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Paycor
Overview
Paycor went public in 2021 symbolizing their transition from regional payroll solution, to a large national HRIS player. They have taken a best-in-class approach to growing their system, as they've acquired cutting edge ATS, Performance and Engagement solutions. Paycor is typically a cost-effective option and has landed well in industries like the nonprofit sector where their price point and scheduling capabilities are prioritized.
Market Segment
Paycor is considered a Mid-Market HRIS, which means the system works best for companies with between 50 and 350 employees. Mid-Market solutions are designed to be an all-in-one HRIS for companies with fairly standard HR requirements. Mid-Market solutions typically take about 2-3 months to implement and do not require external consultants to successfully implement and manage the solutions. Mid-Market solutions can be limited in how scalable they are, due to a lack of custom workflow tools and limited rules engines.
Blog: How Long Does it Take To Buy and Implement an HRIS
Costs
Paycor charges companies on a subscription basis and is often one of the more cost-effective solutions on the market. Paycor's solution can cost anywhere from $19-24 PEPM, depending on the scope and modules included
In addition to the software fees, implementing Paycor will require a one-time implementation fee. Paycor will charge ~ 10-20% of the annual software fees for their implementation fees (i.e., $10-20K implementation fee on a $100K annual purchase)
Blog: How to Negotiate an HRIS Agreement
Blog: How Much Does Paycor Cost?
Strengths
- Paycor takes a best-in-class approach to growing their product and has acquired two market leaders in Newton (ATS) and 7Geese (performance & engagement)
- Despite being a full-featured HRIS, Paycor is one of the lowest cost options on the market
- Paycor's payroll module is one of their strongest tools and they provide comprehensive tax support services behind it
- Paycor has made a large investment in support and implementation human resources in the last six months, building out a new service office in Colorado
- Paycor's scheduling tools have developed significantly over the last few years
Weaknesses
- Due to their growth by acquisition approach and the multiple databases in the system, Paycor's reporting tools can be lacking in real-time data
- Although Paycor is investing in service, they faced a series of layoffs during COVID and haven't fully re-staffed their support teams
- Paycor's user interface is straightforward and navigable but could use a more modern update
- Paycor's typical customer is in the 50-350 employee space and their can be scalability concerns for companies with complex needs and reporting structures
Integration Capabilities
Paycor integrates with most accounting systems and benefit carriers and provides those integrations during implementation. They also have experience working with most well-known players in those segments. Paycor can also build custom integrations with 3rd party HR tools via APIs but doesn't have the same expertise or marketplace partners as some of their peers
Free Tool: HRIS Requirements Builder
Global Capabilities
While Paycor can serve as a global system-of-record enabling international employees to onboard, complete performance reviews and manage leave, the Paycor team has primarily focused on serving domestic clients. Their support teams are all in the US and global payroll would require a 3rd party
Modules Offered
- Benefits Admin
- HR / Employee Files
- Time & Attendance
- Recruiting
- Learning
- Performance
- Engagement
What's great about Paycor?
Paycor stands out as a strong option in the mid-market HRIS space, offering several notable features and advantages. Here are some key highlights:
- Talent Management Tools: One of Paycor's standout strengths is its talent management tools, which have been enhanced through acquiring market-leading ATS (Applicant Tracking System) and performance tools. This integration allows Paycor to provide comprehensive solutions for managing the entire talent lifecycle. Their ATS competes well with standalone point solutions and offers advanced features such as AI sourcing, recruiting dashboards, and custom workflows. This enables efficient and streamlined recruitment processes, saving time and effort for HR teams.
- Robust Performance Tools: Paycor's performance tools are another area where they excel. With features like goal tracking, pulse surveys, career planning, and more, Paycor empowers organizations to establish and monitor employee performance, foster continuous improvement, and drive engagement. These tools facilitate goal setting, feedback collection, and performance evaluations, providing a solid foundation for effective performance management.
- Strong Scheduling & Timekeeping Functionality: Paycor has invested in developing intense scheduling and timekeeping functionality, making it an excellent choice for industries with hourly workforces. Whether it's healthcare, retail, manufacturing, restaurants, or nonprofits, Paycor's scheduling tools enable efficient human capital management, employee scheduling, and time tracking. This capability proves invaluable in optimizing workforce utilization and managing labor costs.
- Industry Focus: Paycor has identified key industries where they have focused their efforts, catering to their unique HR needs. By understanding the specific requirements and challenges faced by industries such as healthcare, retail, manufacturing, restaurants, and nonprofits, Paycor can offer tailored solutions that address sector-specific concerns. This industry focus allows organizations in these sectors to benefit from HRIS tools designed to meet their specific needs and compliance requirements.
- Implementation Flexibility: Paycor provides flexibility in the implementation process by offering incentives to clients who hire a third-party implementation firm. They may waive or significantly discount implementation fees, making it easier for organizations to engage external consultants. This flexibility enables companies to leverage specialized expertise and ensures a smoother implementation process, leading to a quicker and more effective adoption of the HRIS platform.
Things to Consider:
While Paycor offers several advantages, there are some areas where potential users should exercise caution. It's essential to be aware of the following factors:
- Reporting Limitations: Due to Paycor's growth through acquisitions and multiple databases within their system, there can be limitations in the real-time data availability of their reporting tools. This can affect the ability to generate up-to-the-minute insights and analytics, which may be crucial for making timely and informed business decisions. Evaluating whether the reporting capabilities meet your organization's specific needs is essential.
- Support and Implementation: As is often the case with large, national payroll vendors, the quality of support provided by Paycor can vary. Some users may experience inconsistent support experiences, and smaller customers may not have access to dedicated implementation project managers. This could potentially impact the onboarding and ongoing support process. It's advisable to consider the level of support and assistance that your organization may require, especially if you have limited internal resources for system implementation and maintenance.
- User Interface: While Paycor's mobile user interface is generally praised for its simplicity and user-friendliness, the desktop experience could benefit from a more modern update. The user interface is functional but may not offer the same level of visual appeal or contemporary design as some other HRIS platforms. If having a modern and visually appealing interface is important to your organization, it's worth evaluating the user experience and interface aesthetics during the decision-making process.
- Global Capabilities: Paycor primarily focuses on serving domestic clients and may not be ideal for global companies or those with significant international operations. Their support teams are US-based and do not have notable integrations with global payroll solutions. Suppose your organization has complex global HR and payroll processing requirements. In that case, it's essential to consider whether Paycor can effectively support your international needs or if you may require a different HRIS solution with more robust global capabilities.
- Scalability Concerns: While Paycor is well-suited for organizations in the 50-350 employee range, scalability may become a concern for companies with complex needs and reporting structures. As a mid-market HRIS, Paycor may have limitations in terms of custom workflow tools and rules engines, which could hinder the ability to adapt and grow alongside your organization's evolving HR requirements. Assessing the scalability of the system and its suitability for your long-term needs is essential.
By being aware of these considerations, organizations can make a more informed decision about whether Paycor aligns with their specific HRIS requirements, ensuring that potential limitations are considered during the evaluation process.
Overall takeaway:
Paycor offers a comprehensive suite of HR tools that cover the entire employee lifecycle. They have strong capabilities in payroll, performance management, and recruitment due to strategic acquisitions. Their standout feature is the seamless integration of their Applicant Tracking System (ATS) within their Human Resource Information System (HRIS). However, Paycor faces challenges with system unity, leading to inconsistent user experiences and delays in real-time data for reporting. Despite occasional service issues, they provide discounted implementations to help businesses hire experts for smoother transitions.
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