PrismHR isn’t interested in making software that will suit all companies everywhere. They specialize in providing solutions for professional employer organizations (PEOs) and administrative service organizations (ASOs) – those that provide outsourcing HR services to other businesses. Their software helps over 88,000 of these outsourcing organizations delivers payroll, benefits and HR to 2.2 million worksite employees across the country.
CEO Gary Noke knew there was niche to be filled in the HR software market. “Regulation favors big business but impedes small business,” Noke said. “PEOs and ASO’s give smaller companies an efficient and cost-effective way to deliver world-class benefits and payroll to their employees, and attract and retain good talent. Their ability to do that in an exceptional way depends heavily on the relevance, convenience, and efficiency of the HRO software they are using.”
PrismHR’s founder is Frederick Davison. He began his career as an information systems consultant prior to creating his company in 1985. Opening up his first office in Boston, Davison operated his business as FW Davison & Company for the first three decades. The software provider received their first minority growth investment from Accel-KKR in 2014.
Perhaps seeing the early potential for cloud-based applications in the HR software sector, Davison announced his first acquisition of OpenNotus in 2014. Described as a “cloud-based human capital management solution”, it is an employee onboarding system that streamlines the hiring process for both employer and employee. FW Davison officially rebranded themselves as PrismHR in 2015 as “part of a cohesive strategy that reflects the company’s broader commitment” to their customers.
PrismHR then acquired Summit Software in February 2016 and it now operates as subsidiary of the company out of Little Rock, Arkensas. The addition of Summit’s offerings to PrismHR’s product line meant more options for clients in the short term and a more comprehensive HR platform in the long term.
In 2017, they acquired Netwise Technology, the creators of ClientSpace – a client service and customer relationship management platform. In a press release, Randy Wadle, NetWise co-founder and now senior vice president at PrismHR, spoke about his commitment to collaborating together. “We’ve partnered with PrismHR for more than 12 years,” said Wadle. “Now we’re excited to join the team and continue to expand and integrate ClientSpace and PrismHR to deliver the industry’s most efficient, end-to-end software solution for PEO’s and ASOs.”
In a turn of events, PrismHR was then acquired by Summit Partners in 2017. Described as a “majority investment from a global growth equity investor”, the new funding was to be diverted towards helping the company accelerate their delivery of additional software and services to 340 human-resources-outsourcing client organizations.
Their most recent move towards a full-service HR software suite comes with their January 2019 partnership with AgileHR. Now integrated with PrismHR, the application offers employment performance services as part of their platform. “We’ve heard from our customers that they want a flexible performance management solution at a low price point so they can strengthen client relationships and expand their services,” said Kraig Sanders, Manager of Strategic Partnerships, PrismHR.
“AgileHR allows the clients of HR outsourcers to easily set employee goals, provide timely employee development, and complete reviews with just a few clicks,” said Eric Carlson, President and CEO of AgileHR. “HR outsourcers can now streamline their clients’ employee review process, increasing the value they provide.”
According to their website, PrismHR reports that client companies experience productivity improvements of 55 percent in payroll administration; 76 percent in benefits administration; and 71 percent in client services.