Paychex Strengths, Domain Expertise, and Key Differentiators
Paychex are a human resource (“HR”) software and services company, offering HR, payroll, benefits, and insurance services for small- to medium-sized businesses. Within their human capital management (“HCM”) solutions, they offer a comprehensive portfolio of services and products that allow their clients to meet their diverse HR and payroll needs. Paychex supports small-business clients, reducing the complexity and risk of running their own payroll, while ensuring greater accuracy with up-to-date tax rates and regulatory information. Clients may choose to have Paychex service team handle everything for them, or process payroll themselves utilizing proprietary, robust software-as-aservice (“SaaS”) Paychex Flex platform and SurePayroll SaaS-based products.
Paychex Recent Developments
In October 2021, Paychex has built functionality to assist businesses with the vaccination status tracking of their employees. This capability is being added to the robust list of Paychex technology solutions designed to support businesses as they continue to navigate the impacts of the COVID-19 pandemic. Leveraging self-service to drive accuracy and efficiency, Paychex has enhanced functionality in its Paychex Flex® Document Management tool to help employers who choose to track vaccination status restrict access and maintain confidentiality of information. Through Paychex Flex®, the company’s cloud-based SaaS solution, employers can send notifications to employees requesting that they upload documentation to confirm their vaccination status via Document Management. Immunized employees can upload a digital copy of their vaccination card, while unvaccinated employees can upload ongoing COVID-19 test results. Through Paychex Flex Live Reports, administrators can access a single view of which employees have uploaded either their vaccination card or COVID-19 test results.
In July 2020, As businesses across the U.S. continue adapted to meet the challenges of the COVID-19 pandemic, financial stability and getting back to work remain top of mind. Today, Paychex, Inc., a leading provider of HR, payroll, benefits, and insurance solutions, announced it has enhanced its Paycheck Protection Program (PPP) solution to generate a signature-ready application that simplifies the process of applying for PPP loan forgiveness for customers. Following its initial June release in Paychex Flex, the company’s cloud-based HR technology platform, the Paychex PPP Loan Forgiveness Estimator and Reporting tool has been upgraded to give customers the ability to generate signature-ready copies of their forgiveness application.
In March 2020, Paychex introduced several Paychex Flex enhancements. Headlining this latest release are significant updates to Paychex Integrations, Document Management, the Paychex Flex dashboard, as well as the rollout of a pay-on-demand solution for client employees.
In October 2019, Paychex introduced five new solutions at the 2019 HR Technology Conference & Exposition. Among them is a wearable solution for tracking time worked, real-time payments, pay-on-demand, the next generation of its Paychex Flex intelligence engine, and an integration partner network.
In March 2019, Paychex and Monroe County Sheriff’s Office Partner on Training Program Addressing Violence in the Workplace.
In September 2018, Paychex Launched Learning Management System at HR Technology Conference & Expo. With Paychex Learning, employers can foster a learning environment that provides employees with everything from business acumen to tactical skills to HR compliance.
In May 2018, Paychex launched Paychex Promise, a new subscription-based service that delivers the ultimate peace of mind to business owners: protection against payroll interruptions and solutions to address the routine challenges of running a successful business. The primary offering, Payroll Protection, extends the collection of payroll funds from a business’s bank account by seven days without interruption of service or insufficient fund charges, enabling business owners to pay employees and remit taxes on time even when vacations or invoice delays disrupt cash flow timing.
Paychex Mergers and acquisitions (M&A) Activities
In October 2021, Paychex acquired Flock, a benefits enrollment and administration, onboarding, and human resources information system (HRIS) provider, based in San Francisco. With the acquisition, Paychex is gaining benefits administration software that is aligned with the company’s commitment to driving innovation and delivering a suite of digital services. There will be no disruption to Flock’s service operations or customer relationships as a result of the acquisition. The organization will continue to operate as it does today, and all Flock employees will join Paychex. Terms of the acquisition were not disclosed.
In November 2018, Paychex acquired Oasis Outsourcing Acquisition Corp for $1.2 billion in cash to expand its human resources outsourcing services and enter new markets. The combined companies will increase the number of markets served and significantly expand our PEO (professional employer organization) sales organization.
Paychex Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Paychex applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Paychex and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Paychex Flex platform, SurePayroll, customers.
Ownership: - NASDAQ: PAYX
Number of Employees: 15600
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilites,
Paychex Key Cloud and HCM Applications
Paychex Flex platform, SurePayroll,
Paychex HCM and Cloud HCM Applications Revenues, $M:
|Type/Year||2019||2020||YoY Growth, %|
|Total Revenues, $M||Subscribe||Subscribe||Subscribe|
|HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
|Cloud HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Paychex Revenue Breakdown by Type:
|Type||License||Prof. Services||Hardware||Support & Maintenance||SaaS||PaaS||IaaS||Other (Non Enterprise Application Revenues)||Total|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||100%|
Paychex HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2020 HCM Revenues, By Sub-Functional Markets, $M
Paychex HCM Applications Revenues By Verticals, $M:
Paychex Total and HCM Applications Revenues by Region:
|Region||% of Total Revenues||2020 Total Revenues, $M||2020 HCM Applications Revenues, $M|
Paychex Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
Paychex Customers - Breakdown by Geo, Size, Vertical and Product
No. of Paychex Customers: 680000
No. of Paychex HCM Applications Customers: 680000
No. of Paychex Cloud HCM Customers: x
No. of Paychex Cloud HCM Subscribers: 14 Million
Paychex serves approximately 670,000 payroll clients across more than 100 locations and pays one out of every 12 American private-sector employees. The target market for their integrated HCM solutions is the small- to mid-market space. Within this space, they serve a diverse base of small- to medium-sized clients operating in a broad range of industries located throughout the U.S. and Europe.
Paychex Market Opportunities, M&A and Geo Expansions
Paychex serves more than 1.4 million worksite employees (WSEs) through its HR outsourcing services.
In September 2018, Paychex launched a new web-based learning management system as part of Paychex Flex, the company’s human capital management system. The new employee tool, dubbed Paychex Learning, allows employers to test their employees’ skills through pre-loaded online training modules. Paychex launched Paychex Learning, a web-based learning management system (LMS) that provides employers with a simple and affordable learning tool, - the newest addition to Paychex Flex, as well as a redesign of the suite’s HR solutions.
In May 2018, In recognition of National Small Business Week, Paychex launched Paychex Promise, a new subscription-based service that delivers the ultimate peace of mind to business owners: protection against payroll interruptions and solutions to address the routine challenges of running a successful business. The primary offering, Payroll Protection, extends the collection of payroll funds from a business's bank account by seven days without interruption of service or insufficient fund charges, enabling business owners to pay employees and remit taxes on time even when vacations or invoice delays disrupt cash flow timing.
In December 2017, Payroll and HR services provider Paychex Inc. has launched AccountantHQ, a set of tools, resources, and services aimed at accountants. Paychex recently announced enhancements to its time and attendance offerings with the addition of Paychex Flex Time Essentials, the TrueShift time clock, Paychex InVision Iris Time Clock, and a new advanced scheduling feature within the Paychex Flex Time solution. These moves underscore its desire to expand into different segments of the workforce management apps market.
Paychex Risks and Challenges
Amid its Cloud migration, the evolution of Paychex is predicated on its ability to expand from its payroll bureau heritage to a HCM powerhouse through a combination of well-timed acquisitions and integration development efforts.
Paychex Ecosystem, Partners, Resellers and SI
In May 2018, Paychex partnered with Workplace by Facebook to introduce a social collaboration tool to the company’s HCM suite, Paychex Flex.
In March 2018, Paychex Inc acquired Lessor Group (Lessor), a market-leading provider of payroll and human capital management (HCM) software solutions headquartered in Denmark and serving clients in Northern Europe. Lessor provides services under two models – a SaaS and on-premise suite through its Lessor platform and Microsoft Dynamics; and a do-it-yourself, cloud-based platform branded as Danløn in Denmark and delivered under the following brands in other parts of Europe: Ilohngehalt (Germany), Norlønn (Norway), and Swelön (Sweden).
Paychex Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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