What is the reason behind Paycom’s success?
The CEO of Paycom is the man who took it to the skies’ limit.
What is Paycom?
Paycom is an online payroll and human resources services provider based in Oklahoma, United States.Its offices are present all over the US. It is known as the first fully online payroll company and is growing at a rapid speed. Its estimated generated revenue in 2020 was $841.1 million, and it increased to $1.06 billion. The main reason behind this huge success by the company is its CEO, Chad Richison. He has been working hard and leading the company from 1998.
Services of Paycom
Paycom was founded in 1998 as an online payroll company, which it extended its services to in 2001. They are providing their services to all the businesses and their offices are located all over the United States. The major services they are providing are listed below:
- Online, Cloud based Payroll
- HRM services
How did Paycom become so successful?
Chad wanted to bring innovation in the payroll methods that’s why he initiated Paycom. He has played a vital role in bringing Paycom to a next level and all of the achievements Paycom has made are led by this man. At the start, he did not have enough cash to launch the business, so he sold his home to get money for his start-up. At the time of the launch of the company, the internet was not commonly used. But he managed to start by using another company’s templates for payroll. To get started, he created the initial documents and software himself. In 2014, he made the company public and sold its shares. The company started to make actual progress after 2019 when they entered into an agreement, which is a long-term performance-based agreement between Chad Richison and the stakeholders of the company. The basic terms of the agreement are:
- Chad has to take the share value to $1000 per share in 2026.
- After ten years of plan in 2030, he has to increase the share $1750 per share.
This plan has already started working as the Paycom’s per share value increased to $400 in 2021 which shows that within a time period of six years the share value will reach to the targeted value. And if plan works till the end of decade the value of company will reach $100 billion.