Human capital management (HCM) firms reported steady progress across their platforms in second-quarter earnings calls, with executives highlighting the power of integrated systems, artificial intelligence-driven innovation and strong go-to-market alignment. HCM companies are streamlining HR and finance operations, expanding distribution strategies and reinforcing culture as a foundation for growth.
Earnings calls transcripts were provided by Bloomberg, and while all the calls cover the same timeframe, the earnings calls of Paychex Inc. and Paylocity Holding Corp. (Paylocity) covered their respective organizations’ fourth quarters due to differences in fiscal years.
Integration and platform expansion
A consistent theme across HCM providers was the focus on integration—consolidating fragmented HR, payroll and finance systems into unified platforms. Executives stressed that customers are looking for simplicity and the elimination of manual processes.
Steve Beauchamp, executive chairman of Paylocity, said the company’s clients can now manage payroll and non-payroll spending in a single platform and eliminate disconnected systems, manual processes and approval bottlenecks.
This strategy also extends to acquisitions and cross-sell synergies. By aligning platforms and broadening available modules, companies are finding ways to increase sales productivity and deepen client relationships.
AI and technology as enablers of growth
Firms positioned AI as a required component of modern HCM platforms.
David Ossip, CEO of Dayforce Inc., said, “In today’s age of AI, a single application with a single data model is fundamentally required.”
TriNet Group Inc. is also investing in technology to modernize its go-to-market approach. CEO Mike Simonds said, “We are launching new AI-enabled prospecting tools and have made several improvements to simplify and streamline the selling process for our reps.”
Paylocity leaders said the company’s AP automation and guided procurement tools provide clients with clear accountability and real-time visibility.
By applying AI to customer operations and internal efficiency, HCM providers are emphasizing technology as a holistic enabler of growth.
Market alignment through distribution and culture
HCM firms are striving to align distribution strategies with customer channels and reinforce strong internal cultures.
Paychex CEO John Gibson said more than half of the company’s new business has originated from channel partner referrals.
TriNet highlighted similar efforts. Simonds said, “We’ve established preferred broker programs with several national partners where we have aligned on new sales and retention targets, as well as created dedicated quoting, sales and service teams.”
To learn more about human capital management firms, visit RSM’s business services page.
Companies also highlighted internal culture and talent as competitive differentiators.
Beauchamp of Paylocity praised the company’s staff for effective operational execution.
Simonds of TriNet said the company’s employees are “central to our effort to build a stronger hybrid in-office culture supportive of talent development and enhanced collaboration.”
The takeaway
Human capital management firms are converging around three shared priorities: integrating platforms to simplify client operations, embedding AI to drive productivity, and aligning customer channels while fostering strong internal cultures.
