Summary
Paycom Software Inc (PAYC, Financial), a leader in cloud-based human capital management (HCM) software, has released findings from a Forrester Consulting study, revealing that businesses use an average of 6.17 HCM providers, leading to data accuracy issues and inefficient workforce reporting. The study, commissioned by Paycom, highlights the benefits of their single-database software, which aims to streamline HR processes and improve data integrity. The press release was issued in May 2025.
Positive Aspects
- Paycom's single-database software eliminates data duplication and enhances data accuracy.
- 91% of respondents showed interest in a single HCM software solution.
- 84% of respondents believe a single-database solution would positively impact business goals.
Negative Aspects
- 77% of businesses store employee data across multiple HCM databases, leading to inefficiencies.
- 71% of respondents face challenges in transferring employee data across different platforms.
- 4 in 5 respondents experience issues with workforce reporting due to inaccurate data.
Financial Analyst Perspective
From a financial standpoint, Paycom's emphasis on a single-database solution could position the company as a leader in the HCM market, potentially increasing its market share. The demand for streamlined HR processes and accurate data management is likely to drive more businesses towards Paycom's offerings, which could result in increased revenue and profitability for the company.
Market Research Analyst Perspective
The study underscores a significant market opportunity for Paycom, as many businesses struggle with the complexities of managing multiple HCM systems. By addressing these pain points, Paycom can differentiate itself from competitors and attract a broader customer base. The high interest in single-database solutions suggests a growing trend towards integrated HCM systems, which Paycom is well-positioned to capitalize on.
FAQ
What is the average number of HCM providers businesses use?
Businesses rely on an average of 6.17 HCM providers.
What percentage of respondents are interested in a single HCM software solution?
91% of respondents expressed interest in a single HCM software solution.
What are the main issues faced by businesses using multiple HCM providers?
Businesses face data accuracy issues and inefficiencies in workforce reporting.
What is the expected benefit of using a single-database HCM solution?
Improved data accuracy is the top expected benefit.
Read the original press release here.
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