Justworks, Inc.

Justworks, Inc. simplifies HR management for small businesses by providing integrated solutions that encompass payroll, benefits, and compliance, enabling owners to focus on their core operations. Founded in 2012 in New York, US, Justworks, Inc. operates as a Professional Employer Organization (PEO) that streamlines HR functions for small businesses.

The company has successfully raised a total of USD 16. 838 mn across several funding rounds, with the latest being a Series E round in January 2020, which raised USD 50 mn led by Union Square Ventures and FirstMark Capital. The co-founders, Isaac Oates, Kara Yates, and Tim Suski, have a history of entrepreneurial ventures, contributing to the company's innovative approach to HR solutions. Justworks is headquartered in New York and has expanded its services to clients across various geographical regions, including the United States and international markets.

Justworks primarily offers a comprehensive suite of HR solutions designed specifically for small businesses. Their core product is a Professional Employer Organization (PEO) service that integrates HR, payroll, benefits, and compliance management into a single platform. This service addresses the complexities of human resource management by providing small business owners with intuitive software paired with human support, thereby reducing HR-related challenges and allowing companies to focus on their core operations. Justworks serves a diverse client base that includes startups, growing businesses, and companies managing remote teams, enabling them to hire and onboard employees efficiently, manage payroll, and ensure compliance across varied regulatory landscapes.

Their products are available in multiple geographical markets, including the United States and international territories, facilitating remote hiring without the burdens associated with local entity setup. In 2020, Justworks generated revenue of USD 742. 4 mn, with an EBITDA loss of USD 14. 8 mn.

The company processed over USD 25. 6 bn in payroll, indicating significant transactional volume with clients relying on Justworks for their payroll processing needs. Clients engage with Justworks under a structured pricing model that aligns with the number of employees and the specific services required, which may include HR management, employee benefits administration, and compliance support. Additionally, their PEO offerings encompass tax filing services, having processed over USD 6 bn in federal taxes in the same year.

Justworks plans to utilize the USD 50 mn raised in its Series E funding to expand its operations and broaden its business reach. The funding will support new product development and enhancements to their existing HR solutions. The company aims to target additional geographic markets and continue enhancing its service offerings to better serve its growing client base. These initiatives are expected to position Justworks for sustained growth in the competitive HR solution landscape.