Finding the right payroll and HR software is crucial, yet most solutions seem complex and expensive.
Paycom strikes an optimal balance with an intuitive, user-centric approach covering payroll, HR, and talent management in one platform.
In this review, we'll explore Paycom's key features, implementation process, pricing, and more to see if it's the right fit for your business.
Introduction to Paycom
Paycom is a leading provider of cloud-based human capital management (HCM) software focused on payroll, human resources, talent management, and time and labor management. Founded in 1998 and headquartered in Oklahoma City, Oklahoma, Paycom aims to help organizations streamline HR and payroll processes in a user-friendly platform.
Paycom Company Background
Paycom was founded in 1998 by CEO Chad Richison in Oklahoma City as one of the first companies to provide payroll and HR solutions via the cloud. Instead of installing software, Paycom allowed companies to access its platform online to manage essential HR tasks. This innovative approach enabled Paycom to grow rapidly over the years.
Today, Paycom employs over 4,300 people and serves over 23,000 clients across the United States. The company went public in 2014 and now reports nearly $1 billion in annual revenues. Paycom continues to focus exclusively on HCM technology with the goal of delivering an intuitive, unified solution covering the key aspects of managing today's workforce.
Main Products and Services
Paycom offers the following main products and services:
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Payroll - Paycom’s payroll software automates paycheck calculations, direct deposits, tax filings, and more. It also includes employee self-service portals.
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Human Resources - The Paycom HCM platform centralizes HR data and streamlines processes like applicant tracking, onboarding, performance management, and core HR workflows.
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Talent Management - Paycom provides talent management tools to support hiring, onboarding, performance reviews, goal tracking, and internal mobility.
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Time & Labor Management - Paycom offers robust time tracking with schedules, timesheets, overtime calculations, labor allocation, and absence management.
Key Benefits
Paycom focuses on ease of use with an intuitive single database platform accessible from any device. Key benefits include:
- Unified HR, payroll, talent and time management
- Employee/manager self-service portals
- Automated workflows and notifications
- Custom reporting and analytics
- Robust mobile functionality
- Award-winning customer support
By centralizing data and processes, Paycom aims to save clients time and provide the insights needed to manage the modern workforce effectively.
Core Payroll Features and Capabilities
Payment Flexibility
Paycom offers multiple payment options to provide employees flexibility in receiving their pay, including:
- Direct deposit: Employees can have their net pay deposited directly into their bank account(s). This is the most commonly used method.
- Pay cards: For employees without bank accounts, pay can be loaded onto prepaid debit cards.
- Paper checks: Traditional paper paychecks can still be issued if needed.
- On-demand pay: Employees can access earned wages before the next scheduled payday.
By supporting various payment methods, Paycom adapts to the needs of diverse workforces.
Tax Filing and Compliance
Paycom handles all aspects of payroll tax calculations, payments, and filings to remain compliant at the federal, state, and local levels. This includes:
- Automatic calculation of income, Social Security, Medicare, and other taxes
- Tax payments to appropriate agencies on behalf of the employer
- Tax form preparation (W-2s, 1099s)
- Filing of quarterly and annual returns
By keeping up with the latest payroll regulations, Paycom ensures employers avoid penalties for non-compliance.
Reporting and Analytics
Paycom provides real-time reporting and analytics covering:
- Payroll totals and trends over custom date ranges
- Labor cost analysis by department, location, etc.
- Employee pay history and compensation tracking
- Tax liability monitoring
- Overtime and PTO metrics
- Custom reports exportable to CSV/Excel
The robust self-service reporting empowers data-driven decision making for payroll and HR.
API and Software Integrations
Paycom offers open APIs and seamless integration with many popular software platforms, including:
- Accounting: QuickBooks, NetSuite, Sage Intacct
- HCM: BambooHR, Workday
- Timekeeping: TSheets, TimeClock Plus
This allows easy syncing of payroll data across systems for convenience and transparency. The payroll information remains up-to-date regardless of where it is accessed.
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HR and Talent Management Features
HR Workflows
Paycom offers streamlined workflows for common HR tasks like onboarding, offboarding, PTO requests, and more. This saves HR teams time on administrative tasks so they can focus on more strategic initiatives. Key features include:
- Customizable onboarding checklists to gather paperwork, assign training, and set up systems access
- Automated offboarding process to terminate access, collect equipment, export data, and conduct exit interviews
- Intuitive PTO request workflow with configurable approval chains and absence policy tracking
Applicant Tracking
Paycom provides tools to manage the entire recruitment process in one system. This includes:
- Online job board to internally and externally post openings with customizable application forms
- Candidate database to track applicants' progress with search, filtering, and custom fields
- Automated tasks like screening questions and skills assessments to rank and shortlist applicants
Performance Management
Paycom facilitates goal setting, regular check-ins, reviews, and continuous feedback. Managers can easily:
- Set SMART goals and tie them to company objectives
- Schedule and document one-on-one meetings with employees
- Launch multi-rater 360 reviews to gather peer feedback
- Track real-time progress and provide coaching between reviews
Employee Self-Service
The employee self-service portal empowers employees and eliminates common HR requests. Employees can conveniently:
- View pay statements, tax documents, and payroll information
- Request time off and view remaining PTO balances
- Update personal information like addresses and contact details
- Access company news, events, directories, and knowledge base
Implementation, Support and Pricing
Implementation Process
Paycom has a structured implementation process designed to get clients up and running quickly and smoothly. The typical implementation takes 4-8 weeks from contract signing to launch.
The key steps include:
- Initial discovery call to understand the client's needs, goals, processes and existing systems
- Data analysis and migration planning
- System configuration and setup based on the client's processes, org structure, etc.
- Employee training sessions and access to online learning resources
- Validation of data accuracy before go-live
- Dedicated launch support and issue resolution during the transition
Throughout the process, clients have an implementation manager as a single point of contact to drive the project and timeline.
Ongoing Support
After launch, Paycom provides several support channels for employees and administrators:
- 24/7 access to Paycom's online knowledge base with searchable articles, video tutorials and guides
- Live chat support during business hours with quick responses from product experts
- Toll-free phone line for urgent inquiries or complex issues
- Optional dedicated account manager for strategic guidance and best practices
They also offer regular product training webinars and an online user community to connect with other customers.
Pricing and Contracts
Paycom uses a price per employee per month model based on services selected. All core HCM features start at around $100/month per employee. Additional modules like time tracking, talent management, etc. incur added fees.
They offer month-to-month contracts as well as 1, 2 and 3 year terms, with discounts for longer commitments. Implementation and training costs may apply upfront as well. Custom enterprise quotes are available for larger organizations.
Overall, Paycom aims to provide comprehensive, user-friendly HCM software paired with high-touch support at a competitive price point for midsized businesses.
Conclusion and Recommendation
Pros and Cons
Paycom offers several key advantages for businesses looking to streamline payroll and HR:
- User-friendly interface and intuitive tools simplify complex processes
- Robust reporting provides actionable insights into workforce metrics
- Integrations with other systems reduce manual data entry
- Mobile access empowers employees and managers with self-service
Potential drawbacks to consider:
- Implementation may require some initial setup time investment
- Advanced customization options cost extra fees
- Lacks some niche HR functionalities found in larger suites
Best-Fit Businesses
Paycom is likely to deliver the greatest return on investment for:
- Small to mid-sized companies with under 1,000 employees
- Businesses seeking an all-in-one solution to consolidate systems
- Companies wanting self-service and mobile access for distributed workforces
- Organizations that value real-time analytics and workforce visibility
The platform's focus on user experience makes it a strong choice for growing companies aiming to modernize cumbersome payroll and HR processes.
