Software Advice BuyerView: Payroll Software Report. Insight into today s software buyer
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1 Software Advice BuyerView: Payroll Software Report Insight into today s software buyer
2 Abstract Over the years, we ve spoken to thousands of companies considering new payroll software. We recently analyzed a random sample of 385 of these interactions taken from This report outlines the trends we uncovered. Most small-business buyers (67 percent) are seeking to replace their current payroll software solution. A clear majority of buyers (84 percent) would prefer to purchase a payroll solution as part of an integrated human resources (HR) software suite. A Web-based deployment model for payroll software is by far the most preferred, specified by 69 percent of buyers.
3 Most Buyers Looking to Replace Commercial Payroll Software Commercial payroll software ADP Outsourced payroll Paper/manual methods Quickbooks Accounting software Proprietary payroll software Nothing Non-payroll software Other 0% 10% 20% 30% 40% Percent of sample Most buyers wanted to replace their current commercial payroll solution. In fact, 37 percent of buyers noted they were using some form of commercial payroll software.
4 Buyers Prefer Integrated Suites 11% 5% Integrated suite only Best-of-breed Multiple products OK 84% The majority of buyers wanted their payroll solution as part of an integrated software suite meaning they wanted payroll in addition to other HR modules.
5 Buyers Seeking New Software to Increase Efficiency Increase organization/efficiency Current is missing features Modernize/go electronic Current doesn t support growth Need better integration Consolidate systems Reduce costs Improve accuracy Current has poor customer support Current is cumbersome/complex 0% 10% 20% 30% 40% Percent of sample Many buyers (31 percent) were seeking a new payroll software solution to increase organization and efficiency in their business.
6 Buyers Want Reporting and Self-Service Features Reporting Employee self-service 401k / insurance tracking Direct deposit Tax forms Use at multiple locations 0% 10% 20% 30% 40% Percent of sample The most requested payroll specific software features were reporting and selfservice, specified by 33 and 31 percent of buyers, respectively.
7 Majority of Buyers Prefer Web-based Deployment 29% 3% 69% Web-based On-premise Not determined Well over half of all payroll software buyers noted that they would prefer their new software purchase be a Web-based system.
8 Most Buyers Wish to Purchase a New System Within 3 Months 24% 11% 8% 25% <1 month 1-3 months 3-6 months 6-12 months Other 32% For most buyers in our sample, they begin doing research only when they have decided to purchase and implement their new software in the near future.
9 Demographics: Prospective Buyer Size by Annual Revenue 14% 5% 15% 26% Less than $1 million $1 to $5 million $6 to $25 million $26 to $50 million $51 to $100 million 39% This report includes only small business payroll software buyers. In fact, 70 percent of companies generated $25 million or less in annual revenue.
10 Demographics: Prospective Buyer Size by Number of Employees 14% 18% 6% 18% 15% ,000 1,001-2,500 2,501-5,000 10, % The majority of these small to mid-sized businesses (61 percent) employed 250 employees or fewer.
11 Demographics: Prospective Buyers by Job Title HR manager HR director Vice president Owner Accountant Administrative assistant Payroll administrator Payroll manager HR specialist/coordinator HR generalist 0% 5% 10% 15% Percent of sample The most common job title for buyers seeking new payroll software was HR manager. However, more senior positions were also common among buyers.
12 Learn More About Payroll Software Read Report Read the full report Get Free Quotes Get free price quotes on top payroll software Get Free Demos Get unbiased reviews & free demos on top payroll software
13 @SoftwareAdvice /company/software-advice Software Advice is a trusted resource for software buyers. The company's website, provides detailed reviews, comparisons and research to help organizations choose the right software. Meanwhile, the company s team of software analysts provide free telephone consultations to help each software buyer identify systems that best fit their needs. In the process, Software Advice connects software buyers and sellers, generating high-quality opportunities for software vendors.
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