2014 HRTech WFM Market Map:
Private Company Star Performers:
TLM WFM Market Sector Size & Scope:
Value-Proposition: WFM (Workforce Management) beyond Payroll Services include Time, Expense, Absence, Expense, Scheduling, Labor Analytics & Optimization, and integrates with Core HR, HCM, ERP and industry specific solutions.
Market Size: North American Payroll Services >$16B, CAGR single digits with approximately North American Churn of ~1B annually (> 200,00 small businesses) from Payroll/PEO market.
Market Adoption & Utilization[1]:
Demand & Growth Factors:
- Beyond Payroll Services
- Workforce Management
- Consumerism: Social, Mobile, Apps, HCM
- Cloud & Platform Processing Efficiencies
- Labor Management Complexity, Compliance & Security
Valuations: While HRTech valuation multiples remain attractive (for scaled enterprises 2 to 8X revenue multiple and 6 to 12X EBITDA multiple, for service bureaus private company valuations range more greatly with revenue multiples of 0.5X to 2X and EBITDA 2X to 6X. For pure play WFM vendors 1.5X to 4.5X TTM Revenues.
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