HR Tech
HR technology SaaS platforms handle payroll, HRIS, recruiting, and workforce management. HR tech buyers are sticky — switching payroll or HRIS systems is expensive and disruptive — which tends to produce high gross retention even at companies with moderate NRR. Track 4 public HR tech SaaS companies by Rule of 40 and EV/Revenue.
What drives multiples in HR Tech
HR tech multiples reflect the stickiness of payroll and HRIS workflows — switching costs are high, which produces durable gross retention even at companies with modest NRR. Investors reward HR tech companies that demonstrate cross-sell success across the employee lifecycle (recruiting → onboarding → payroll → performance), as total contract value per employee is the key expansion lever.
Top performers in this sector
Sector vs. all public SaaS
EV / Revenue5.5x vs 5.1x all-SaaS avg
Gross Margin83% vs 74% all-SaaS avg
Rule of 4038% vs 33% all-SaaS avg
Revenue Growth YoY14% vs 17% all-SaaS avg
At or above all-SaaS median
Below all-SaaS median
All-SaaS median
4 Companies
PI
Paychex, Inc.
PAYX
Fastest growtharrow_outward
Market Cap
$45.2B
EV / Rev
7.8x
Rule of 40
50
Gross Margin
74%
PS
Paycom Software, Inc.
PAYC
Most efficientarrow_outward
Market Cap
$10.8B
EV / Rev
5.0x
Rule of 40
36
Gross Margin
83%
PH
Paylocity Holding Corporation
PCTY
Lowest multiplearrow_outward
Market Cap
$8.5B
EV / Rev
5.0x
Rule of 40
27
Gross Margin
75%
WI
Workday, Inc.
WDAY
Largest in sectorarrow_outward
Market Cap
$53.6B
EV / Rev
5.5x
Rule of 40
37
Gross Margin
98%
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