Paycom Software Inc. has been hiring new employees in Oklahoma City at such a rapid pace that the company recently built a 90,000-square-foot addition to its headquarters on Memorial Road — effectively doubling the size of its offices.
Since 2011, the company has expanded its number of employees in Oklahoma City by about 500, according to data from the Oklahoma City Economic Development Trust. At the end of 2014, the company had 841 employees across the United States, but would not disclose more current employment numbers.
Paycom has also said it would add another 667 employees in Oklahoma City over the next four to five years, according to an incentive deal worth $1.25 million the company struck with the city in 2013.
In the first quarter of 2014, the company has expanded its research and development staff by 61 percent — primarily at the company’s offices in Oklahoma City and Dallas.
CEO Chad Richison said Oklahoma City has no shortage of talent with which to grow his vision for the company.
“It hasn’t been a challenge for us — there are a lot of actually very excellent programs for computer science here in Oklahoma as well as in Dallas,” Richison said. “There are also people that we may hire who aren’t necessarily from here but who choose to live here also.”
The company is known for throwing annual appreciation parties for its employees and offering perks such as subsidized lunches for workers. One recent Friday, employees wore brightly colored plastic leis at the company’s headquarters for a monthly luau-themed work party. Employees get flowers each year to celebrate the anniversary of their hire date with the company.
Most of the company’s headquarters on Memorial Road is decorated in various shades of green — the color of money and also the color of Paycom’s logo. Richison’s office is covered in green as well, including the framed prints of golf links that adorn the walls.
His vision is to make Paycom the provider of a single database for employee information that follows a worker from the time they are a job candidate to retirement.
Most of Paycom’s energy now is focused on developing new tools for its human resources products, and opening sales offices across the country. The company has opened five new regional offices — in Baltimore, Indianapolis, Philadelphia, Portland and Silicon Valley — in the first quarter of the year. The business has 31 sales teams in 20 states.
“There is a very high demand for our product,” Richison said.
Since going public on the New York Stock Exchange in April, Paycom’s stock has never risen above the opening price of $17.90 per share, but analysts remain bullish on the company. Analysts have put target prices ranging from $18 to $21 on Paycom’s stock. The stock closed Monday at $13.54.
Paycom’s stock has suffered from poor market conditions and a broad sell-off in the tech sector, said Richard Davis, an analyst for Canaccord Genuity in a note to investors.
“The market is still tender from the March-May meltdown, and we don’t know where the selling will exhaust itself,” Davis said. “What we do know is that Paycom has built a respectable business that looks to us to be very likely to profitably grow at a 25-30 percent pace for at least the next three to four years.”