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UKG Workforce Activity Report
Measuring U.S. economic growth with high-frequency data
We're taking a closer look at our labor index data, including employee shift work, from over 6.2 million active U.S. employees. Each month we compile a Workforce Activity Report to better understand the rapidly evolving employment outlook to help business leaders, labor economists, and other groups make better-informed decisions to improve the job market.
Workforce activity increased 1.8% in November, bolstered by an early start to the holiday season, which saw shift work increase across key sectors supporting the physical and digital shopping supply chains.
Click here to read the report
Paychex Acquires Paycor
Interesting news in the HCM space with Paychex announcing they are acquiring Paycor.
How will this event impact your clients?
That is unknown at this stage, but rest assured it will have an impact. When there are vendor consolidations, there are typically unexpected changes that impact your clients rapidly. They could be forced to migrate technology. They could experience changes to their client service model, service representative, and quality of support. Oftentimes, this type of event can lead to changes in pricing. There is a lot of unknown that the client did not sign up for.
What does this mean to your firm?
- A quick reminder that Paychex offers both a PEO and their own insurance agency where they sell group health insurance and workers' compensation insurance. Their PEO and licensed insurance agents will likely begin targeting their newly acquired Paycor clients for upsell opportunities to their PEO product and BORs for the group health. They will likely pitch the benefits of the acquisition to the client and sadly, sometimes this may lead to poor decision making.
- Paychex will offer their employee marketplace to all Paycor clients, where they sell Voluntary Benefits.
- Per the Paychex CEO, they will cross-sell Paycor clients to Paychex PEO or Paychex Insurance Agency with the goal of selling to the mid and upmarket size clients.
- Growing trend of Paychex signing up larger EE companies onto their PEO platform, and Paycor's acquisition will help them exacerbate this strategic focus.
We recommend you and your team proactively engage with any groups that are currently on Paychex and Paycor to get ahead of the messaging. UKG is here to help!
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