Paylocity Reviews - Pricing, Pros/Cons, User Reviews

Uncover Paylocity's offerings with OutSail: Ideal for mid-market, offers comprehensive HRIS suite from $22-32 PEPM, excels in payroll, integrations and user experience.

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

Human Resources and payroll management have undergone a dynamic transformation in recent years. As businesses evolve, the demand for comprehensive HRIS (Human Resources Information System) solutions increases. Paylocity emerges as a prominent player in this landscape, solidifying its position after ADP, particularly in the mid-market segment.

This article aims to provide a balanced assessment of Paylocity's strengths, areas of concern, and overall impact in the HRIS space, in alignment with OutSail’s review.

A Modern Mid-Market Leader: Paylocity

Paylocity's journey in the world of HR and payroll solutions is impressive. Starting as a small player, it has become one of the largest payroll processors in the world.  Paylocity has chosen to focus on helping medium-sized businesses with the majority of their customers having between 50 to 500 employees. This focus has allowed Paylocity to deliver a robust all-in-one solution that is also capable of being managed by a lean administrative team. For mid-sized businesses, Paylocity is known as a great choice to help with your HR and payroll needs.

Paylocity Pricing

Paylocity charges employees on a per employee per month (PEPM) basis. A Paylocity subscription can cost anywhere from $22-32 PEPM, depending on the size of your company and the modules included in your scope.

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In addition to the software fees, Paylocity will typically charge a one-time implementation fee, or setup 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). Generally, Paylocity will not offer a free trial.

Salient Features of Paylocity

Paylocity stands out for its unique and impactful features. Let's dive into the distinct aspects that set Paylocity apart from the crowd and make it a noteworthy choice for businesses seeking comprehensive HRIS solutions.

Strategic Technology Acquisitions:

Paylocity's journey toward excellence is marked by strategic acquisitions that position it for future enhancements. By bringing new technologies into its fold, Paylocity opens up exciting possibilities for users seeking cutting-edge HRIS capabilities. These acquisitions are not just about growth; they are about equipping Paylocity with the tools to provide innovative solutions that cater to the evolving needs of businesses.

User Interface Transformation:

A user-friendly interface can make a world of difference in the adoption and usability of any software. Paylocity recognizes this and has recently transformed its user interface. This revamp has garnered positive attention from users and experts alike. The result is a cleaner, more inviting experience that enhances user engagement and satisfaction. Particularly noteworthy is the onboarding module, which has received praise for its improved functionality and ease of use.

Integration Capabilities:

In modern business, seamless integration between different software systems is crucial for efficient operations. Paylocity has recognized this need and invested significantly in its integration capabilities. The integration marketplace offers a variety of pre-built integrations that enable businesses to connect Paylocity with other essential tools they use. This streamlines operations eliminates manual data entry, and boosts overall efficiency. By embracing integration, Paylocity empowers businesses to create a harmoniously unified ecosystem.

Global Payroll through Blue Marble:

Navigating the complexities of global payroll can be daunting for businesses with a worldwide presence. Paylocity has taken a proactive step in addressing this challenge by acquiring Blue Marble. This strategic move allows Paylocity to offer global payroll services through its sister company, ensuring businesses with a global workforce can manage payroll efficiently across different regions. With Blue Marble's expertise, Paylocity provides a solution simplifies global payroll management and compliance.

The synergy between Paylocity and Blue Marble not only showcases Paylocity's commitment to comprehensive solutions but also underscores its responsiveness to the diverse needs of businesses operating on a global scale.

Unlock Full HRIS Insights: Get comprehensive insights on Paylocity and others—unlock detailed reviews, pricing, pros, and cons by signing up for our HRIS Marketplace.

Concerns and Considerations

Customer Service Challenges:

Paylocity faced customer service challenges early in 2023, leading to a restructuring to enhance efficiency. While acknowledging the hurdles, the company took swift measures to improve its support, reflecting its commitment to providing a better user experience.

