Among the top reasons for that potential is a boom in the entrepreneurial spirit, as evidenced by the latest figures from the Barnes Economic Industry report. Researchers say the number of US businesses will grow 2.4 percent in 2018 – the highest projection in four years. And if current trends continue, many of those entrepreneurs will be far more likely to outsource payroll and other human resources operations rather than handling them in-house, allowing them to focus instead on their core offerings.
A major driver in the outsourcing trend is the ever-increasing complexity of payroll legislation, regulation and taxation. Besides new wage requirements taking effect in many states over the next few years, several executive orders recently signed by President Trump may have additional impacts on the payroll and human resources fields. These include an order directing the treasury secretary to review the 2010 Dodd-Frank financial regulatory law, which may have implications on payroll when it comes to bonuses and pay ratio disclosure requirements, particularly at financial institutions and publicly traded companies; and another order that directs federal agencies to ease certain regulatory burdens of Obamacare.
Payroll and human resources providers that stay on top of all such factors, both domestically and internationally, and develop a reputation for proactively bringing needed solutions to existing and prospective clients will undoubtedly be sought after.
The continuing trend toward cloud computing also bodes well for providers offering end-to-end payroll and human resources solutions. A recent Forbes article revealed that spending for cloud computing is projected to increase from $67 billion in 2015 to $162 billion in 2020 – a compound annual growth rate of 19 percent. Cloud computing offers a shot at a more even playing field for smaller providers, allowing them an opportunity to compete with larger, more established providers. Because most new cloud-based platforms offer usage-based payment plans, smaller payroll vendors are afforded the ability to utilize the same tools as their bigger competitors.
“The Cloud is a game changer, not a fad or just a buzz word,” Bask Iyer, Chief Information Officer and Executive Vice President of Dell Technologies and its VMware, Inc., a subsidiary that provides cloud computing and platform virtualization software and services. “Cloud makes resources that were once limited to major enterprises not only accessible, but also affordable [to smaller businesses].”
For more in-depth information on the projected growth of the payroll industry and how you can benefit, don’t miss Apex HCM’s upcoming White Paper, Why Now is a Great Time to be in the Payroll Industry! Based in Atlanta, GA, Apex HCM is a market leader in licensing cloud-based payroll and human resources software technology. More than 250 payroll service firms and vendors throughout the United States and Guam use Apex’s technology and its customizable, comprehensive suite of related products and services to provide unmatched solutions for clients in vast array of fields.