President and Chief Executive Officer at Paychex
Thanks, Todd [Phonetic]. Good morning, everyone. Thank you for joining us for our discussion of the Paychex second quarter fiscal year '23 earnings release. Joining me today is Efrain Rivera, our Chief Financial Officer.
This morning before the market opened, we released our financial results for the second quarter ended November 30. You can access our earnings release on our Investor Relations website. Our Form 10-Q will be filed with the SEC within the next day. This teleconference is being broadcast over the Internet and will be archived and available on our website for approximately 90 days. We'll start the call with an update on the business for the second quarter and then Efrain will review our financial results and outlook for fiscal year '23, we'll then open it up to your questions.
We delivered solid financial results for the second quarter with total revenue of 7% and adjusted diluted earnings per share growth of 9%. Demand for our comprehensive solution suite remained strong and we are well positioned to help our clients succeed. Our unique combination of leading HR technology, HR expertise and the wide breadth of solutions we have to address the many needs in the marketplace continue to help small and mid-size businesses navigate this very dynamic and challenging environment. We continue to closely monitor the macroeconomic environment and our internal leading indicators.
The latest findings from our Paychex IHS Small Business Employment Watch, we build moderating growth in jobs and steady growth in wages. Our clients continue to be challenged by the continuing impacts of the pandemic, inflationary pressures and the challenges of this labor market, however, small and mid-size businesses continue to show the resilience. Our revenue retention remained solid as we focus on retaining clients and driving increased value and penetration of our HR outsourcing, HCM software and retirement solutions.
Our overall HR outsourcing business continues to perform well with strong growth in worksite employees and record, record revenue retention. We achieved a major milestone this quarter. We now serve over 2 million worksite employees across our ASO and PEO business, clearly establishing us as a HR leader. Our industry-leading HR advisory services sets us apart and our certified HR professionals are truly a unique asset, as they're advising our clients on HR issues as well as leveraging our HR technology and the analytics from our vast SMB dataset to help our clients achieve greater operational efficiency, increased employee engagement and reduced turnover.
While demand for our technology and HR outsourcing solutions remains strong, we continue to see shifts in what offerings clients find are the best fit for their current situation. Both early and during the pandemic, we saw lower demand for adding employer health benefits. We continue to see this trend and also high demand for our ASO solutions, driven by businesses seeking immediate assistance with HR issues and filing for tax credits, but delaying decisions on adding or changing their insurance offering to their employees. In addition, the lower medical plan sales and participant volumes in our health and benefits area of our insurance agency that we discussed last quarter continued in the second quarter and we saw some similar trends in our Florida at-risk insurance program in the PEO, impacting revenue growth in that area of the business. Awareness and demand of our Employer Retention Tax Credit or ERTC service, which helps clients maximize eligible tax credits, continues to grow. To date, we've helped more than 50,000 clients secure billions in ERTC.
A recent survey, actually showed just 63% of business -- that 63% of business owners didn't even know that they were eligible for these credits. We continue to educate existing clients of the benefits, as well as leverage this service to attract new clients. We continue to invest and enhance our product suite and customer experiences. In November, we released our enhancements to Paychex Flex, focused on further streamlining the recruiting, onboarding, time and attendance and benefits administration experiences. Through our HR technology, three out of four Paychex clients surveyed have shorten the time required from recruiting screening tracking and onboarding new employees. Those clients reported an average time savings of 26% indicating that the typical two-month recruiting cycle has now been reduced to just six.
I'm very excited about our Retention Insights offering, which continues to deliver strong results for our clients at a time when businesses remain committed to retaining their existing staff. This feature uses predictive analytics, coupled with our vast datasets to provide insights on potential employee flight risk. Clients leveraging the retention insights offering are showing a 15% reduction in turnover when compared against their industry peers. We're very pleased we received the Bronze Brandon Hall Group Excellence Award for Best Advance in HR, predictive analytics technology for this solution. This is the 10th consecutive year they've recognized us.
During the quarter, we also were recognized with the IDC 2022 SaaS Customer Service Satisfaction award for core HR. We are honored to have received this award as another confirmation of the power of our HR technology and the quality of our advisory services. These awards continue to validate that Paychex as a technology leader and that our focus on HR is delivering real impact for our clients and their employees.
At this time, we're heading into our critical year-end season. We are fully staffed in both sales and service and we have good momentum. I want to thank all the employees in advance for all their hard work and dedication in making this the best year-end ever.
Now, I'll turn it over to Efrain who will take you through our financial results for the second quarter. Efrain?