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Paychex - Payroll Services 2022
Vendor Analysis
published on Sep 09, 2022
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Report Overview:
This NelsonHall vendor assessment analyzes Paychex's offerings and capabilities in Payroll Services.
Who is this Report for:
This profile is a comprehensive assessment of Paychex's Payroll Services 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 locations.
Key Findings & Highlights:
Paychex (NASDAQ: PAYX), headquartered in NY, provides human capital management solutions, offering HR, payroll, retirement, and insurance services for small and mid-sized businesses primarily throughout the U.S. and in select countries of Northern Europe. Paychex has an employee base of ~16k employees and brings 50 years of industry experience. It offers a comprehensive suite of HR technology and HR and payroll services; each is enabled through its proprietary HCM technology, including:
- HR outsourcing services (HR, payroll, benefits)
- PEO services (co-employment model)
- Retirement planning services, managing 401(k) record keeping with ~100k plans and ~1m plan participants
- Insurance services, with ~$2.6b in insurance premiums annually across ~205k customers, mainly related to health and benefits insurance and workers compensation insurance.
Paychex supports ~630k payroll clients, mainly SMEs (organizations with up to 1k employees), pays ~12m employees, and handles payments to every 12th private sector employee in the U.S. Its U.S. proprietary technology is Paychex Flex, which supports ~3m monthly users on a hybrid cloud infrastructure offering HR and payroll functionality.