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Paychex - Does BeneTrac and Paychex Insurance Agency Have Enough Horsepower?

The Paychex acquisition of BeneTrac and recent launch of the Paychex Insurance Agency has gathered a lot of attention.

BeneTrac is a well-known name in online benefit enrollment and the Paychex Insurance Agency will be formidable given that there are roughly 564,000 companies that Paychex counts as clients. (see info below from Paychex)

Paychex client base

But the Paychex client base consists of companies with an average of 16 employees. This begs the question for Paychex, BeneTrac, and Paychex Insurance Agency clients:

Does Paychex have the horsepower to handle your company's complex needs?

What works for a 16 person firm will not likely work for your firm if you have 100 or more employees. BeneTrac and the PayChex Insurance Agency may work well for smaller clients, but your company needs more robust benefit management capabilities and thoughtful planning for your growing company's needs.

Contact your employee benefit broker or Infinity HR to explain how we can improve your offering in ways that the Paychex Insurance Agency and BeneTrac can't match.

 

HRIS Comparison,HRMS Comparison

Comments

According to the US Census Bureau Statistics of US Businesses, the average company in the US has 15.9 employees. I would assume, since Paychex processes payroll for 564,000, their average current client size would match that of what the actual national average is.  
 
 
 
If you continue to do some research, you will find that the largest 30,000 clients (about 18% of their clients)that Paychex processes payroll for average 140 employees. Comparing that again the the US Census Bureau numbers, Employers that have between 100-499 employees make up approximately 14% of the overall market.  
 
 
 
Looking at ADP's numbers (the largest competitor of Paychex...who actually focuses on large clients), they are almost identical to the Paychex numbers!  
 
 
 
The point is, the average size client that Paychex works with does and will always mirror the average size of all US businesses. That is whaat happens when you are one of the two larget payroll providers in the market.  
 
 
 
I think if you are going to put info out there, you should include all the facts so that you do not mislead your readers.
Posted @ Thursday, October 13, 2011 3:17 PM by Steven
Yes, I agree that the Paychex clients mirror the US business market.  
 
The census data is interesting-- but if you add it up, 88% of the firms only employ 39% of the employees (the largest 12% employee 61% of employees). 
 
My point in writing the blog was that the top 12% (100 or more employees) have more demanding needs, which happens to be the market that we cater to... 
 
Thanks for reading and commenting. The census info can be found at the following link: 
 
http://www.census.gov/econ/smallbus.html 
Posted @ Thursday, October 13, 2011 5:00 PM by Phil Lamb
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