The global HR benefits and administration services market was valued at almost $7 billion in 2015 and is expected to surpass $9 billion by 2020.
Procurement market intelligence analysts have announced its latest market research report on HR benefits and administration services for the period 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global HR benefits and administration services market during the forecast period. Some of the top vendors listed in this industry analysis include ADP, Aon Hewitt, ACS, Towers Watson, and Mercer.
In terms of geographical analysis, the Americas is the largest shareholder in the global market, with a market share of around 44%. Increased number of employees and growth in corporate profit are the major factors driving the growth of the market in this region.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “Service providers in the market are focusing on developing user-friendly interfaces such as web portals and mobile applications to satisfy buyers’ needs. They are also adopting various methods such as employee communication services, data analytics, HR service centers, and total absence management to differentiate their offerings from that of their competitors. Besides, suppliers are using well-documented, service level agreements to understand the business requirements of buyers.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Increased focus on retaining and attracting talent
Employers are consistently working towards improving their benefits strategies through the use of benefits technology. Enhancing benefit strategies in an organization makes it possible for employers to recruit talented candidates as employee benefits is an important aspect in engaging employees. This increased focus on retaining and attracting talent is expected to reflect positively on the HR benefits and administration services market during the forecast period.
Increasing competitiveness of the job market
Several industry sectors are facing a shortage of skilled workforce. To fulfil their requirements, many organizations rely on the job market to source relevant profiles. However, individuals looking for jobs, especially for the job roles that are in demand, seek for good employee benefits apart from a good salary package. The growing dependence of these firms on the job market is driving the HR benefits administration industry as players are looking to offer competitive packages to attract employees Need to reduce administrative complexities and costs
The introduction of innovative technology such as cloud-based systems and flexible benefits technology makes it possible for buyers reduce administrative complexities and gain high employee satisfaction. Furthermore, the use of such advanced technology eliminates the need for a dedicated benefits administration to further reduce administrative costs. The use of HR software solutions can result in significant cost savings for employers.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global HR Benefits and Administration Services – Procurement Market Intelligence 2016.’
