SaaS-Based Human Resource Market

SaaS-Based Human Resource Market Highlights

The global SaaS-based human resource market is expected to cross a value of USD 1001.74 billion by the end of 2032. The market was valued at USD 319.54 billion in 2023 and is expected to expand at a CAGR of 12.7% between 2024-2032.

• Over the mid-term, the growing digital transformation in HR management is the primary factor anticipated to drive the global SaaS-based human resource market.
• The growing concerns for data security is a major factor to challenge the market growth.
• The North America SaaS-based human resource market is projected to dominate the global market.

SaaS-Based Human Resource Market Outlook

SaaS-based Human Resource (HR) is a Human Resource Management System (HRMS) or Human Capital Management (HCM) solution that is usually delivered as Software as a Service (SaaS) business model. The cloud computing model eliminates the need for organizations to install, maintain, and manage the software on their own infrastructure.

One of the most important factors predicted to drive the growth of the SaaS-based human resource market is the growing digital transformation in HR management among business organizations. The ongoing digital transformation across industries has led to a shift in HR management practices. Organizations are adopting SaaS-based HR solutions to streamline and automate HR processes, from recruitment and onboarding to performance management and employee engagement. Hence, the growing need for an efficient and digital HR ecosystem is therefore expected to contribute to the growth of the market in the coming years. Talentsoft SA, Cezanne HR Ltd., and cloudPay, Inc. are some of the significant parties in the global market for SaaS-based human resource.

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SaaS-Based Human Resource Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global SaaS-based human resource market are:

• Greater Scalability and Flexibility Associated with SaaS-Based Human Resource Solutions: Due to the greater scalability and flexibility associated with SaaS-based human resource solutions, it makes the solution suitable for organizations of different sizes. As a result, businesses can adapt and expand to these solutions without the need for massive infrastructure changes. Such an important benefit associated with these solutions is one of the major factors predicted to drive the growth of the market in the coming years.
• Rapid Need for Data Analytics and Insights Among HRs: With the growing focus on data analytics and the rapid need for insights amongst different business processes, the need to adopt solutions that can provide all of these information at ease, is on the rise. Data-driven decision-making in areas such as talent acquisition, workforce planning, and performance management is becoming crucial for organizations as it helps them to take proper decisions for their business growth. Such a factor is hence expected to boost the growth of the market in the coming years.

Which Probable Factors Could Hamper the Growing SaaS-Based Human Resource Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of SaaS-based human resource are:

• Growing Concerns for Data Security: Organizations may express concerns about the security and privacy of sensitive HR data stored in the cloud. Although, there had been several advancements regarding security of data for these applications, yet, the concern for a compromise in data security and non-compliance with data protection regulations is always present, which is expected to restrain the market growth.
• Surge in Concerns About Vendor Reliability: Organizations globally are hesitating to fully embrace SaaS-based HR solutions, despite of the growing digitalization amongst businesses. This is majorly due to the surge in concern about the reliability and stability of SaaS vendors. Questions about the vendor's financial health, long-term viability, and commitment to ongoing support and updates may influence decision-makers' choices, which in turn, is expected to limit the market growth.

How is the Global SaaS-Based Human Resource Market Segmented?

Our experts at KD Market Insights have segmented the global SaaS-based human resource market as:

What are the Probable Factors Influencing the North America SaaS-Based Human Resource Market Forecast?

The North America SaaS-based human resource market is majorly driven by the broader acceptance and adoption of cloud technology across businesses, along with the increasing adoption of remote work and surge in prevalence of flexible work arrangements. Besides this, the increasing presence of several market players in the region is also poised to promote the market growth in North America.

As per our analysts at KD Market Insights, the following five players lead the North America SaaS-based human resource market growth:

• Workday, Inc.
• ADP, LLC
• Oracle Corporation
• Ultimate Software
• Cornerstone OnDemand, Inc.

Which Key Players Top the Global SaaS-Based Human Resource Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global SaaS-based human resource market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with SaaS-based human resource market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global SaaS-based human resource market share:

• Talentsoft SA
• Cezanne HR Ltd.
• cloudPay, Inc.
• Oracle Corporation
• Benrekia.com
• SAP SE
• Kronsos, Inc.
• Ceridian HCM, Inc.
• ADP, LLC
• Ascentis Corporation
• The ultimate Software Group, Inc.
• Halogen Software Inc.
• Workday Inc.
• Kenexa Corp.
• Apprenda

What are the Recent Developments Observed in the SaaS-Based Human Resource Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global SaaS-based human resource market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Unicommerce eSolutions Pvt. Ltd. stated that it has increased its hiring rate in 2023 by about 50% to reach 150 team members.

Further, Ceridian HCM, Inc. announced that it has launched an initiative known as ‘A Dayforce Payroll’ that would give an employee the access to the wages they earn when they need them.