Compensation Software Market By Deployment Mode (On-Premise And Cloud-Based), By Application (Large Enterprises And Sme’S), and Region - Global Forecast to 2028

The global compensation software market is expected to be valued at approximately US$ 0.7 Bn in 2019 and is expected to register a CAGR of 7.2%. The report offers in-depth insights, revenue details, and other vital information regarding the global compensation software market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2028. The global compensation software market report has been segmented on the deployment mode, application, and region.

Global Compensation Software Market: Introduction

Compensation software is used for managing salary of employees of companies and organizations, and the solution offers guidelines regarding factors required to be taken into consideration such as designation, job responsibilities, attendance, etc. It helps to increase work efficiency, provides a centralized platform to manage tasks related to employee compensation, reduces paperwork and time required for various processes, provides better planning and target incentive programs, and reduces possibility of manual error.

Global Compensation Software Market: Dynamics

Rising demand for automation of compensation planning process is a key factor expected to drive growth of the global compensation software market. It increases efficiency, reduces paperwork, simplifies processes, and offers a centralized way to manage all tasks related to employee compensation, and reduces administration time and cost while offering maximum efficiency with decreased manual errors.

In addition, increasing adoption of cloud-based compensation software solutions, coupled with technological advancements across various industrial verticals small, medium, and large-scale enterprises is another factor expected to further fuel growth of the target market over the forecast period.

Moreover, growing preference towards deploying solutions by various organizations to automate and streamline various HR-related processes in order to enhance productivity, and improve talent attraction and retention strategies is another factor expected to boost growth of the target market over the forecast period.

However, high investment in research and development for innovation and development of software and services, and high software maintenance cost are major factors expected to hamper growth of the global market over the forecast period.

Ongoing trend observed in the target market is increasing organizations preference towards the use of digital HR technology. Mobile phones are preferred channel for work for employees to adopt digital HR technology in order to update and communicate for tasks such as attendance policies, information about new rules/regulations, meeting reminders, etc., this trend is expected to continue over the forecast period.

Rapidly increasing industrialization in countries such as Qatar and Dubai, coupled with rising need for automated and systematic compensation process can expected to create lucrative opportunities for international players operating in the market.

Global Compensation Software Market Analysis by Deployment mode:

Among the deployment mode segments, currently, the cloud-based segment dominates in the global market in terms of revenue and is expected to maintain its dominance over the forecast period. In addition, the cloud-based deployment segment is expected to register a CAGR of over 7.3% between 2019 and 2028.

Global Compensation Software Market Analysis by application:

Among the application segments, currently, the large enterprises segment dominates in the global market in terms of revenue and is expected to maintain its dominance over the forecast period. The SME’s segment is expected to register a CAGR of over 7% between 2019 and 2028.

Global Compensation Software Market Analysis by Region:

The market in North America is expected to register the highest share in terms of revenue in the global compensation software market in 2018.

In addition, technological advancements and rising adoption of compensation software across various small and medium scale and start-ups in order to automate workflow in various industries.

Moreover, shifting preference towards automated compensation processes instead of manual processes coupled with rising number of start-ups adopting automated workflow solutions is expected to positive impact on the target market. For example, US-based Saba Software Inc. acquired Halogen Software Inc. in order to create the largest independent talent management software providers that are only focused on talent management industry issues and related HCM software capabilities in May 2017.

Moreover, technological advancements and innovative product launches by major players operating in the target market are expected to support growth of the global market in this region. For example, in December 2018, Zenefits launched First Compensation Management App for small- to mid-sized businesses.

The market in Asia Pacific is expected to register highest CAGR over the forecast period, owing to technological advancements, rapid industrialization, and innovative product launches across various countries in this region.

In addition, increasing implementation of cloud-based services in organizations with decentralized working environment is expected to result in higher adoption of compensation software along with advanced features, which is projected to significantly drive revenue growth of compensation software companies in the region.

Moreover, increasing focus towards investment in research and development activities in order to develop and offer smart solutions to organizations to reduce time and efforts associated with complex compensation cycles by fully automating and more streamlined, accurate and auditable process.

Market Segmentation of Global Compensation Software Market:

Segmentation by Deployment Mode:

• On-premise
• Cloud-based

Segmentation by Application:

• Large Enterprises
• SMEs

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa