Is Paycom the Right HRIS for My Business?

What is an HRIS?

HRIS stands for Human Resource Information System. It is a software system that collects and stores all the data related to employees, payroll and benefits. HRIS is used by companies of all shapes and sizes, from small businesses to large corporations.

HRIS platforms can have a wide variety of features. Common features include: payroll processing, benefits administration (health insurance, retirement savings plans), timekeeping (hours worked by each employee on each project or task), performance reviews, recruiting (finding new hires) and even training & development (providing resources to help employees learn new skills).

Many HR systems are now cloud-based rather than installed on-premise at each office location. Cloud-based systems offer many advantages over traditional on-premise systems: they're easier to maintain; they cost less up front; they can be accessed anywhere there's an internet connection; they're safer because your sensitive information isn't stored in just one place; etc.

Blog: How Long Does it Take To Buy and Implement an HRIS

How to Select a New HRIS

Before selecting your new HRIS, it's important to define your requirements, budget and project goals. You should also review vendors' websites to see their features and functionality.

Make sure that you check out the reviews from other users using websites like G2, which gathers feedback from real people who have experience with different software products. This can help you understand what others think of the product's ease of use, technical capabilities and overall value it adds to the business.

It's also a good idea to set up meetings with each vendor in order to learn more about their product, pricing and support options before making a final decision on which one is right for you.

Blog: The 8 Best Modern HRIS Systems for Small Businesses

Paycom Company Overview

Paycom is a SaaS (Software as a Service) provider for HRMS & payroll solutions.

Paycom is based out of Oklahoma. The company has over 5,000 employees on LinkedIn and is currently publicly traded with a stock ticker of PAYC.

As of March 2019, Paycom has over 630,000 users using its service to manage the human resource needs of companies across the U.S.

Free Tool: HRIS Requirements Builder

Paycom Features and Capabilities

Paycom is a cloud-based HRIS that helps businesses manage their employee compensation, benefits, and payroll processes. It's mainly used by mid-sized companies with between 50 and 500 employees.

Paycom can be integrated with other software programs like accounting, time tracking, project management—and even the company's website. But Paycom's true strength lies in its user interface: it's easy to navigate through various screens and tabs to log information about your employees or run reports on them.

Shopping for an HRIS? Work with an HRIS advisor to streamline your shortlisting, evaluations and selection - for free!

Paycom Pros and Cons

Strengths

• Paycom is a single database solution that is fully integrated from module to module, reducing the need for manual re-entry and improving reporting quality
• Paycom does a great job of incentivizing employee self-service through their quality mobile app, so that employees and managers contribute to the system and admins have less work on their plates
• Paycom provides a dedicated support model that does not require customers wait in queues or submit tickets
• Paycom recently rolled out a revamped payroll processing workflow that streamlines the workload for payroll managers

Rippling Reviews - Pricing, Pros/Cons, User Reviews

Weaknesses

• Paycom is not a great option for companies that want to integrate with multiple standalone HR systems (ATS, LMS, etc)
• Paycom is a premium priced service and doesn't discount as much as some of their peers
• Paycom's often hires early-in-career professionals for their customer support positions which can limit the amount of HR best practices a companies receives

Learn More: Use our free HRIS matching tool to see costs, pros/cons and user reviews for every HRIS vendor

Paycom Pricing

Paycom charges companies on a per paycheck basis. When converted to a Per Employee Per Month fee, a Paycom subscription can cost anywhere from $22-27 PEPM, depending on the size of your company and the modules included in your scope.

In addition to the software fees, Paycom will typically charge a one-time implementation fee. Paycom's implementation fees are typically about 10-20% of the annual software fees (i.e., $10-20K implementation fee on a $100K annual purchase)

Blog: How Much Does Paycom Cost?

If you have fewer than 50 employees:

• Payroll only costs $20 per month plus 5 cents per employee after 50 employees (this makes our payroll solution one of the most affordable on the market).
• The HR suite costs $75 per month plus 5 cents per employee after 50 employees; it comes with everything in our standard HR package but also includes time tracking and leave management tools.

If you have more than 100 employees:

• Payroll only costs $25 per month plus 4 cents per employee over 100 employees (which is still low compared to other providers).
• The HR suite costs $100 per month plus 4 cents per employee over 100 employees; it comes with everything in our standard HR package but also includes time tracking and leave management tools

Blog: How to Negotiate an HRIS Agreement

Conclusion

Paycom is a great option for mid-sized companies with full service HRIS needs, but there are other options out there. If you’re looking for an alternative HRIS to Paycom, we recommend checking out our reviews of ADP, Paylocity, Paycor, Rippling and Namely