The 2020 Pandemic had an adverse effect on the economy that is still being felt, but it taught some valuable lessons to human resource managers. The remote workforces employed during the height of Covid-19 are proving to be cost-effective and efficient in a post-pandemic world. Asure, a payroll and HR service for over 80,000 businesses, has adjusted to that.
According to Future Market Insights, the global payroll and HR solutions market was worth $25.5 billion in 2021 with a forecasted CAGR of 7.7% over the next ten years. That’s a growth target of $58.3 billion by 2032. The demand for better technology to meet that need has never been higher, particularly with the remote distribution of modern workforces.
Upwork, the largest freelance platform in the world with over three million jobs posted annually, estimates that one in four Americans are currently working from home. According to Gartner, 31% of all workers globally will be remote by the end of 2022. HR departments need to pivot to adjust for that change. That requires faster and more efficient processes and systems.
The team at Asure Software (NASDAQ: ASUR), led by CEO Pat Goepel, is no stranger to change. They’ve been innovating and adjusting to new market conditions since 2007 and have earned a reputation as one of the leading human capital management solutions providers in the world. Their response to the “new normal” of a post-pandemic world has them off to a great start in 2022.
Asure Integration Market offers Upgraded Pre-Employment Verification
In November 2021, according to Forbes, 4.5 million people voluntarily quit their jobs to seek work-from-home opportunities. Confirming employment history and creditworthiness for this transitory population is an HR nightmare with manual data checks. Asure has built an integration with Equifax and its Work Number service to automate the process.
“One of our marketplace’s featured integrations is with Equifax and their employment verification product, The Work Number,” said Pat Goepel, Chairman, and CEO of Asure. “This partnership will free Asure’s clients from the burden of manually verifying work history, loan applications, or benefits documentation. These integrations save time and eliminate errors.”
Equifax isn’t the only new integration. Asure’s “API-first” development strategy in 2021 has helped them provide clients with prebuilt integrations from over 125 vendors in the payroll and HR industry. That includes payroll, tax, time, attendance, retirement, and worker’s compensation systems. More than half of these have been launched in the last quarter.
With the suite of tools now available in the Asure ecosystem, small and mid-sized businesses can affordably automate their HR needs and expand operations to include remote workers. With Equifax Work Number, the hiring process can be streamlined, and vetting new employees become less of a burden. It’s a gamechanger that can accelerate growth.
HR Cost-Cutting with AI Enhancements and Improved Data Integrity
Enhancing HR solutions software with AI integrations is a trend that’s expected to continue in 2022. Just this month, Claira, an AI-powered analytics engine for evaluating talent and hiring, raised $3.5 million in seed funding. That came on the heels of a $2.8 million raise by the Ciel Group that came from major industry players like Zoho and Idhayam.
The addition of AI, which is a major component in Asure’s new integration marketplace, eliminates error-prone manual data entry, improving data integrity and streamlining the flow of information through an employee’s life cycle. This in turn lowers the total cost of ownership (TCO) of a company’s human capital management (HCM) technology.
To further clarify how this affects the modern remote workforce, it’s cost-effective to run a remote team. It’s expensive to recruit and hire one. The logistics and price tag make it prohibitive for many small to mid-size businesses to go remote. Automation is the solution to that. Asure’s integrated AI tech stacks are making that possible for more companies.
From Asure’s point of view, the library of prebuilt integrations makes them easier to do business with. By simplifying the onboarding procedure, they’re able to build stickier client relationships and expand sales opportunities. Most modern companies look at AI integration as an essential component of any HR or payroll provider software they subscribe to.
Asure Shows Strong Growth Numbers in Q1 Report
In a strong first-quarter report issued last week, CFO John Pence reported that “Asure generated strong financial results with revenues growing 23% and non-GAAP EBITDA growing 18% relative to last year.” Their non-GAAP gross margin has increased by almost 500 basis points over the past two years. The non-GAAP EBITDA margin is at 17%.
Pence comments on the temporary reductions in employee benefits due to Covid-19 in 2021, but also remarks on how increased exposure coming out of the pandemic has allowed them to adjust their revenue projections for 2022. The new estimate is in the $88 million to $90 million range, accounting for the increased sales capacity of the integration marketplace.
First-quarter revenue was $24.3 million, an increase of 23% year-over-year, and the non-GAAP net income was $2.2 million, which is consistent with last year’s Q1 report. Total bookings are up 43%, so the company is on track to show some significant growth in 2022. They expect Robotic Process Automation (RPA) and their new Treasury Management System to be the prime drivers of that growth. Look for more on those in the coming months.
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