Los Angeles, California Jan 22, 2021 (Issuewire.com) - Covid-19 had a tremendous impact on the HRO sector in 2020. Despite the challenges, Mercans, one of the world's leading global payroll outsourcing companies, one of the most trusted international HRM outsourcing providers, and a reference in international PEO GEO EOR services and international mobility consulting services, had one of its best years ever. Before the crisis outbreak in March and massive lockdown in almost all geographies, the company had a great start to the year. Then, Mercans managed to take the whole year in stride, maintaining steady revenue growth and proving the resilience of an industry-disrupting business model, unparalleled HRO services, and innovative SaaS products.
Like any other industry, the global payroll and international HRM outsourcing sector have been affected by the worldwide pandemic. However, Mercans stood up exceptionally well when the economic environment went upside down. Mercans saw higher levels of trust and confidence in its global payroll and human resources management SaaS platforms, partly because of stay-at-home mandates and work-from-home behaviors, but mostly thanks to the timely implementation of an effective action plan. The company faced Covid-19 headwinds and showed business resilience by identifying opportunities and leveraging technology and partnerships, which eventually led to significant profitability and cash flow figures. The company confirmed its ability to mitigate a global crisis's financial and operational impacts. Simultaneously, the management and its teams reaffirmed their unique positioning in the global payroll market and the human resources outsourcing market.
Before revealing its annual results, Mercans announced in December 2020 that its staff's size went from around 500 highly-qualified international human resources and global payroll specialists to more than 700 HCM experts. Besides, thanks to its original business model combining holistic non-aggregated services with comprehensive, ever-compliant operations, the total number of Mercans clients, all service lines included, moved up from the previous 5,000 to more than 8,000 with a stable 97% customer retention rate. The number of Mercans clients went from around 1,500 to more than 5,000 for multi-country payroll outsourcing services only. More significantly, the number of payslips treated in most geographies went from the previous 2.5 million per annum in 2019 to more than 4 million per annum in 2020, while having the largest payroll per country in the industry with a record headcount of 25,000. Finally, the company maintained its annual revenue growth of 50%, confirming a consistent trend for the past ten years.
By mid-2020, Mercans had 1,507 active deals for multi-country payroll outsourcing services, including 732 new MCP deals signed during the first half of the year, showing an increase of 15% compared to the 2019 same period. Mercans signed 40% of these deals in North America, 34% in Europe and the UK, 11% in the Middle East and Africa, 6% in Australia and New Zealand, 6% in the rest of the Asia Pacific region, and 3% in Latin America. In terms of global reach and multi-country payroll activities, it is interesting to note that 38% of the deals cover 6 to 10 countries, and 24% cover more than ten countries. The percentage of agreements covering multiple countries within the same region (MENA, for example) went up to 68%. The percentage of contracts covering various regions (i.e., global deals) increased and reached 32%. Overall, Mercans' global country coverage - with direct local presence - expanded to 175+ countries while maintaining its native payroll and HRM software solutions designed for 140+ specific local markets, e.g., three times more than any other vendor in the global payroll outsourcing (MCP) services market or the international human resources outsourcing (HRO) market!
"I'm extremely proud of our teams' efforts. We all have reacted quickly and with determination to an unprecedented global pandemic. Thanks to all our people's contributions, we have limited the crisis's impact on our customers' multi-country payroll and HRM operations and Mercans' global activities. Our annual results are surprisingly good, considering the massive impact of the Covid-19 outbreak. Although we remain very cautious about the future developments of the pandemic, we look forward to 2021 with great confidence, as economies in all our core markets across the globe seem to recover slightly more quickly than initially projected," said Marko Taylor, CEO of Mercans. "I know that with all our teams' dedication to keeping assisting clients during this difficult period, as well as all the initiatives developed to make our solutions even more efficient, we will emerge from these challenging times stronger than before. Mercans has done a great job unfolding a strategy that balances organic growth with economic choices and strategic partnerships," added Marko Taylor.
It is becoming evident that a growing number of multi-country payroll and HRO customers - traditionally using the solutions from big names in the industry - are now leaning towards Mercans for global payroll services and products, or HRO solutions. Mercans proposes a better business model compared to the industry competitors', a better value proposition, and, of course, provides the best global payroll and HRM software products in the market. That's the reason why in 2020, Mercans generated more revenue than in 2018 and 2019. Within the multi-country payroll segment, Mercans' growth essentially came from the HR Blizz SaaS solution, which has seen much higher sales levels and some market share gains. This is due to the platform's increased number of features, enhanced functionality, improved customer service, and more substantial marketing efforts from its vendor. The use of HR Blizz might see a significant rise in the upcoming months because of the transformation of Mercans customers' behavior. HR Blizz will be a strong driver of earnings growth for this global payroll and HRM outsourcing services provider.
2020 is also the year when Mercans was nominated in no less than four award categories at the Global Payroll Association Awards 2020: best international payroll provider, best multi-country payroll software supplier, best international PEO GEO EOR services provider, and best global mobility services provider. Mercans was also included - for the second year in a row - in the international top 5 global payroll service providers' list as Major Contender in the Everest Group multi-country payroll (MCP) solutions PEAK Matrix assessment 2020 and was also ranked as the 1st Non-Aggregator Global Payroll provider. As a result of Mercans' proactive crisis management, and thanks to its disruptive business model, the company has managed to act decisively in 2020, making appropriate financial choices and securing a realistic cash management approach, which included swift actions to minimize costs, placing Mercans in a powerful position in the global payroll and international human resources outsourcing market.
"Our good results demonstrate the strength of our business model. We have seamlessly confirmed our positioning as a leading, innovative business that is client-focused and mobile-led, delivering complete end-to-end customer experiences without intermediaries. We have been resilient enough over the past months to resist the crisis, and we emerge from it in pretty good shape. We have looked after our teams and are well-prepared to face the post-Covid world with motivated and experienced people. Our customers continue to be our utmost priority. Therefore, we have invested in additional frontline staff to handle the growing number of client inquiries. Best-in-class customer service will be critical in the upcoming years, and we remain committed to developing industry-leading global payroll and HRO solutions. We will also develop much further global mobility outsourcing services, relocation strategies, international mobility management solutions, international assignments and mobilization management, global relocation of staff, mobility programs management support, and international employment outsourcing solutions at large. We will thrive in 2021, as more and more companies from the Forbes Fortune 500 list migrate to our employer of record outsourcing services as a reference in the international PEO GEO EOR market, global talent acquisition outsourcing services, global employees' leasing, and trusted international staff onboarding solutions. They are keen on relying on our international BPO services and outsourced back office and front office services, our single cloud-based SaaS platform for global payroll management, and our international recruitment and global ATS platform," continued Marko Taylor.
Mercans is a technology-led business with a diversified customer portfolio. Before the pandemic, Mercans was already performing well and growing steadily thanks to its leading position in a competitive marketplace and an agile, flexible, adaptable, innovative, and driven-by-change business model. The company's vision is to continue leading the global payroll and HRM outsourcing industry as the most trusted HRO companion, strengthen and grow its leading services and products, build strong relationships, and leverage them to serve customers' global mobility needs. Mercans also keeps prioritizing multi-country statutory compliance, following local labor laws and employment regulations worldwide. To push the company to deliver further success in a post-Covid era, Mercans focuses more than ever on four areas: 1/ HR Blizz and Mesaar, Mercans' SaaS solutions, 2/ customer service, 3/ staff development, and 4/ new geographic locations.
Updates for Mercans' two flagship global payroll and HRM software solutions have been rolled out in early 2020 across all markets. New features and functionality have been tested; the launch of offices in new markets has been prepared. There is a continued focus on ensuring top satisfaction and top-notch service to customers. Emphasis is put on customer satisfaction, and the upgrading process for the same - already 75% complete - is ongoing. The utilization of artificial intelligence (AI) and machine learning (ML) was increased to empower the automation of Mercans' online platforms. An enhanced engine has been integrated into the proprietary software while an even faster customization capability is implemented. Geographically, a broader offer is deployed in several countries to generate growth. Strategically, Mercans continues to invest in the future to come out as a winner from the crisis. "Europe, Australasia, the Americas, and the Middle East, our powerhouses, are most likely to recover from the pandemic better than other parts of the world. Our company will emerge strong and well-positioned from the crisis in these marketplaces. We will have sufficient funds available to increase marketing spend to meet the anticipated increase in demand," concluded Marko Taylor, Mercans' Chief Executive Officer.
About Mercans - Simplifying Employment Tasks Worldwide
Mercans is an industry-disrupting HRO services provider, expert in global payroll outsourcing solutions, multi-country PEO & GEO services, talent management, and recruitment process outsourcing services (RPO). International HR specialists with a striking local presence, we are dedicated to ensuring our clients' consistent and sustainable growth without intermediaries or third-party operators while keeping employees happy and guaranteeing local tax and legal compliance worldwide. Supported by 500+ in-country payroll and HR consultants, we are a borderless people engagement enabler with in-depth local knowledge, empowering businesses - regardless of their size or industry - with timely, scalable results, bottom-line savings, and military-grade data security. Mercans' services and cloud-based platforms already satisfy 5,000+ clients across 140+ countries.
Success-oriented and striving for excellence within budget, we have earned major multinational companies' trust, helping them expand abroad quickly and efficiently at reduced operational costs. Our proprietary HRM SaaS products HR Blizz and Mesaar are self-service tools packed with built-in features. All data are integrated into single interfaces with customizable dashboards accessible on any device. They are compatible with standard HRMS like SuccessFactors, Workday, Oracle HCM, and MS Dynamics. In all our locations, our systems and processes are GDPR compliant, ISO 9001, 20000, 27001 certified, and SOC 1 and SOC 2 audited. A registered Finpro expert, we are also a member of the Global Payroll Association (GPA) and the Global Payroll Management Institute (GPMI). Our clients are Accenture, Adidas, Airbus, ATKearney, Audi, Bayer, Bombardier, Electrolux, Ericsson, Exxon Mobil, EY, Johnson & Johnson, Kärcher, McLaren, Nokia, Tesla, Uber, and 3M, to name a few.
About HR Blizz
HR Blizz is the Mercans self-service cloud-based proprietary SaaS suite automating global payroll processes and centralizing the management of international employees' data into a single secure interface accessible in real-time, on any device. Users can consolidate and process their international teams' payroll in just a few clicks to ensure fully-compliant, error-free, and timely salary payments in dozens of languages and currencies. HR Blizz helps to streamline processes quickly with integrated functionality while rationalizing operational budgets. Powered by Mercans, HR Blizz guarantees military-grade data security, accuracy, transparency, and control while minimizing human-related data processing risks.
Mercans adheres to the highest security and privacy standards, including GDPR, to keep sensitive information protected at all times. Besides, with inside-out knowledge of local markets and business protocols and expertise in labor laws and employment regulations compliance, the Mercans teams, consisting of more than 500 experts in 140+ countries, can assist users and their people 24/7 in any time zone. They provide technical support, additional human resources management outsourcing services, and global payroll advisory to enhance customer experience and boost employee satisfaction.
For more information, call 00 1 877 637 2267.
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