Vendor Reviews
8 min read

Paycom: OutSail’s 2023 HRIS Review

Updated on
December 1, 2023
Maria Santos
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The Human Resources Information System (HRIS) landscape has evolved significantly recently. As businesses strive for greater efficiency, comprehensive HR solutions have emerged as a powerful tool to streamline HR processes. In this review, we look closely at Paycom, a standout player in the HRIS industry, and explore its strengths and considerations for businesses considering adopting this platform.

Paycom: A Single Database Solution in the HRIS Realm

Paycom's unique position in the HRIS arena stems from its status as a single database solution. Unlike many competitors who have relied on acquisitions and partnerships to build their systems, Paycom has developed an integrated, end-to-end HRIS without external dependencies. This strategic choice has resulted in a platform that offers a more seamless user experience and enhanced integration capabilities.

Overview of Paycom

A Glimpse into Paycom's Journey

Paycom's journey in the HRIS industry has been marked by innovation and a commitment to providing comprehensive solutions. Founded in 1998, the company has become a respected player in the mid-market HRIS segment. It caters primarily to companies with 50 to 350 employees, offering a full suite of HRIS services.

Cost Structure

Regarding costs, Paycom adopts a per-employee-per-month (PEPM) pricing model. Depending on the size of your company and the modules you require, you can expect to pay around $24 to $30 PEPM. Additionally, Paycom typically charges a one-time implementation fee, ranging from 10% to 20% of your annual software fees.

The Strengths of Paycom

1. Single Database Solution

Paycom's status as a single database solution is one of its most significant strengths. This design choice means that all modules within the system are tightly integrated, reducing the need for manual data entry and ensuring a consistent user experience.

2. Complete Module Spectrum

Paycom's suite covers every aspect of the HR lifecycle, from recruitment and onboarding to payroll, benefits administration, and performance management. This comprehensive approach makes it appealing for companies seeking an all-in-one HRIS.

3. Unified Reporting

The integrated nature of Paycom's platform leads to more holistic and accurate reporting. With data flowing seamlessly between modules, businesses can generate comprehensive reports that provide valuable insights into their workforce.

4. Commitment to Upgrades

Paycom's commitment to continuous improvement is evident in its recent payroll processing workflow update. This update aims to streamline the workload for payroll managers, reducing administrative burdens and increasing efficiency.

5. Advanced Mobile App

Paycom places a strong emphasis on employee self-service through its mobile app. This proactive approach encourages employees and managers to contribute to the system, reducing the workload on administrators and fostering a more engaged workforce.

6. Dedicated Support

Paycom offers a dedicated support model where customers have a single point of contact for assistance. This approach eliminates the need for customers to wait in queues or submit tickets, resulting in more responsive support.

7. Ideal for Smaller HR Teams

Paycom's comprehensive HRIS is an attractive option for companies with smaller HR teams. It enables them to manage all aspects of HR without needing a large in-house support team.

Areas of Consideration with Paycom

1. Limited External Integrations

Paycom's philosophy encourages customers to take an "all-in" approach to their system. While the platform supports manual file uploads and occasional API integrations, it may not be the best choice for companies requiring extensive integrations with multiple standalone HR systems.

2. Varied Experience Levels

While the dedicated support model is a benefit, account management representatives' experience and competence levels can vary. Businesses should manage their expectations regarding the level of HR best practices guidance they receive.

3. Global Reach Concerns

Paycom primarily serves as a domestic payroll and HRIS system. While it allows for storing employee data for global employees and offers modules like onboarding and performance management, it lacks global offices, language localization, or robust global payroll capabilities.

4. Pricing Model

Paycom is considered a premium-priced service in the HRIS market. Businesses should be prepared for higher costs compared to some of their peers. This pricing model can place Paycom at a 30-50% higher price bracket than other HRIS options.

5. Hidden Charges

Some businesses may encounter unexpected costs due to Paycom's specific billing model, which includes one-time implementation fees. It's essential to review the pricing structure to avoid any surprises carefully.

Deciding if Paycom is Right for Your Business

Holistic HR Needs

If your business seeks a comprehensive HR solution covering the entire HR lifecycle from recruitment to retirement, Paycom is a strong contender. Its integrated platform offers a unified experience that can streamline HR processes.

Integration Requirements

Businesses that prioritize extensive integrations with third-party HR systems, such as Applicant Tracking Systems (ATS) or Learning Management Systems (LMS), may find Paycom's limitations in this area challenging. Consider your integration needs carefully.

Budgetary Constraints

While Paycom offers a robust HRIS solution, its premium pricing model may not align with all budgets. Businesses should weigh the platform's benefits against its higher costs and potential hidden charges.

Support Expectations

If having a dedicated support model with a single point of contact is crucial to your business, Paycom offers this advantage. However, be mindful of potential variations in the expertise levels of account management representatives.


In conclusion, Paycom stands out in the HRIS market for its unique position as a single database solution. Its comprehensive suite of HR modules, commitment to upgrades, and dedication to employee self-service make it an appealing option for many businesses. However, companies should carefully consider factors such as integration requirements, budget constraints, and global reach concerns before deciding.

Despite its limitations, Paycom's robust roadmap and continuous innovation position it as a valuable player in the HRIS industry, offering a modern platform that can meet the evolving HR needs of businesses in 2023 and beyond