Solving the needs of the HR Department

SHRM defines small business (“SMBs”) as any business with less than 500 employees. In the United States alone there are more than one million small businesses with less than 500 employees. 

• The SMB market demand is generally satisfied by transactional processing providers that provide payroll administration transactional services, and vendor solutions providers that provide basic “minimum professional standard” HR and Workforce services.
• The Enterprise market demand is generally satisfied by large public or institutional backed providers with “packaged & bundled” robust services, that provides technology and services that manages the employee employment life cycle demanded by the enterprise market. The most successful providers are either technology centric platforms (HRIS: Human Resource Information Systems) or implementation organizations that aggregate various point solutions generally on a vertical market basis.

 

Beyond startups and enterprises, the “lower middle market” of companies with 50 to 1,000 employees includes 100,000 organizations. This lower middle market is greatly underserved with prebuilt, preconfigured solutions for its needs. 

Beyond the HCM technology gaps, the HR compliance service gap continues. The rising percentage of non traditional workforce, combined with the demand to outsource benefits, claims, and other administration processing coupled with the requirements to update cloud technology including workflows and regulations and policies chance has created an emerging market for HR compliance as a service.

Across North America, there are more than ~340 private companies with greater than $1m in annual revenues that provide HRO Services, of which less than a hundred combine proprietary technology + tools & content + a portfolio of services by module/function. These firms are further bifurcated with the majority of their revenues  divided between the SMB market or these enterprise market.

HR Compliance as a Service enables the bundling and unbundling of HR Outsourcing services and capabilities via single access for the end user HR Department.

As a result of the lower middle market demand for HR outsourcing compliance services; there is a sizable opportunity for either emerging or existing vendors to create a lower middle market HRO sector leader.