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Paychex – Helping The Small-Medium Business With Their Payroll & Human Resources Services.

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In the old times, people were hired just because they were needed, but with the industrial revolution, the process of hiring people became a skillful trade. With time and advancements in technology, the field of human resources became a separate entity and an equally important part of a company like the others. Today, the field itself has a different set of rules, programs, software, and in fact, companies. Paychex is one of the leading human resource, payroll, and benefits outsourcing companies that is providing its services for small to medium-sized businesses around the world. It is a fifty years old corporation and has clients in almost every country in the world.

About the Company

Paychex is an American company with its headquarters based in Rochester, New York. B. Thomas Golisano founded Paychex in 1971, and for the past 50 years, the company has established over 100 offices in different sites across the globe. The company has a client base as big as 670,000 in the U.S. and Europe only, and as of 2018, about 14,300 are working for the company. The company deals in Payroll, HR, Benefits, and Insurance services, whereas, the United States, Germany, Brazil, Denmark, Norway, Sweden are the major countries of service for Paychex. As per the 2018 records, the company held assets worth US$ 7.46 billion and made revenues worth US$ 3.38 billion.

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Image source: prnewswire.com

Founding of Paychex

B. Thomas Golisano founded Paychex in 1971 in Rochester, New York. Before founding the company, he worked at Electronic Accounting Systems (EAS) as a sales manager. EAS was a human resource company that offered its expensive services to well-established companies in the area. This ignited the idea in Golisano’s mind of having similar services for small to medium size businesses at affordable prices. After researching for quite a while, he realized that his idea had a lot of potentials, so he decided to start a payroll service for small businesses that was also affordable for them.
Before starting his company, Golisano reached out to the head of EAS with the idea to market a similar service for the small business. But the company was not interested in targeting the small businesses, despite it helped Golisano to rent a space, and he started Paychex as PayMaster with a $3000 capital in 1971.
Since PayMaster was going to target small businesses, the fees were quite minimal and based on the number of employees in the company. Also, there were no unnecessary formalities of form filling and submitting to the company. In fact, the clients just had to contact PayMaster through a phone call, and the rest was in the hands of Paychex. Within a year, Paychex had got 42 clients, and in the next five years, the number raised to 300 clients in the Rochester area.
The expansion of the company started with opening a branch in Syracuse in partnership between Golisano and his friend and selling a franchise to another friend to work in Miami. By 1979, the company had reached 22 cities and employing 200 people to serve 5,700 clients. In 1983, the company went public on NASDAQ, setting a record of steady growth.
By 1986, Paychex had raised to 60,000 clients and 58 offices. By the end of the 80s, the company profits were doubled. During the same time, Paychex also made some acquisitions like Minneapolis-based Purchase Payroll. The company also spent money on staff training and made sure that the clients were served professional assistance. At the beginning of the 90s, Paychex added services like Paylink, Reportlink, Taxpay service, and Human Resource Services, etc.
In 1996, Paychex acquired Californian company Olsen Computer Systems Inc. and Florida’s National Business Solutions. In 2002, the company was listed in the Fortune’s list of “100 Best Companies to Work For” in the United States. The company’s revenues also exceeded $9 billion in 2017. The next year, Paychex won the World’s Most Ethical Companies by Ethisphere for the 11th time in a row, and Forbes listed it 76th on its list of the World’s Most Innovative Companies.

The Founder/CEO

Blase Thomas Golisano founded Paychex in 1971. He is an American entrepreneur and author. He was born on 14 November 1941 in Rochester, New York, the U.S. He went to Alfred State College and has a degree in Business Administration. Before founding Paychex, he worked at EAS as a sales manager. He served the company as the president and the CEO from 1971 to October 2004. Currently, he is the chairman of the board of the company. According to Forbes 400 list, he is the 238th wealthiest person in America.

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Digit Insurance Becomes Asia’s General Insurance Company Of The Year In 2019

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Digit Insurance is a general insurance company where one gets any type of insurance done under the same roof. Kamesh Goyal founded the company in 2016 and it received a license in 2017.

Insurance becomes a very vital part of our life when future planning comes into play. Medical insurance, car insurance, home insurance and whatnot. Insurance plays a key role in our present and future lives which cannot be ignored. Our well-being partly depends on proper insurance.

We often tend to make different insurance from different sources. And, most of the time we just listen to some of our relatives and go to the same company. But, a decision which is as vital as insurance should be a properly thought decision. And, moreover wouldn’t it be so much better if one single company providing you with all kinds of insurance?

Digit Insurance is a general insurance company where one gets any type of insurance done under the same roof. Kamesh Goyal founded the company in 2016 and it received a license in 2017.

Kamesh graduated with a B.Sc degree from St. Stephen’s College, Delhi. He also studied law from Delhi University and then pursued his MBA under the same. His first job was at The New India Assurance Co. Ltd. where he worked for nine years.

About the Founder

Kamesh also worked at the Allianz India Liaison office and served as both the CEO and COO of Bajaj Allianz General Insurance. He also served in many positions at Allianz Asset Management. And, in 2016 he finally executed his plan of Digit Insurance.

The Beginning

Kamesh had good experience in the sector of insurance. He worked for different companies and in different prestigious positions for more than twenty years. One important thing that Kamesh noticed during this time is the communication gap is very vivid between the company and the customer.

The insurance sector has made significant development in the past seventeen years. But, only 29% of the total customers are satisfied with the services provided and the terms of the insurance. So, until and unless the company understands the needs and demands of their customers, they cannot come up with something fruitful. This sense of miscommunication drives Kamesh to establish a company providing what is necessary and basic.

Strategies

No matter what field one chooses today, high tech is always a pre-requisite. So, Digit Insurance from the very beginning decided to invest in technology.

When Kamesh established Digit, Fairfax Group saw a huge opportunity and potential in this company. So, they bought 45% stake in the company for 350 crores. This became the highest amount received by a start-up in the insurance sector.

Kamesh decided to offer every kind of insurance to his customers. For motor insurance, Digit collaborated with 250 strategic partners with increased over the years. One way to be on track without competitors is tying up with them. So, Digit also came in partnership with Paytm and Amazon.

A good start

Insurance is a sector which is in demand for every class of people. So, once the company starts making money, good policies and good terms can keep you on track. Within four months of launching, Digit Insurance landed 1.5 lakh customers and 100 crores in pocket.

Funding

In July 2018, the company raised $44 million in the second round of funding. This summed up the total funding raised by Digit Insurance to $94 million.

In 2020, the company raised $84 million from A91, Faering, and TVS Capital. The company which is just two years old is doing absolutely brilliant. The last funding has led Digit’s total fundraising to $224 million. Digit currently serves more than five million customers with extremely diversified categories of insurance.

Success

In 2019, Digit bagged the award of Asia’s General Insurance Company of the year 2019. The customer rating is highly lucrative and impressive. Digit Insurance has also been listed in India’s top two start-ups for consecutive two years. And, it is the only Indian insurance company to be listed in the Global Fintech List. It is absolutely remarkable to witness a young company growing so fast.

Since Digit focuses on the implementation of technology from the first, they are using AI and ML-based tools to prevent fraud. Because, for an insurance company, fraud is the biggest threat. They are experimenting with new tools now but this is going to be very effective in the long run.