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Paycor - Next Generation HCM Technology 2021
Vendor Analysis
published on Sep 14, 2021
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Report Overview:
This NelsonHall assessment analyzes Paycor's offerings and capabilities in Next Generation HCM Technology
Who is this Report for:
NelsonHall’s HCM technology profile on Paycor 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 Paycor 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:
Headquartered in Cincinnati, Ohio, Paycor is a publicly-traded provider of cloud-based HCM technology and managed services for small and midsized businesses.
Paycor was founded in 1990 as a payroll services company, initially delivering its services on licensed 3rd party software. In 1999 Paycor shifted away from this model, launching Perform Payroll, which set the foundation for its proprietary Paycor HCM platform it leverages exclusively to deliver its managed services offering.
Paycor expanded its regional payroll coverage and delivery capability throughout the U.S. by acquiring Pay Day of America in 2004 and later acquired Checkdate Solutions in 2006. Although Paycor has primarily developed its cloud-based HCM platform and managed services capability organically, it has made select acquisitions to advance its technology offering, including:
- Newton Software (2015): Applicant Tracking System (ATS)
- Ximble (2019): Time, attendance and advanced scheduling technology
- 7Geese (2020): Performance Management.
In July of 2021, Paycor launched an IPO, taking the company public, trading on the NASDAQ under the ticker symbol 'PYCR.'
Paycor exclusively targets small and middle-market buyers based in the U.S., generally clients with 10 to ~1k employees, with its ideal client size ranging from 50 to 750 employees. However, its HCM technology and services are increasingly being adopted by clients with larger employee volumes.
Today, Paycor's HCM technology and managed services offering supports >28k small and midsized clients and ~2m users throughout the U.S.