Is Paylocity the Right HRIS for My Company?

Paylocity is the perfect HRIS solution for your business needs. Uncover the key features, benefits, and potential drawbacks of Paylocity as you evaluate its suitability for your human resources management

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
user comparing HRIS systems

Things to Consider When Shopping for HRIS Systems

The first thing to keep in mind when exploring HRIS systems is that you should look for an HRIS that is flexible and easy to use. A good software solution will allow you to customize it to your organization's needs, ensuring it doesn't become obsolete as your business grows over time. An affordable option is also essential—especially if the company has a small budget or just started out.

A great software solution will have a track record of success with other businesses similar to yours, so make sure that any system you choose has a good reputation in the industry. If possible, inquire about its customer service history; while some providers offer 24/7 phone help lines or live chat systems, others prefer email support only. There are also options available which provide customers with access via text message at any time of day—even after business hours!

When looking through potential vendors' websites, try searching their database using keywords like "HRIS" or "payroll software." This will give you more insight into what features each vendor offers so that ultimately they can meet all of your needs within one platform rather than having multiple pieces installed separately (which would require additional costs).

Features to Look for in an HRIS

Flexibility: When evaluating HRIS software, consider how flexible the software is. You want to make sure you can customize it to fit your organization's needs and processes, rather than having to adapt yourself to fit a pre-existing system that isn't designed for your business specifically. A good HRIS should have a wide range of features that allow you to adjust it easily. For example, if you need employee onboarding or offboarding procedures but aren't sure how those are handled in other programs, look for one that lets you create these manually or set them up with workflows so they're automated through the program itself rather than requiring an additional step outside of what it provides out-of-the-box (like sending new hires an email instructing them on which forms need filling out).

Integration: This refers both within and without your company—that is, who else uses this particular solution? How well does it integrate with other software providers within our industry? How secure is its connection between servers? Does this platform offer any integrations with payroll providers (if using them)? Can we connect our existing systems seamlessly together without needing third party help? Will all data be shared correctly between systems seamlessly?"

Ease of Use: How easy is it to use? Does the software have a user interface that’s intuitive and easy on the eyes (even after hours)? Can we train new employees to use it quickly? Will they be able to learn from online tutorials or do we need in-person training? What level of support does this provider offer?"

Speed: How long does it take for data to be entered into the system? How long does it take for reports to be generated? What kind of reporting functionality does this product offer, and how easy is that functionality to use?

Paylocity User Reviews

  • Paylocity has an average rating of 3.9 out of 5 stars on G2 Crowd, with its highest ratings coming from clients who use Paylocity to manage their payroll and budgets.
  • Paylocity has a 4.1 out of 5 star rating on Capterra, with its highest ratings coming from the usability of its benefits management system and its employee self-service portal.
  • Paylocity has a 4.5 out of 5 star rating on TrustRadius, where it was named one of the best HR software vendors for payroll services in 2018 (alongside industry leaders like Ultimate Software)
See Your HRIS Matches: Use our free HRIS matching tool to see which vendors are most aligned with your project goals - with cost estimates and pros/cons

Paylocity Pricing

Paylocity charges employees on a per employee per month (PEPM) basis. A Paylocity subscription can cost anywhere from $18-25 PEPM, depending on the size of your company and the modules included in your scope.

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

Paylocity Pros and Cons

  • Paylocity is a cost-effective solution for mid-sized companies that want an all-in-one HRIS system
  • Paylocity has deep relationships in the broker and insurance carrier communities, allowing for better carrier connectivity
  • Paylocity can serve as a global system of record and recently acquired a global payroll company too
  • Paylocity has open APIs and pre-built integrations with a variety of vendors
  • Paylocity implementations can be challenging due to "too many cooks in the kitchen" and a lack of holistic project management
  • Paylocity's time & attendance and benefits admin tools are somewhat limited and Paylocity will often use 3rd parties when they cannot meet the client's needs
  • Scalability is a concern with Paylocity as custom workflows and multi-EIN scenarios can break the system's rules and create manual re-entry for admins

When choosing an HRIS like Paylocity, be sure it is the right fit for your business.

When choosing an HRIS like Paylocity, be sure it is the right fit for your business. Keep in mind features like automation and reporting, as well as the user reviews on ease of use. Don't forget to consider the company's reputation and customer service options, as well as its price point. Make sure that you're able to integrate this HRIS with your payroll provider as well.


There are many HRIS systems on the market that can help you manage your employees, benefits and payroll. Paylocity is one of the most popular choices because it offers so much functionality and flexibility in a user-friendly package. But before you jump into signing up with this HRIS or any other system, it’s best to do some research so that you make an informed decision based on what’s right for your company.

1. What is Paylocity?

Paylocity is a cloud-based HRIS (Human Resource Information System) provider that offers solutions for managing employee compensation, benefits, payroll processes, and more.

2. What are the key features of Paylocity?

Paylocity offers features such as payroll processing, benefits administration, time tracking, integration capabilities, and an employee self-service portal.

3. How does Paylocity pricing work?

Paylocity charges on a per employee per month (PEPM) basis, typically ranging from $18 to $25 depending on company size and included modules. Implementation fees are also charged, typically around 10-20% of the annual software fees.

4. What are the strengths of Paylocity?

Paylocity is praised for being a cost-effective solution for mid-sized companies, its deep relationships in the broker and insurance carrier communities, global system of record capabilities, open APIs, and pre-built integrations.

5. What are the weaknesses of Paylocity?

Challenges with Paylocity implementations, limited functionality in time & attendance and benefits admin tools, and scalability concerns due to custom workflows are noted weaknesses.

6. Is Paylocity suitable for my business?

Paylocity is recommended for mid-sized companies seeking an all-in-one HRIS system with functionality and flexibility. However, businesses should consider factors like automation, reporting, user reviews, reputation, customer service, and integration capabilities before making a decision.

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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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