There’s good news for payroll service bureaus looking to boost their client bases and revenues. According to a recent report by Raleigh, NC-based procurement intelligence firm Beroe, Inc., the global market for payroll outsourcing is expected to grow at a CAGR (compound annual growth rate) of 4.4 percent until 2023. This growth rate reflects an increase in market value from $16.4 billion in 2015 to upward of $22 billion by 2020. North America alone already holds a $10.28 billion share – nearly twice that of Europe, the second leading region in the payroll outsourcing market – and all indications point to continued, significant growth.
Beroe’s report, compiled via interviews with experts with at least 20 years of payroll industry experience, interactions with payroll services buyers and input from supply chain partners, reveals one primary driver in the growth – Cloud-based payroll software systems that further industry standardization while also offering client-driven customization.
The report looked at four key performance indicators for the most popular payroll software systems:
- Accuracy of pay stubs
- Timely processing of payrolls
- Tax compliance
- Cost efficiency
Researchers found that the best cloud-based payroll software platforms benefit employers in multiple ways. First, they result in an average 20 percent cost savings by eliminating on-site equipment, space and infrastructure required by offline systems, reducing the number of staff necessary to complete payroll-related tasks and making payroll processing more efficient. They also automate and assure compliance with ever-changing state and federal regulatory legislation, eliminating a significant time and effort burden and minimizing legal and financial risks for employers. Plus, they boost employee satisfaction by allowing customizable levels of employee access to information on pay, benefits, employment-related documents, etc. while ensuring privacy and protection of data.
Beroe’s full report can be purchased here.
In choosing the right service for your payroll business, you’ll want to consider adding or upgrading to proven, top-notch cloud-based solutions. Call 878-645-3584 or request a demo of any of Apex HCM’s full suite of customizable products and services today.