Overview:

Compensation software is the best way to ensure that a company provides a fair, competitive and balanced pay package for employees. This can help increase retention and attract top talent. Keeping track of global pay requirements can be difficult, whereas the right software will make it easy. It will provide a central dashboard that shows all the data needed to keep the global team informed, whether its salary increases or profit sharing in a different country. A good compensation management solution will allow to build merit and bonus pay based on employee performance. This can save time and money and make employees feel appreciated. It will also provide the ability to manage award programs, bonuses, long-term awards and total reward statements all from one centralized system. This helps streamline payroll and eliminates the need for manual spreadsheets or emailing a file to a reviewer.

Market Dynamics:

Growing partnerships among key players are estimated to augment growth of the global Compensation Software Market over the forecast period. For instance, Pendella Technologies and Execupay announced their partnership in November 2021. This partnership will empower small business owners to offer their employees most crucial financial security without incurring any additional demands. Moreover, rising concerns regarding data privacy and security are anticipated to restrain growth of the global Compensation Software Market over the forecast period.

Impact of COVID-19:

COVID-19 was first reported in 2019 in China, and later on it was transmitted to more than a 100 nations. The pandemic affected several sectors of the society. All businesses were hampered owing to the strict regulations imposed during the pandemic by government authorities in many regions. The pandemic also had a huge impact on the way organizations work. Several companies started working from home and many had to shut down owing to huge loses faced by them. Several individuals lost their jobs during the pandemic as many companies were cutting down on their workforce. This hampered the growth of the global compensation software market during the pandemic.

Key Takeaways:

The global compensation software market is expected to witness high growth, exhibiting CAGR of 8.8 % over the forecast period, due to growing acquisitions by key players. For instance, Cloudsnap Inc., was acquired by Paylocity, in January 2022. This acquisition will help in making manual data exchange procedures automated and also offer users with a cutting-edge user experience.

North America is anticipated to witness significant growth in the global compensation software market over the forecast period, owing to growing number of enterprises in manufacturing, IT services, BFSI, and growing mergers and acquisitions by key players.

Major players operating in the global compensation software market are MorganHR, SAP SE, Cornerstone, Execupay, Decusoft, ADP, Inc., Payscale, Inc., UKG, Inc., CWS Software, and Workday, Inc.