In this piece, we will take a look at the 17 biggest payroll companies in the world. For more companies, head on over to 5 Biggest Payroll Companies in the World.
Today’s corporate world is significantly different from companies of the past. The growth in industries and employment often leaves firms with thousands of employees and makes managing their needs a complex task requiring additional investments and teams which end up diverting attention from their strategic business operations and objectives.
To respond to these needs, companies that provide services such as human resources management have sprung up, which allows employers to outsource these functions in order to save up on significant capital expenditures. One such sector is the payroll industry, which consists of firms that offer software products to enable employers to manage their employees and outsourcing solutions that completely take over the function.
As the economy and industry grow, this sector itself is worth billions of dollars. According to a research report from Vantage Market Research, the global human resource payroll software market was worth $25 billion in 2021 and it will grow at a compounded annual growth rate (CAGR) of 10.9% between then and 2028 to sit at an estimated $46.6 billion by the end of the forecast period. The research firm believes that several advantages offered by the software such as consolidating several human resources functions under a single roof, tracking working workings, and providing adequate security are key reasons that many companies prefer it. It adds that Asia Pacific will be the strongest growing region in terms of adaptability and that the industry is still reeling from the effects of the coronavirus pandemic since small and medium businesses that form the bulk of its customer base are yet to return to pre pandemic productivity.
One of the world’s premier payroll products providers Paychex, Inc. (NASDAQ:PAYX) outlines several key trends that are shaping the payroll industry today. In a 2023 post, the firm shares that increasing wages in the U.S., the growth in the gig economy, unique benefits such as healthcare accounts, higher accuracy, and transparency about payroll across the organization are some of the factors that are relevant today.
Today we’ll look at some of the biggest payroll companies in the world, with the top picks being Automatic Data Processing, Inc. (NASDAQ:ADP), Intuit Inc. (NASDAQ:INTU), and SAP SE (NYSE:SAP).
Our Methodology
To compile our list, we searched for the biggest companies that offer both payroll software and allow firms to outsource the functions. Then, their latest revenue estimate for the last twelve months was added, and the top 17 players are listed below.
17 Biggest Payroll Companies in the World
Gusto, Inc.Deel
Latest Revenue Estimate: N/A
Gusto, Inc. is a privately held firm headquartered in San Francisco, California. It handles different payroll tasks such as onboarding, insurance, and benefits management. The firm also has a diverse set of applications that cover functional areas such as loan forgiveness and paycheck forgiveness.
Automatic Data Processing, Inc. (NASDAQ:ADP), Gusto, Inc., Intuit Inc. (NASDAQ:INTU), and SAP SE (NYSE:SAP) are some of the biggest payroll service providers in the world.
16. Deel
Latest Revenue Estimate: $295 million
Deel is a privately held company headquartered in San Francisco, California. The firm is a fully remote organization that enables other firms to use its platform for hiring employees all over the globe. Deel also hires employees for other companies on their behalf and acts as their employer. The firm does not have any offices as it operates as a fully remote organization.
15. Paycor HCM, Inc. (NASDAQ:PYCR)
Latest Revenue Estimate: $484 million
Paycor HCM, Inc. (NASDAQ:PYCR) is an American company headquartered in Cincinnati, Ohio. It provides a cloud based software platform that allows firms to pay their employees, hire them, run analytics, and conduct other tasks.
Paycor HCM, Inc. (NASDAQ:PYCR) added new functionality to its platform in February 2023 when it announced a leadership board to enable firms to monitor employee performance. By the end of last year’s fourth quarter, 15 of the 943 hedge funds polled by Insider Monkey had bought the firm’s shares.
Paycor HCM, Inc. (NASDAQ:PYCR)’s largest investor in our database is Paul Marshall and Ian Wace’s Marshall Wace LLP which owns 814,415 shares that are worth $19 million.
14. BlackLine, Inc. (NASDAQ:BL)
Latest Revenue Estimate: $522 million
BlackLine, Inc. (NASDAQ:BL) is a software provider that allows firms to streamline their payroll reconciliation by letting its products automate accounting operations. The firm is based in Woodland Hills, California.
BlackLine, Inc. (NASDAQ:BL) expanded its software functionality in February 2023 when it teamed up with another firm to automate its accounts receivable function. 23 of the 943 hedge funds part of Insider Monkey’s Q4 2022 survey had bought the firm’s shares.
BlackLine, Inc. (NASDAQ:BL)’s largest investor is George Soros’ Echo Street Capital Management which owns 500,000 shares that are worth $80 million.
13. Bill.com Holdings, Inc. (NYSE:BILL)
Latest Revenue Estimate: $857 million
Bill.com Holdings, Inc. (NYSE:BILL) is an American firm that enables customers to centralize their accounting operations. This enables them to pay their employees through checks or electronic payments. The firm is based in San Jose, California.
