The global compensation software market to grow at a CAGR of 8.77% during the period 2017-2021.
The report, Global Compensation Software Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
One trend in the market is rise in demand for integrated HCM solutions. End-users prefer vendors that provide integrated and converged software suites, as opting for different software may lead to integration issues. Software suites from the same vendor have better integration ability and support other functions. As the increased complexity of network infrastructure has made integration an important buying criterion, solutions with better integration are finding higher adoption.
According to the report, one driver in the market is demand for automated compensation management processes. The demand for automated compensation management process is one of the major drivers of the market. The automation of compensation planning helps enterprises to simplify processes, reduce paperwork, and offer a centralized place for managing all tasks, which saves the administration costs and time. The implementation of software is gaining prominence among all kinds of enterprises because it helps them gain a greater transparency into rewards and performance of employees and enables enterprises to perform total compensation analysis.
Further, the report states that one challenge in the market is high implementation and maintenance cost. The high cost of deploying on-premises compensation software is one of the major challenges in the market for SMEs and start-ups. The price of the compensation software includes the cost of implementation, training, maintenance, software licensing, system design, and customization. Apart from software licensing, SMEs and start-ups enterprises also need to invest in the proper implementation of the software and training of the employees to use the software application. Post implementation, the software requires continuous upgrading to keep up with the market trends.