At the close of 2019, HR tech was estimated to be a $40 billion-dollar market, with over 4,000 providers in the space. The growth in HR tech over the last ten years was fueled largely by the digital transformation underway in many global enterprises. These HR tech solutions help companies pay, hire, manage, and train people at scale while giving leaders oversight into costs, productivity, and performance.

Small and medium-sized businesses (SMBs), though, face another reality. While SMBs account for nearly half of all payroll expenditures in the United States, their cost concerns and unique needs have made them slower to adopt the kind of HR systems that larger companies take for granted. A 2018 study by Capterra found that 91% of SMB leaders said HR technology was critical or beneficial to their business, yet only 57% were currently using it. (Note the survey solicited feedback from more than 700 U.S.-based organizations with annual revenues of less than $100 million.)