Paychex - Payroll Services

Paychex - Payroll Services

Who is This Vendor Assessment For?
NelsonHall’s Payroll Services profile on Paychex is a comprehensive assessment of its offerings and capabilities, designed for:
• Sourcing managers monitoring the capabilities of existing suppliers of managed 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 HR and payroll technology and services sector.

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 >91k plans & >1m plan participants) and the 22nd largest insurance agency in the U.S., managing ~$2.5b 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.
Paychex targets small and lower middle market clients (generally <5k) for its managed payroll services offering. However, its solutions and platforms can scale to support larger middle market clients (>5k).

Paychex offers both partial and fully managed payroll services solutions. Beyond its HR and payroll services offering, Paychex also offers a range of add-on complementing solutions targeted to small and medium-sized business owners. The solutions provide a ""one-stop-shop"" for small business administrative needs

As of May 31, 2020, Paychex employed ~16k workers across its businesses and supported >680k clients and >1.4m client worksite employees, providing payroll to an estimated 1 in 12 U.S. private-sector workers.

Scope of the Report
The report provides a comprehensive and objective analysis of Paychex payroll services 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 of delivery locations.

1. Background
2. Revenue Summary
3. Key Offerings
4. Delivery Capability and Partnerships
5. Target Markets
6. Strategy
7. Strengths & Challenges
7.1. Strengths
7.2. Challenges
8. Outlook

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings