The head of a payroll services company told CNBC Wednesday that he doesn’t see signs of slowdown in medium-sized businesses, despite growing fears of a looming recession.
Paycom CEO Chad Richison said his company may not be a great “proxy” for the rest of the economy, but his company has a pulse on hiring in the country. The cloud-based human capital management provider has digitized how employers run their HR shops.
The tech firm is a disruptor in the payroll industry with more than 23,500 clients and targets businesses that employ 50 to 5,000 people.
“I think the economy’s been strong,” Richison said in a one-on-one with “Mad Money’s” Jim Cramer. “We aren’t really seeing a deterioration of growth in [medium-sized businesses], but, you know, we’re waiting to see what happens.”
Cramer noted that worries of a yield curve inversion — where short-term bonds eclipse the return rates on longer-term ones — has many investors worried that the U.S. economy is falling into a major economic downturn.
After being in business for more than two decades, Richison said his company weathered the recessions last decade.
“As a growth company, it doesn’t impact us as much as it might if we were more at a steady state,” he said.
Paycom went public in 2014. Since its $15 IPO, the stock has set a number of new highs this year. Shares gained 2% in Wednesday’s session, closing at $251.90 a piece.
Shareholders made 75 cents a share in the June quarter, which beat estimates by 5 cents, according to FactSet. The company also topped revenue expectations recording nearly $170 million in sales.