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Paylocity
Overview
Paylocity is a full suite HRIS system that can serve as a one-stop-shop for companies, covering everything from payroll, benefits and HR to recruiting, onboarding, performance and learning. The system is designed for mid-market companies and gets above average reviews for ease of use. Paylocity is strong in integrations and can support companies with global workforces too.
Learn More: Download a vendor report comparing Paylocity and their competitors
Market Segment
Paylocity 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 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
Paylocity charges employees on a per employee per month (PEPM) basis. A Paylocity subscription can cost anywhere from $12-20 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)
Blog: How to Negotiate an HRIS Agreement
Strengths
- 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
Weaknesses
- 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
Integration Capabilities
Paylocity is above average in terms of integration capabilities compared to their peers. Paylocity has open APIs, which allows companies to build custom integrations. Paylocity also maintains a robust marketplace of integration partners which can be turned on at no cost to companies.
Free Tool: HRIS Requirements Builder
Global Capabilities
Paylocity can serve as a global HRIS system, meaning employees all across the world can login to the system, store employee files and participate in performance reviews, onboarding and engagement surveys. Paylocity also acquired a global payroll provider in 2021 and can use that technology to streamline global payroll efforts. Paylocity and the global payroll solution exist in separate platforms.
Modules Offered
- Payroll
- Benefits Admin
- HR / Employee Files
- Time & Attendance
- Onboarding
- Recruiting
- Performance
- Compensation
- Engagement
- Learning
Want more info on Paylocity? Talk to an advisor about firsthand Paylocity experience
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