Leadership in Action: Insights from Paycom’s Co-CEO, President and Chairman Chad Richison

Recognizing niche trends ahead of competitors is no easy feat, but Chad Richison, co-CEO, president and chairman of Paycom–a prominent player in the cloud-based human capital management software industry – does just that because “adopting a first-mover mentality is a key principle for successful entrepreneurs, he told Investor’s Business Daily.”

What are the driving factors behind Richison's notable success? Let's delve into his path as a leader and assess how he stacks up against other top leaders in the S&P 500.

A Vision of HR’s Future

Before establishing himself as a leader in software, he acquired a crucial skill—evaluating business trends. According to Richison, HR system information in the '90s was limited. Identifying gaps in the HR industry, he assessed hindrances and set clear goals to streamline and rectify issues, such as:

●      The constant struggle for employees and employers to track and update HR information.

●      Scattered files for benefits, employee reviews, payroll data, attendance records, tax-withholding forms, and time-off requests.

●      A manual and user-unfriendly process that was repetitive and prone with errors.

This triggered his entrepreneurial instincts at age 27 in 1998 to create the nation's first 100% web-based payroll company—Paycom.

Today, Paycom has 36,820 clients, and in 2023, the company expanded into Canada and Mexico and launched Global HCM™, which increased the availability of its software to users in more than 180 countries and 15 languages and dialects. This year, Paycom also entered the U.K. market.

In 2023, Paycom reported a full-year revenue of $1,694 million, a 23% year-over-year increase. Additionally, their recurring revenues for the year were $1,665 million, an increase of 23.2% from last year.

For EBITDA (a measure of profitability), the company reported a figure of $719.3 million, compared to $579.7 million in 2023.

Richison’s focus on staying at the forefront of technology trends has contributed to the company's growth, capitalizing on trends others missed–a common thread with S&P 500 CEOs.

Chad Richison’s Humble Beginnings

Richison built Paycom from the ground up not just with innovative, forward-thinking ideas, but with his own determination, hustle, and grit to push him.

Raised by a milkman and a dental assistant, he spent his initial six years in the low-income south side of Oklahoma City before relocating to the rural town of Tuttle.

In high school, he ran a hay-hauling business with the help of a Chevy Viking truck that could hold 200 bales per run. Working all day long, each bale of hay netted him 36 cents in revenue. "I was a 16-year-old running two crews," Richison said in Investor’s Business Daily. “The pay was pretty good, too. I could make $600 to $700 in cash per week.”

When he started Paycom, Richison knocked on doors and worked the phones to land new clients. That hustle and leadership served as the foundation for his future success.

Investing in the World

Chad Richison is one of many top CEOs who takes corporate social responsibility seriously, creating a safe and inclusive workplace, giving back to the community, and minimizing a business’s environmental impact.

Richison and his family lead the Richison Family Foundation, which supports education, health, foster care, and other mental health initiatives.
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In 2015, he founded the nonprofit Green Shoe Foundation, which helps adults all over the country and beyond deal with childhood trauma. To do so, the foundation provides no-cost, five-day mental wellness retreats guided by licensed therapists for adults ages 21 and over.

Valuing Employees

Prioritizing the wellbeing of Paycom’s team, Richison exemplifies his commitment by focusing on employees. Forbes noted in 2020 that his emphasis on employee welfare stems from a genuine respect for their hard work.

The company offers an employee giving program in which employees can donate to a different non-profit through the Paycom app, and the donation is payroll-deducted. These donations supported nonprofit organizations in providing essential services to vulnerable groups, including those dedicated to education, STEM programming, mental health, veterans' support, children and youth programs, and environmental education. “We believe in investing in our communities through both corporate and employee giving,” he said in Paycom’s 2022 Corporate Social Responsibility Report. In 2023, Paycom donated $2.3 million to communities, with $220,000 of that coming directly from employees.

In 2023, Newsweek recognized Paycom as one of America’s Greatest Workplaces, Most Trustworthy Companies in America, and America’s Greatest Workplaces for Diversity, further solidifying Richison's commitment to fostering a positive and inclusive workplace culture.

"Investment comes before achievement and that's certainly the case with our people," Richison said to Investor’s Business Daily. "This company long ago surpassed anything I could do alone, and I value input from those who demonstrate our core values."

Final Takeaways

Paycom ranks prominently among the leading SaaS (Software as a Service) companies in the U.S. Nevertheless, the company, under its leader's guidance, does not succumb to complacency. Chad Richison does not find satisfaction in past achievements, expressing to Investor’s Business Daily, "It's not about what has already been built; it's about the opportunities that lie ahead.”