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Rising demand for employee management solutions, and growing need for cost-cutting measures amidst the pandemic will drive robust growth for the employee benefits administration software sales market. The pandemic, and lockdowns forced companies to rethink their cost-structures. Moreover, this development will likely stay over the next few years, as new virus strains, and delays in vaccination drives will continue to pose challenges for the global economy in the near future. Furthermore, as businesses make move to shift to a knowledge-based economy, the employee-benefits ratio keeps changing. This will likely step up demand for the products in the employee benefits administration software market.
Large Organizations Will Likely Occupy Lion’s Share of Revenues in the Global Market
The global employee benefits administration software sales market report will cover two key segments including large organizations, and small and medium sized organization. The large organization will likely occupy the lion’s share of total revenues, not just due to the size, but also due to increasing attrition rate at big firms. Research estimates this number to be as high as 27.9% across industries. The number has been rising steadily since 2015. According to most employees surveyed, the negative workplace remained the major cause of employee turnover, with most employee holding the management accountable for their departure. Moreover, it is well understood that bonuses, and other benefits are good ways to keep employees happy. For example, Kum & Go, a convenience store chain in the US experienced turnover rates as high as 150% a year ago. The company searched for desperate measures to reduce turnover rates. In their attempt to allay the situation, the company offered spot bonuses, and leaves on birthday to calm the situation. The company witnessed instant result, thanks to convergence of technology, and attractive benefits offered. The employee rate immediately reduced to less than 90%, not a great fit, but a game-saving one for the company.
It is estimated that employee quitting can cost a company nearly 33% of the individual’s salary in replacement. Moreover, these costs often don’t take into consideration the productivity loss, and other indirect costs like the loss of experience. The eroding loyalty for large organizations, the rising importance of salaries, and benefits for retaining employees, and complex nature of cost-structures will drive major growth for the global employee benefits administration software sales market in the near future.
North America Will Remain Key Region in the Global Market
Among regions, the global employee benefits administration software sales market will likely register strongest growth in North America. The burgeoning development among tech giants, changes in regulations like restrictions on H-1B visas, and growing demand for skilled technical labor will lead to strong growth of the market. The market remains a bright horizon for the software products as tech giants continue to come up with innovative ways to provide employees benefits. For example, recently Facebook came up with a incentive scheme for female employees to freeze their eggs, and store for delayed pregnancies. The scheme would incur major costs for Facebook, and also provide life-changing decisions for female employees. The advancement of technology, the knowledge economy, and growing demand for employee retention promises major growth for players in the employee benefits administration software sales market.
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