The
Payroll and HR (Human Resources) departments in organizations
coordinate various functions like salary hikes, bonus payments,
recruitment, benefit deductions, firing employees and vacation
leaves. They also need to maintain data that is confidential in
nature like employee information, home addresses, financial data and
social security numbers. They need to take care that such
confidential information is not accessed by unauthorized companies or
individuals. The payroll and HR software is a fully integrated
functionality that enables the payroll and HR department to operate,
access, manage and process organization’s various payroll and HR
functions. It also helps decision makers to gain a clearer insight of
organization’s resources even in turbulent situations. The various
modules in the software are customized depending upon the needs of
organization and minimizes the amount of time spent on the
administration work by the staff members. It helps manage everyday
tasks more effectively, reduce duplication in work and make
reorganization changes quickly and effectively.
Each
organization has its own specific needs. The payroll and HR software
market can be segmented depending on the size of businesses as small
size, medium size and large size organizations. In small businesses,
where the employee size is up to 50, every employee plays an
important role in contributing to the company’s revenue. Even one
unproductive employee can have a huge impact on the bottom line of
the business organization. For this purpose, payroll and HR
department need to be properly managed to avoid any unpredictable
circumstances.
The
payroll and HR management software is customized to cater to various
small business functions like performance measurement, time and
attendance tracking, and compensations and retirement plans among
others. In medium size businesses, the employee size ranges from 50
to 500 employees. The requirements in these organizations are similar
to small size businesses but the software is customized to perform
additional functions like recruitment which includes hiring and
retaining potential talent, and securely streamlining administrative
load by simplifying payroll administration. For business
organizations with employee size greater than 500, the software is
customized to manage risks and contain related costs, production and
distribution of pay statements and banking services.
As
the global economy is improving, companies are looking for latest
software solutions that can cut down costs of upgrading systems every
year. New user interfaces like mobile applications which enable
carrying out operations outside office premises and other features
like integration with the existing systems in the organization is
driving the market for payroll and HR software market. Also, the
payroll and HR is a data driven function and the need to create
talent analytics for taking talent related decisions and workforce
planning is driving the market for payroll and HR software market.
Another driver is the ability to provide customized solutions
considering the current workforce dynamics. Companies prefer to
invest in these customized solutions as these are affordable and
improve various functions like hiring and retaining talent. However,
challenges like understanding the technical requirements of
organizations and integrating various modules of software to perform
various functions are some constraints affecting the growth of this
market.
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