What percentage of companies use HRIS benefits software (such as Workday) versus benefit administration firms (such as Bswift)?

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What percentage of companies use HRIS benefits software (such as Workday) versus benefit administration firms (such as Bswift)?

Hello! Thanks for your question about the percentage of companies that use HRIS benefits software versus benefit administration firms. The short version is that after searching extensively through corporate websites, forums and review sites, trusted media sources, and industry reports, I've determined that the information you've requested is not available. The main reasons for this is that companies do not publicly avail their information, no third-party/industry precompiled information is available in this regard, and there is not enough information to make a reliable estimate, and then provide the type of industry breakdown you're looking for. However, I was able to find information on the market size and growth of the industry, as well as some information on industry segments. You'll find a deep dive of my research below.

METHODOLOGY
To respond to your request, I began with an advanced search of online sources such as industry reports and other market research, to determine if the information you're looking for is readily available in any of these sources. After analyzing the sources uncovered during this search, I determined that the information was not provided in any existing market research. What I did learn about during this process was that demand in the Benefit Administration Services market would be hurt over the coming 5 years from 2017. This is due to industry operators facing competition from insurance carriers and self-insuring companies, especially those that manage benefits internally, and therefore require no assistance from any third-party administrator. I found a few lists/rankings of industry players (firms and software) within industry reports, but there was no information on the percentages of companies that use HRIS benefits software versus benefit administration firms, and researching each company individually is not feasible, given the size of the US market (29,043 businesses).

Next, I tried to manually determine how the market breaks down using some different sources and search techniques. Sources like the Bureau of Labor Statistics and OECD often have data on specific industries, but their data would not be specific enough to break down an industry the way you're hoping for. Hoover's is another great source for looking into the size and break down of specific industries, but the database does not include many Benefit Administration Services (firms and software) specialties in its industry list. These and other similar sources were all inconclusive due to a lack of specific information.

HELPFUL FINDINGS
According to IBISWorld, the Benefit Administration Services market has a total revenue of $56 billion for the year 2016. The market experienced an annual growth of 3.1% from 2011 through 2016, and had employed a total of 711,836 employees in 277,490 businesses. However, general demand in the Benefit Administration Services market would be hurt over the coming 5 years from 2017. This is due to industry operators facing competition from insurance carriers and self-insuring companies, especially from companies that manage benefits internally, and therefore require no assistance from any third-party administrator.

The Benefit Administration Services market, is also known as the Human Resources & Benefits Administration market. This market is reported to continue showing positive performance over the next 5 years leading to 2021. Industry growth will, however, dwindle slightly with falling corporate profits that follows postrecessionary boom. The Human Resources & Benefits Administration market has a low concentration level as the four major players in the market control less than 5% of the market.

The HR and Payroll industry enjoyed a revenue of $7 billion in 2016. The industry's annual growth rate from 2011-2016 was 6.0%. Industry employment was at 9,454 and the total number of businesses that make up this industry was 198, in 2016. According to IBISWorld, two factors driving growth here includes:
1. Cloud-based software products are continuing to be in high demand. Businesses are replacing their core infrastructure software.
2. Business are reinvesting more money into human capital or talent management software products. This brings their recruitment, compensation, payroll, workplace planning, and training management into one integrated platform.

The companies with the highest share in this space are ADP, Intuit, Oracle, SAP, and Ultimate Software. Given that the HR and Payroll software market is growing faster (at 6%) than the overall Benefit Administration Services market (at 3.1%), it's indicative that more companies are embracing end-to-end HRIS benefits module (from ADP, Intuit, Oracle, SAP, and Ultimate Software, etc) in managing their benefit administration activities more than they use Benefit administrators firms.

CONCLUSION
To wrap up, after searching extensively through corporate websites, forums and review sites, trusted media sources, and industry reports, I've determined that the information you've requested is not available. The main reasons for this is that companies do not publicly avail their information, no third-party/industry precompiled information is available in this regard, and there is not enough information to make a reliable estimate that provides the type of industry breakdown you're looking for. However, I was able to find information on the market size and growth of the industry, as well as some information on industry segments. A key findinbg being that the HR and Payroll software market is growing faster (at 6%) than the overall Benefit Administration Services market (at 3.1%), making it indicative that more companies are embracing end-to-end HRIS benefits module (from ADP, Intuit, Oracle, SAP, and Ultimate Software, etc) in managing their benefit administration activities more than they use Benefit administrators firms.

Thanks for using Wonder!
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