SHRM defines small businesses as those with less than 350 employees. For these small businesses with an “HR Department of One” the need for HR Services beyond payroll includes most commonly human capital management, labor costing reporting and financial management, time tracking, WFM (workforce management), and expense management. (See more at: http://www.shrm.org/publications/conference-today/articles/pages/hr-departments-of-one.aspx#sthash.yxenTA3D.dpuf).
The Beyond Payroll Market:
- The market for HR Technology in the United States is greater than 100,000 middle market companies ($10 million to $250 million, 50 to 10,000 employees), more than one (1) million SMBs (<$10 million, <100 employees), and the enterprise market, plus government entities.
- Annually more than 200,000 small businesses change their payroll provider (based on public company customer churn / lost retention turnover statistics).
While the payroll market for small businesses with less than 50 employees is highly competitive (“red ocean”) between several different vendor types; there are approximately 150 payroll outsourcing players with significant, meaningful revenues ($10M or greater annual recurring non “pass-through / non-reseller revenues) in the United States. For multinationals and global organizations there are a dozen global payroll service providers with meaningful North American operations.
Based on interviews from this year's annual SHRM and IPPA conferences, the “Beyond Payroll HRTech Platform” for the 2020 Workforce has significant services operating gaps. While the market is underserved, it’s also fragmented and the buying process is increasingly complex. While no private company has dominant market share nationwide; leaders exist regionally and by industry.
Beyond Payroll Links:
Tips for the HR Department of One
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