How is payroll and hr business growing ?
This business is full of players all growing well like ADP, Workday, and smaller ones like paycom. I think eventually, there are only limited workforce in US, like 200M population at most, and total cost including pay and benefits spent on all of them is not growing that much. So where is the growth from? I can understand Profitability and stability but I don’t understand the growth.
Outsourcing! Intl EOR. Cost arbitrage between US and LCOL countries. Domestic PEO to reduce liability.
We should ask you, I guess.
Wrong metric to think about. 1 - population growth will happen anyway 2 - it's more about number of companies large enough to buy and need this software. I only see that growing
It's not just payroll and HR software right. There's tons of things ADP sells like Benefits, Insurance, Retirement, Time Management System and so on. So there's scope for growth.
Workday is 💩
Honestly all of these services are crap. They are a trust business more than a tech business. Just because they move such large amounts of money it's important that they will not run out of business which is a possibility with startups. And then most of these legacy businesses aren't pure tech plays and instead rely heavily on their sales org and attract avg software talent because of their low compensation and lack of visionary tech leaders. So they end up running almost like banks with legacy software and slow movement.
attrition payroll float need to have product margins on PEO once a business closes, another opens, needs a 'need to have' product
Actually no companies lose in this area.