DEBUG: PAGE=article, TITLE=Our Team,ID=1464,TEMPLATE=analyst

Elizabeth Rennie

Liz is HR Technology and Services Research Director at NelsonHall, with global responsibility for key HR research projects including Cloud-Based HR Transformation, Cloud-Based Benefits Services, HCM Technology, EoR, Global Payroll and The Future of HR, as part of NelsonHall's wider HR Technology & Services practice.

Paychex - Next Generation HCM Technology 2021

Vendor Analysis

by Elizabeth Rennie

published on Jul 29, 2021

Access to this report is restricted to logged in clients with access. Login to get full access

Report Overview:

This NelsonHall assessment analyzes Paychex's offerings and capabilities in Next Generation HCM Technology

Who is this Report for:

NelsonHall’s HCM technology profile on Paychex is a comprehensive assessment of its offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of HCM technology platforms and identifying vendor suitability for RFPs
  • Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the HR technology and services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of Paychex HCM Technology offering, capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization including the location for key centers.

Key Findings & Highlights:

Paychex (NASDAQ: PAYX), founded in 1971 and headquartered in Rochester, NY, is a provider of human capital management solutions, offering HR, payroll, benefits, and insurance services for small- and mid-sized businesses primarily throughout the U.S. and in select countries of Northern Europe. It is currently both the largest 401(k) recordkeeper (by total plans administered, currently >98k plans & >1m plan participants) and the 28th largest insurance agency in the U.S., managing ~$2.6b in premiums annually.

Paychex offers a comprehensive suite of HR technology and managed services; each is enabled through its proprietary HCM technology, including:

  • HR outsourcing services (HR, payroll, benefits)
  • PEO services (co-employment model)
  • Retirement planning services
  • Insurance services.

As of May 31, 2021, Paychex employed ~15k workers across its businesses and supported >710k clients and ~1.7m client worksite employees, providing payroll to an estimated 1 in 12 U.S. private-sector workers.

Paychex Flex is a mobile-enabled, HCM platform technology offering built on a unified framework and delivered as a cloud-native, multitenant solution. The current configuration supports the U.S. and includes both English and Spanish languages. Paychex Flex consists of the following suite of modules, including:

  • HR Records (HRIS)
  • Payroll
  • Recruiting and Applicant Tracking
  • Onboarding
  • Performance Management
  • Learning Management
  • Time and attendance
  • Expense Management
  • Benefits
  • Retirement

Paychex targets small and middle-market clients (generally <5k) for its technology and service offerings. However, its solutions and platforms can scale to support larger middle market clients (>5k). As of May 31, 2021, Paychex supported ~710k U.S.-based small and midsized businesses, with ~80% actively leveraging its Paychex Flex HCM technology. 

Login to get full access:

close