If your company doesn’t print their own paychecks, they probably use a service like Paychex. Recently, CEO of Paychex came out with some information on our economic state, as featured on the Motley Fool.
“Over the past six months, we experienced companies going out of business increasing 12%, new business starts declining 13%, checks per client decreasing 1.5%, and we saw lower levels of new hire reporting,” said CEO Jonathan Judge.
It’s hard not to panic when news like this comes up. But what are we really seeing here? Paychex handles a good portion of the economy, to be sure. However, new businesses, especially small ones, have no reason to use a service like Paychex when they can just do the same things in-house for less. Especially when you consider the price of external services as compared to doing the same stuff in-house. Speaking strictly about the comparison between cold hard cash to pay for the outsourced services vs the extra time being put in my existing staff to do the same work, it is usually less expensive to pay existing staff to do additional work.
So, be concerned while you read those statistics, because for the businesses that do use Paychex, it paints a very scary landscape. Just remember that it doesn’t cover the whole economy. Information can be scary. Information in context is empowering.