Winner, Business and Financial Services
Chad Richison began his career in the payroll industry by working at a large, national payroll company before moving to Colorado and taking a similar role with a smaller, regional provider. His experience at both firms led him to realize there had to be a better way to service customers.
So in 1998, he returned his family to Oklahoma, recruited his sister and a family friend, and founded Paycom. His concept was revolutionary in that, rather than force customers to use installed payroll software, he employed software-as-a-service technology, becoming the first to offer midsized businesses the alternative system.
By doing so, Paycom delivered to its clients its cutting-edge payroll software over the Internet, providing employers with real-time access to their payroll information.
“Our biggest difference is that we are 100 percent Internet-based,” Richison says. “Our largest customer has over 10,000 employees and most of our customers have more than 50 employees. Developing an Internet product for small businesses had been done previously, but developing an Internet product that is 100 percent browser-based for the large customer with more than 1,000 employees had not been done.”
Today, Richison has expanded Paycom’s services to include an entire suite of offerings such as time and attendance, human resources, benefits, COBRA and background checks.
Throughout the last decade, Paycom steadily grew. In 2007, Richison sold the majority ownership stake to Welsh Carson Anderson and Stowe, a New York-based private equity firm, keeping a stake in the company himself and remaining CEO.
The cash infusion provided Richison with the funds necessary to expand, and he added offices nationwide. Paycom currently staffs 15 offices in Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Forth Worth, Houston, Irvine, Los Angeles, Phoenix, St. Louis, Tampa, Tulsa and its headquarters in Oklahoma City.
Paycom’s growth continues as Richison says the company adds about 500 new customers every month. He plans two additional city expansions later this year, which would take the total to 17.
How to reach: Paycom, www.paycomonline.com
