HR Software

Paylocity Reviews - Pricing, Pros/Cons, User Reviews

January 25, 2023
Brett Ungashick
Founder

Paylocity is one of the most established vendors in the HRIS industry, providing an all-in-one suite of HR management tools to mid-sized companies. Learn more about Paylocity's average customer size, strengths, weaknesses, costs and integration capabilities.

Paylocity

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 Human Resources 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.

See Personalized HRIS Cost Comparisons
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 Human Resources 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.

HRIS Matching App: See which vendors are most aligned with your requirements
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, 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.

Blog: How to Negotiate an HRIS Agreement

Paylocity Strengths
  • Paylocity is a cost-effective solution payroll 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 is most well-known for their payroll services which enable small business owners to run payroll efficiently and eliminate spreadsheets.

Blog: How Long Does it Take To Buy and Implement an HRIS

Paylocity 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
  • Similar to other payroll providers in Paylocity's marketplace, their customer support can be very hit-or-miss, especially for companies with smaller headcounts
  • Paylocity's talent management functionality (employee engagement, performance management, learning management) was all added more recently and isn't as sophisticated as their Core HR tools

Shopping for an HRIS? Work with an HRIS advisor to streamline your shortlisting, evaluations and selection - for free!

Paylocity 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

Paylocity 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.

Blog: Best Payroll Software of 2022

Paylocity Modules Offered
  • Benefits Administration
  • HR / Employee Files
  • Payroll Processing
  • Tax Filing
  • Time & Attendance
  • Recruiting
  • Performance
  • Compensation
  • Engagement
  • Learning

Want more info on Paylocity? Talk to an advisor about firsthand Paylocity experience

Considerations When Buying New HR Software

Still trying to decide if Paylocity is the right solution for your needs? Here are some other considerations to keep in mind when researching a new payroll service, such as Paylocity:

User Interface: Is it easy to use for employees and admins?

An effective user interface is an essential part of any payroll software, but it is especially important with an cloud based payroll system. A good user interface should be simple and easy to use. It should also be customizable, so that employees can see the information they need in the format that works best for them.

Another important factor to consider is responsive design, which helps ensure that the system will work well on different screen sizes (tablets, phones, etc.) without compromising functionality.

Additionally, a good search function can make or break an HRIS system's usability—if employees can't find what they're looking for easily and quickly, they'll get frustrated and look elsewhere.

Blog: The 8 Best Modern HRIS Systems for Small Businesses

Pricing:  How do they charge their customers?

Pricing is an important consideration when choosing an HRIS. How much it costs to add new employees, the modules you need and any additional customer support are all factors that should be considered in your decision. Ask the following questions:

  • How much does it cost to add new employees? What about existing employees who have left but need to be kept on file?
  • How transparent are they about pricing information? Is there an additional renewal cost?
  • What are the costs associated with adding new modules?
  • Is this the total cost, or are there additional fees outside of the software subscription that we should add to the total costs?
  • Are there free trials, a free version, pricing for small businesses?
Reporting: Does it prepare reports and can I create my own?

Reporting is a core component of a cloud based payroll software, and you should look for one that provides the features you need. If you are primarily interested in generating reports to share with others, make sure it has the capacity to export data to MS Excel or PDF format. Keep in mind that many systems also allow reports to be shared via email and/or exported directly into third party software. Ask the following questions:

  • Does your system come with pre-built reports?
  • Can we create our own reports in the system using data from all modules?
  • Can we do workforce planning and succession planning in the system?

Blog: The 10 Best HRIS Systems for Mid-Sized Companies

Support: Do they Provide the support we need?

One of the biggest reasons why a company decides to leave their payroll software provider is because their current payroll service doesn't take great care of their customers. Finding a service provider that knows their system inside-and-out and is also willing to be responsive and supportive of their customers helps create a better experience. Here are some questions to explore:

  • What is their customer support reputation online?
  • Do we have a dedicated customer support team?
  • Are their support hours convenient for your business?
  • Can you get help via phone or email when processing payroll?
  • What is the response time to your questions?
  • Does a small business get more limited customer support?
  • Can they outsource payroll processing for us?
  • Do they provide tax filing services?
  • Can they help us stay tax compliant?

Blog: Workday Reviews - Pricing, Pros/Cons, User Reviews

One-Stop-Shop: Will you be able to get every feature you need from one provider?

If you are looking for a new HRIS Saas solution, it can be important to ensure that your next system can provide most, if not all, of the functionality you're looking for.

The more features you get from one provider, the easier it will be to implement and maintain your program as well as train employees on how to use it. Additionally, there can be cost-savings found by bundling with one provider.

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Brett Ungashick
Founder
Brett is the founder of OutSail. He spent the early part of his career selling HR software before switching sides and going to work for the people buying the software.

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