Factorial: OutSail’s 2023 HRIS Review

Explore Factorial's rise as a key HRIS player in Europe, its unique features, and suitability for businesses, especially in the realm of European compliance.

Brett Ungashick
OutSail HRIS Advisor
September 29, 2023
Overview of Factorial HRIS platform

Factorial, a Human Resources Information Systems (HRIS) company, has recently become a unicorn and is gaining popularity in Europe. The company was founded in Barcelona and this review will explore its background, its quick rise to success, and the reasons why it stands out in the European HRIS market.

Factorial has become synonymous with HR innovation in Southern Europe, a region traditionally embracing the fusion of technology and tradition. Let's explore this HR powerhouse's journey and see if it aligns with the needs of your business.

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An Overview of Factorial

Factorial, with its cost structure ranging from approximately $7 to $15 per employee per month (PEPM), positions itself as a cost-effective yet comprehensive HRIS solution. Founded in 2016, this Spanish startup has made significant inroads into the European market, particularly in Spain, Italy, France, and Portugal.

One of Factorial's standout features is its specialization in catering to European compliance requirements. It has struck a chord with small and medium-sized businesses (SMBs) seeking a reliable HR solution that understands the intricacies of European labor laws and regulations.

See a demo of Factorial's global HRIS platform

The Strengths of Factorial

1) Rapid Growth:

Factorial's journey from a startup to a unicorn is a testament to its rapid growth. With substantial fundraising rounds, Factorial has gained the trust and confidence of investors, signaling a bright future.

2) Tailored Tools:

Factorial offers a suite of HR tools to streamline various processes. Notably, its timekeeping, absence tracking, and holiday management tools empower HR teams to manage these crucial aspects of workforce management efficiently.

3) Modernized Approach:

In the ever-evolving world of work, traditional performance management no longer suffices. Factorial recognizes this and offers contemporary methodologies for talent development and performance management. Integrated goal-tracking and engagement tools provide a holistic approach to enhancing employee performance.

4) Holistic Financial Management:

Factorial extends its reach beyond traditional HR functions. Its financial management module simplifies expense management, and providing company cards that sync seamlessly with payroll reports simplifies financial tracking for employees and administrators.

5) Integration Prowess:

Connectivity is the lifeblood of modern businesses, and Factorial shines in this aspect. Its robust integration marketplace boasts a multitude of pre-built connections to premier HR point solutions, ensuring adaptability to the diverse needs of today's organizations.

Areas of Consideration with Factorial

1) Market Focus:

While Factorial's prowess in serving SMBs is undeniable, larger enterprises may find it less scalable for their needs. Its features and pricing are tailored to cater to the specific requirements of smaller organizations. Therefore, businesses eyeing substantial growth should carefully evaluate its suitability.

2) Payroll Integrations:

Factorial offers transferable payroll reports for seamless payroll management. However, it may not provide as comprehensive direct payroll integrations as some competitors. It's worth noting that Factorial has ambitious plans to introduce its native US payroll platform in 2024, which could address this limitation.

3) Support Limitations:

Factorial adopts a relatively hands-off support approach, requiring administrators to take a proactive role in their learning journey. While this approach empowers users to harness the platform's capabilities independently, it may not suit businesses seeking extensive handholding and support.

Deciding if Factorial is Right for Your Business

  • European Expertise: Factorial's in-depth understanding of the region's compliance requirements is a significant advantage if your business operates in Europe. It simplifies the complex landscape of European HR regulations and ensures that your HR processes remain compliant, saving you time and potential legal headaches.
  • Simplicity vs. Customization: Factorial's simplicity is one of its strongest selling points. It's user-friendly and easy to navigate. However, businesses with highly customized workflows or intricate permission structures may find certain limitations in the platform. Consider whether the platform's straightforwardness aligns with your organization's needs and complexity.
  • Integration and Expansion: Factorial's potential in direct payroll integrations is an area to watch. If your business is growing, Factorial's plans to introduce a US payroll platform in 2024 could make it a valuable long-term partner for expanding businesses with international ambitions.


Factorial is a prominent and influential player in the constantly evolving HRIS industry in Europe. Its dedication to simplicity, compliance, and cost-effectiveness has earned the trust of small and medium-sized businesses across Southern Europe. Venture capitalists in the region have also acknowledged its potential and confirmed its status as a unicorn.

Factorial excels in many areas, offering a suite of HR tools that cater to the needs of modern businesses. Its rapid growth and specialization in European compliance requirements make it a compelling choice. However, businesses should be aware of its primary focus on the SMB market and potential configurational limitations.

To sum up, Factorial is a shining star in the European HRIS galaxy, illuminating the path to streamlined HR processes. While it excels in many aspects, embracing Factorial as your HRIS solution should align with your organization's unique requirements and growth aspirations. As it continues to expand its footprint and innovate, Factorial remains a compelling choice for businesses seeking an accessible and compliance-oriented HRIS platform in the European landscape.

1. What is Factorial?

Factorial is a Human Resources Information Systems (HRIS) company based in Barcelona, Spain. It offers a comprehensive HRIS solution tailored to European compliance requirements, particularly suitable for small and medium-sized businesses (SMBs).

2. What sets Factorial apart in the European HRIS market?

Factorial's rapid growth, specialization in European compliance, tailored HR tools, modern approach to performance management, and robust integration capabilities distinguish it in the European HRIS landscape.

3. How does Factorial cater to European compliance requirements?

Factorial's platform is designed to address the complexities of European labor laws and regulations, ensuring that HR processes remain compliant with local norms. Its focus on compliance simplifies HR management for businesses operating in Europe.

4. What are Factorial's strengths?

Factorial's strengths include its rapid growth, tailored HR tools for timekeeping, absence tracking, and performance management, holistic financial management features, and robust integration marketplace.

5. What considerations should businesses keep in mind when evaluating Factorial?

Businesses should consider Factorial's primary focus on SMBs, potential limitations in payroll integrations (though plans for a native US payroll platform are underway), and the hands-off support approach that requires users to take a proactive role in learning the platform.

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

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