Bill.com Holdings, Inc. (NYSE:BILL)’s second quarter for the fiscal year 2023 saw the firm grow its revenue by 66% annually as higher wages injected steam into the American economy. As part of their investments for the fourth quarter of last year, 58 of the 943 hedge funds part of Insider Monkey’s research had invested in the firm.
Panayotis Takis Sparaggis’ Alkeon Capital Management is Bill.com Holdings, Inc. (NYSE:BILL)’s largest investor. It owns 1.5 million shares that are worth $215 million.
12. Justworks
Latest Revenue Estimate: $982 million
Justworks is a software company enabling firms to pay all kinds of employees such as gig workers, salaried, full time, part time, and others. The firm has operations in 50 American states and its lets customers set up payroll operations online, split deposits, and set payment reminders alongside functions.
11. Paylocity Holding Corporation (NASDAQ:PCTY)
Latest Revenue Estimate: $1 billion
Paylocity Holding Corporation (NASDAQ:PCTY) is a U.S. firm headquartered in Schaumburg, Illinois. It provides payroll services enabling businesses to automate the process and meet regulatory requirements.
Paylocity Holding Corporation (NASDAQ:PCTY)’s earnings per share have grown at a stunning 53% annually over the past five years, as of February 2023, This has outpaced the share price growth of 39% during the same time period. Insider Monkey dug through 943 hedge fund holdings for last year’s December quarter to discover that 33 had bought the firm’s shares.
Paylocity Holding Corporation (NASDAQ:PCTY)’s largest investor is Ken Griffin’s Citadel Investment Group which owns 970,347 shares that are worth $188 million.
10. Ceridian HCM Holding Inc. (NYSE:CDAY)
Latest Revenue Estimate: $1.2 billion
Ceridian HCM Holding Inc. (NYSE:CDAY) is a software company that provides a cloud based platform for firms to manage their payroll and related services. It is based in Minneapolis, Minnesota.
Ceridian HCM Holding Inc. (NYSE:CDAY) grew its global footprint in February 2023 when it expanded its partner network to Asia by offering a full suite of software products to potential customers. 22 of the 943 hedge funds part of Insider Monkey’s Q4 2022 survey had bought the firm’s shares.
Ceridian HCM Holding Inc. (NYSE:CDAY)’s largest investor is Robert Joseph Caruso’s Select Equity Group which owns 18.4 million shares that are worth $1.1 billion.
9. Paycom Software, Inc. (NYSE:PAYC)
Latest Revenue Estimate: $1.3 billion
Paycom Software, Inc. (NYSE:PAYC) offers software based payroll products allowing employers to manage their expenses, make payments, budget their compensation, and carry out other tasks. It is based in Oklahoma City, Oklahoma.
Oppenheimer raised Paycom Software, Inc. (NYSE:PAYC)’s share price target to $400 from $360 in February 2023 as it was impressed by a 30% growth in the firm’s recurring revenue during its fiscal fourth quarter. Insider Monkey’s December quarter of 2022 survey covering 943 hedge funds revealed that 47 had bought the firm’s shares.
Paycom Software, Inc. (NYSE:PAYC)’s largest investor in our database is Greg Poole’s Echo Street Capital Management which owns 579,952 shares that are worth $179 million.
8. Visma
Latest Revenue Estimate: $1.86 billion (1EUR = 1.06USD)
Visma is a private company headquartered in Oslo, Norway. The firm provides cloud payroll software that lets users such as small businesses, municipalities, and other organizations automate their payroll, generate payslips, and automate the payroll function.
7. The Sage Group plc (LON:SGE.L)
Latest Revenue Estimate: $2.35 billion (1GBP = 1.20USD)
The Sage Group plc (LON:SGE.L) is a British company headquartered in Newcastle upon Tyme, the United Kingdom. The firm’s Sage Payroll platform allows its customers to integrate their accounts in a single platform, make payments, create payslips, file pensions, and ensure regulatory compliance.
6. Ultimate Kronos Group
Latest Revenue Estimate: $2.36 billion
Ultimate Kronos Group is an American firm headquartered in both Massachusetts and in Florida. The company’s payroll software lets users sift through tax regulations, monitor time and attendance, and digitize the process. Additionally, it also lets employees access their pay stubs and calculate take home pay.
Along with Automatic Data Processing, Inc. (NASDAQ:ADP), Intuit Inc. (NASDAQ:INTU), and SAP SE (NYSE:SAP), Ultimate Kronos Group is one of the biggest payroll companies in the world.
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Disclosure: None. 17 Biggest Payroll Companies in the World is originally published on Insider Monkey.
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