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Paychex - Payroll Services 2023
Vendor Analysis
published on Aug 29, 2023
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Report Overview:
This NelsonHall vendor assessment analyzes Paychex's offerings and capabilities in Payroll Services.
Who is this Report for:
NelsonHall’s Payroll Services profile on Paychex is a comprehensive assessment of Paychex’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Payroll Services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Payroll Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Paychex’s Payroll Services offerings and 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 of delivery centers.
Key Findings & Highlights:
Paychex (NASDAQ: PAYX), founded in 1971 and headquartered in Rochester, NY, is a provider of integrated human capital management solutions built on a payroll foundation, offering HR, 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 the largest 401(k) recordkeeper (by total plans administered, currently ~100k plans & ~1.3m plan participants) and the 28th largest insurance agency in the U.S., managing ~$3bn 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.
The company currently employs ~16k workers and supports ~740k clients, mainly SMEs (organizations with up to 1k employees). It pays ~11m employees, handling payments to every 12th private sector employee in the U.S. Its U.S. proprietary technology is Paychex Flex. It supports ~3m monthly users on a hybrid cloud infrastructure offering HR and payroll functionality.