According to a report by Beroe Inc, the global market share of payroll services is expected to grow at a steady CAGR of 4.4%. It was also reported that by the year 2022, payroll services are poised to become an 85.6 billion USD industry.

The payroll outsourcing industry’s growth, it presents opportunities for entrepreneurial opportunities in the field. New organizations can start and grow into this billion-dollar industry. As is the case with any field, there will always be competition. Payroll outsourcing services have to constantly set themselves apart from their counterparts in the same industry. Here are some strategies that successful payroll outsourcing services use to stay ahead of their competitors.

Client Relationships

Relationships with clients and the type of relationships that payroll companies share with their clients are important for long-term growth. In a recent survey, Thomson Reuters in 2017 surveyed 18,000 CPAs and found that 38% of accounting firms wanted to manage payroll in-house for their clients, while 32% offered payroll through partnering or outsourcing. Understanding client needs and requirements is key to differentiating a firm from the competition.

Understanding the Competition

In any sector or industry, regardless of the presence, all concerns will face competition. Competition may seem an obstacle, but it can be a learning experience for new payroll outsourcing or HR payroll services. Innovative companies can use the number of competitors in their field, study them, and use it to improve their products and services.

Versatility

Versatility is a key component that could set most payroll outsourcing services apart. The range of services and the ease of access to payroll services would make services easier for clients to use as per their requirements.

Knowing Your Services

Knowing the extent of one’s payroll outsourcing services and the potential limitations will allow the concern to look at areas of improvement. This will also enable the firm to work within its limitations and handle more workloads.

Multitasking

The ability to focus on various tasks and consistently deliver results is a hallmark of successful payroll service. Multitasking for various clients can lead to client organizations reducing costs to client companies with more time and resources for them to allocate to other core areas. This raises the brand of the payroll outsourcing concern and will enable them to take on more clients and raise their business profile.

Ethics

In any competitive industry, there may be entities that do not conduct business ethically. Staying true to an organization’s core values and ideals and those set forth by regulatory bodies in the name of compliance will ensure that your brand will gain a favorable perception in the eyes of the public. Investors and clients will find it more convenient to approach organizations that conduct their business fairly and ethically

Data Security

Most payroll concerns that manage employee payroll systems can ensure that their systems are up to date and secure. Given that these systems handle employee, transaction, and bank records, organizations must take extra effort to make sure that all data is protected. Data security is both a major concern and can be viewed as a USP while pitching to a new client.

Innovation and Improvement

Technology is constantly seeing innovation, and the HR tech market is no exception. For instance, according to PwC’s findings, the HR tech market alone is worth 148 billion USD. Therefore, organizations have to constantly evolve and adapt, not just in terms of products and services but also in how they can effectively integrate HR technologies into their strategies. This will allow for a larger range of services that client companies can choose from.