The present overview of HCM and payroll software and service providers with a focus on the DACH region serves as a guide for companies planning to implement a new HR software system.
For many clients, the German-speaking market for HCM and payroll solutions is difficult to navigate. Since providers do not use a standardized vocabulary to describe their software, customers searching for specific functionalities often need to tediously browse through numerous product pages. 

In developing the LKPU HCM and Payroll Software and Service Provider Overview, we were guided by the questions identified in LKPU People, Issue 1 (link) as key criteria in the HR software selection process: 

• Is the company looking for a full-suite provider or a patchwork solution? 

• Should it be delivered by a global or a local HCM provider? 

• Is the goal to outsource payroll as a managed service or to use a software-as-a-service (SaaS) solution? 

Two important questions were deliberately left aside: 

1. Since the HCM market is increasingly shifting from traditional on-premise solutions to the cloud, we did not differentiate between in-house systems and SaaS models. In fact, on-premise systems were not included in our analysis – even though we anticipate a potential revival of on-premise models due to rising security concerns. One reason for this decision is the announcement by major HCM providers such as SAP and Oracle to phase out their on-premise offerings in the coming years. 

1. We also did not consider whether implementation is carried out directly by the provider or through a partner. For clients, this aspect is generally irrelevant in the initial evaluation phase. It typically becomes a consideration only after a shortlist of potential solutions has been established.