastructure is hosted and maintained by the vendor, and the users can access the payroll using a web browser with an Internet connection. Hence, the cost of implementing cloud-based payroll solution is lower than the cost of on-premises payroll solutions.
Further, the report states that one major challenge in the market is regulatory compliance. Even small organizations have to comply with a number of federal, state, and local regulations. Failing to understand the legal requirements for the data, process, and structure can result in penalties for the companies.