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 2014. This report outlines the trends we uncovered.

1. Software Advice BuyerView:
Payroll Software Report
Insight into today’s software buyer

2. 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 2014. 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.
Abstract

3. 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%
Most Buyers Looking to Replace Commercial Payroll Software
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
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%
11%
84%
Integrated suite only
Best-of-breed
Multiple products OK

5. 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%
Buyers Seeking New Software to Increase Efficiency
Percent of sample
Many buyers (31 percent) were seeking a new payroll software solution to increase
organization and efficiency in their business.

6. Reporting
Employee self-service
401k / insurance tracking
Direct deposit
Tax forms
Use at multiple locations
0% 10% 20% 30% 40%
Buyers Want Reporting and Self-Service Features
Percent of sample
The most requested payroll specific software features were reporting and self-
service, specified by 33 and 31 percent of buyers, respectively.

7. Majority of Buyers Prefer Web-based Deployment
Well over half of all payroll software buyers noted that they would prefer their new
software purchase be a Web-based system.
29%
3%
69%
Web-based
On-premise
Not determined

8. Most Buyers Wish to Purchase a New System Within 3 Months
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.
8%
11%
24%
32%
25%
<1 month
1-3 months
3-6 months
6-12 months
Other

9. Demographics: Prospective Buyer Size by Annual Revenue
This report includes only small business payroll software buyers. In fact, 70
percent of companies generated $25 million or less in annual revenue.
14%
15%
39%
26%
5%
Less than $1 million
$1 to $5 million
$6 to $25 million
$26 to $50 million
$51 to $100 million

10. Demographics: Prospective Buyer Size by Number of Employees
The majority of these small to mid-sized businesses (61 percent) employed 250
employees or fewer.
6%
14%
18%
28%
15%
18%
1-50
51-100
101-250
251-500
501-1,000
1,001-2,500
2,501-5,000
10,001+

11. HR manager
HR director
Vice president
Owner
Accountant
Administrative assistant
Payroll administrator
Payroll manager
HR specialist/coordinator
HR generalist
0% 5% 10% 15%
Demographics: Prospective Buyers by Job Title
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.

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13. Software Advice is a trusted resource for software buyers. The company's website,
www.softwareadvice.com, 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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