3rd Party Dependence:

Paylocity's reliance on 3rd party partners for certain functionalities has sometimes raised concerns. This dependency can result in a fragmented user experience, highlighting the importance of a seamless and integrated solution.

US-Centric Approach:

Despite its expansion through Blue Marble, Paylocity's system remains largely US-focused. Businesses with a global footprint may find limitations in accommodating diverse regulatory requirements and workforce needs.

Demographic Specialization:

Paylocity's sweet spot remains with smaller companies, averaging around 130-150 employees. Larger enterprises may encounter challenges with scalability and customization.

Talent Management Suite:

While Paylocity's Core HR offering is robust, its talent management features are still evolving. Businesses must assess whether these features align with their talent management strategies.

Evaluating Paylocity for Your Business

When considering Paylocity, it's essential to meticulously assess factors such as company size, complexity, and distinct needs. Understanding how Paylocity aligns with these aspects can be the key to unlocking its full potential for your organization.

Size and Complexity Matter:

One size doesn't fit all, and this adage holds when evaluating HRIS solutions. Paylocity's effectiveness can vary based on the size and complexity of your business. The importance of this evaluation cannot be overstated. Consider whether Paylocity's features, integrations, and scalability resonate with the scale and intricacies of your organization. A tailored fit ensures that your HR and payroll management align seamlessly with your operations.

Matching Offerings to Organizational Needs:

Beyond size and complexity, aligning Paylocity's offerings with your organization's requirements is paramount. Delve into whether Paylocity can cater to specific needs, especially if your business operates globally. Assess how well its capabilities can accommodate the nuances of global operations and whether its talent management functionalities align with your strategies. The harmony between Paylocity's features and your organizational needs paves the way for streamlined operations and enhanced outcomes.

Leveraging OutSail's Expertise:

Navigating the intricacies of HRIS selection and optimization can be overwhelming. This is where OutSail steps in with its deep expertise. OutSail offers invaluable guidance to businesses seeking to make informed choices. With a nuanced understanding of Paylocity's strengths, considerations, and evolving landscape, OutSail can assist in aligning your unique context with Paylocity's offerings. This partnership ensures that your HR and payroll solutions are functional and transformative.

OutSail, with its deep expertise, can assist businesses in making informed decisions that align with their unique contexts.


Paylocity is a testament to the evolving HRIS landscape, with a significant presence in the mid-market segment. Its strategic moves, though not without challenges, showcase its commitment to adapting and enhancing its offerings. As a partner in businesses' HRIS journey, OutSail remains dedicated to providing guidance and support to ensure businesses find the right HRIS solution that empowers their growth and success. Contact Us for personalized recommendations and expert assistance in navigating the HRIS landscape.

1. What is Paylocity's pricing structure?

Paylocity operates on a per employee per month (PEPM) basis, with costs ranging from $22-32 depending on company size and included modules. Additionally, there is typically a one-time implementation fee, usually around 10-20% of the annual software fees.

2. What are some standout features of Paylocity?

Paylocity excels in payroll management, user experience, and integration capabilities. It offers a modern interface, strategic technology acquisitions, and global payroll services through its sister company, Blue Marble.

3. What are some areas of concern with Paylocity?

Paylocity has faced challenges with customer service and dependency on third-party partners for certain functionalities. It primarily focuses on the US market, which may limit its suitability for businesses with global operations.

4. Is Paylocity suitable for businesses of all sizes?

Paylocity is tailored for mid-sized businesses, particularly those with around 50-500 employees. While it may not be as scalable for larger enterprises, it offers a comprehensive HRIS suite for businesses within its demographic specialization.

5. How can OutSail assist businesses in evaluating Paylocity?

OutSail provides expert guidance and personalized recommendations to businesses seeking to navigate the HRIS landscape. With a deep understanding of Paylocity's strengths, considerations, and evolving market trends, OutSail ensures businesses find the right HRIS solution to empower their growth and success.

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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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