Paycom Among Cloud Top 500

Paycom Strengths, Domain Expertise, and Key Differentiators

Paycom's solution is based on a core system of record that contains payroll and HR information in one convenient database, thereby reducing costs and eliminating the need for multiple software products and vendors and the 2 maintenance of employee data in numerous databases. This core system of record enables clients to input employee data one time and enjoy seamless functionality across applications. When a revision is made to the file of an employee, all appropriate personnel have access to the change in real-time. In addition, the core system of record helps clients minimize the risk of compliance errors due to inaccurate or missing information that results from maintaining multiple databases. Through accurate tracking and management of employee payroll and other HR data, such information can be compiled for comprehensive and consistent reporting for our clients.

Paycom Recent Developments

In July 2021, Paycom Software launched the industry’s first self-service payroll technology allowing employees to do their own payroll, improving data accuracy, oversight and the user experience for businesses and their employees on each payroll cycle. Paycom’s BetiTM (Better Employee Transaction Interface), an enhancement to the company’s existing payroll offering, further automates and streamlines the payroll process by empowering employees to do their own payroll, increasing efficiencies and reducing errors. Employees already manage all other components of their paychecks, including timecards, expenses, PTO requests and benefits; now they have the convenience within Paycom to process their own payroll, too.

In September 2019, Paycom rolled out its proprietary Performance Evidence and Video Content Creator, two enhancements to its learning management platform, Paycom Learning. With Performance Evidence, clients can create a lesson tool that allows their employees to demonstrate knowledge and mastery of a specific skill to confirm they are truly grasping the course material. Additionally, the Video Content Creator allows subject-matter experts to share knowledge across the company by empowering them to create, upload and distribute engaging microlearning content quickly and easily.

In November 2018, Paycom launched a sophisticated machine learning (ML) technology with its Employment Predictor technology, giving an employer greater insight into employees at risk of leaving its organization, based on a proprietary algorithm.

Paycom Mergers and Acquisitions (M&A) Activities

Paycom does not have any experience in acquiring other businesses as of 2020. If Paycom acquires additional businesses, they fear that they may not be able to integrate the acquired personnel, operations and technologies successfully or to effectively manage the combined business following the acquisition.

Paycom Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Paycom applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Paycom and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Paycom Payroll customers.

Paycom Key Enterprise and Cloud Applications

Paycom Payroll

Paycom Revenues, $M:

Paycom Revenue Breakdown By Type, $M:

Paycom Enterprise Applications Revenues By Functional Markets, $M:

Paycom Enterprise Applications Revenues By Verticals, $M:

Paycom Revenues By Region, $M

Paycom Direct vs Indirect sales

Paycom Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Paycom Customers

No. of Paycom Customers: 31000

No. of Paycom Enterprise Applications Customers: 31000

No. of Paycom Cloud Customers: 31000

No. of Paycom Cloud Subscribers: 5+milion

Paycom serves a diverse client base in terms of size and industry. They have approximately 31,000 clients or approximately 16,100 clients based on parent company grouping, none of which constituted more than one-half of one percent of their revenues for the year ended December 31, 2020. Paycom stored data for over 5.0 million persons employed by their clients during the year ended December 31, 2020. As a result of the nature and size of Paycom clientele, they maintain a diversified client base and very low revenue concentration among their clients. Paycom believes, however, that larger employers represent a substantial opportunity to increase the number of clients we serve and to increase their revenues per client with limited incremental cost. As Paycom attracts clients at the higher end of our target client size range, they may face longer sales cycles and less predictability in completing some of their sales.

Paycom Market Opportunities, M&A and Geo Expansions

In 2019, revenues were $738 million, up 30% from the prior year. Paycom retains a stronghold in secondary and tertiary markets that rely on its payroll and HCM applications.

Over the past four years, Paycom has begun to move upmarket by securing larger clients.

Paycom Risks and Challenges

Paycom's transition from a payroll-centric service provider to a full-blown HCM applications vendor with extensive offerings from Core HR to talent management will test its ability to sustain its innovation quotient.

The market for HCM solutions is rapidly evolving, highly competitive and subject to changing technology, shifting client needs and frequent introduction of new products and services. Paycom competitors range from small, regional firms to large, well-established international firms with multiple product offerings. Paycom competes with firms that provide HCM solutions by various means. Many providers continue to deliver legacy enterprise software, but as demand for greater flexibility and access to information grows, Paycom believes there will be increased competition in the delivery of HCM cloud-based solutions by other SaaS providers. Their competitors offer HCM solutions that may overlap with one, several or all categories of applications and include companies such as Automatic Data Processing, Inc., Ceridian HCM, Inc., Cornerstone OnDemand, Inc., Intuit, Inc., Insperity, Inc., Oracle Corporation, Paychex, Inc., Paylocity Holding Corporation, Paycor Inc., SAP SE, ServiceNow, Inc., Ultimate Kronos Group, Workday, Inc. and other local and regional providers. Competition in the HCM solutions market is primarily based on service responsiveness, product quality and reputation, breadth of service, application offering and price. The importance of these factors depends on the size of the business. Price tends to be the most important factor of competition for smaller businesses with fewer employees, while the scope of features and customization is more important to larger businesses. Regardless of a company’s size, another important factor is the implementation experience, as all organizations are seeking a streamlined and simplified process.

Paycom Ecosystem, Partners, Resellers and SI

Paycom generates client leads and demo requests, accelerates sales opportunities and builds brand awareness through their marketing programs that target senior finance and HR executives, technology professionals and senior business leaders of companies that perform HCM functions in-house or outsource these functions to one of their competitors. Paycom sells their solution exclusively through their captive sales force, substantially all of whom have a four-year college degree. Paycom typically recruits sales candidates who have sales experience in non-HCM industries or, with respect to candidates recruited directly from colleges and universities, who have demonstrated an aptitude for sales. Paycom sales force is comprised of inside sales and field sales personnel, who are organized geographically, and client relations representatives (“CRRs”), who sell additional applications to existing clients. As of the filing of this Form 10-K, Paycom has 50 sales teams (including one team consisting of CRRs and inside sales representatives) located in 27 states and plan to open additional sales offices to further expand our presence in the U.S. market.

Paycom Cloud Infrastructure Insights

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• Paycom Public Cloud and Infrastructure (IaaS)
• Paycom Platform (PaaS)
• Paycom Application Delivery
• Paycom Private Cloud and Data Centers

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: