Paylocity Review: Payroll and HR for Today

Most organizations would agree that managing payroll and HR can be complex and time-consuming.

Well, Paylocity offers an intuitive, unified platform to automate and simplify these critical business processes. Their solution provides real-time data and analytics, robust compliance tools, and easy mobile access.

In this review, we'll take a close look at Paylocity's capabilities, including key features like payroll, benefits administration, talent management, and HR management. We'll also compare pricing, discuss implementation and support, and offer recommendations on which types of businesses can benefit most from using Paylocity.

Introduction to Paylocity

Paylocity is a leading provider of cloud-based payroll and human capital management (HCM) software solutions for medium-sized organizations. Founded in 1997, Paylocity has steadily grown over the past two decades to serve over 20,000 clients across the US.

Paylocity Company Background

• Founded in 1997 and headquartered in Schaumburg, Illinois
• Went public in 2014. Now a publicly traded company on the NASDAQ exchange
• Serves over 20,000 clients in manufacturing, healthcare, retail, education, professional services industries
• Processes payroll for over 2 million employees every year

Main Products and Services

• Paylocity Web Pay - Flagship payroll processing software with real-time analytics and robust reporting
• Paylocity HR - Comprehensive HR system for core HR, talent management, and workforce management
• Benefits Administration - Integrated platform to manage and administer employee benefits programs

Target Customers

The primary targets for Paylocity products are:

• Medium-sized organizations with 100-1000+ employees
• Companies seeking modern, cloud-based payroll and HCM platforms
• Organizations that value streamlined processes, self-service, and mobile access
• Businesses needing real-time analytics and reporting across HR and payroll

Key Benefits and Capabilities

Paylocity offers a modern, intuitive platform that unifies HR, payroll, and other capabilities into one system. This consolidation simplifies workflows and provides a more streamlined user experience.

Intuitive and Unified Platform

Paylocity designed its platform to be user-friendly and easy to navigate. Core modules like payroll, time and attendance, and benefits administration are accessed through the same interface. This unified system eliminates the need to toggle between different applications. The dashboard provides an overview of key HR and payroll metrics in one centralized location.

Automation and Compliance

Automation is built into many Paylocity processes, saving time and reducing the chance of errors. Workflows like new hire onboarding and employee offboarding can be configured to follow predefined steps automatically. Paylocity also stays on top of changing regulations to ensure compliance needs are met in areas like ACA reporting, tax filing, and paid leave accruals.

Data and Analytics

Paylocity leverages data and analytics to provide actionable insights. Real-time reporting and customizable dashboards track KPIs across the organization. These metrics identify opportunities related to turnover, compensation planning, employee engagement and more. The analytics empower leaders to make better-informed strategic decisions.

Mobile Access

Paylocity offers mobile apps for both managers and employees. Managers can handle HR tasks like approving PTO requests while on the go. Employees have self-service access to pay stubs, timecards, schedules, and more. This mobile capabilities facilitates a remote or hybrid workforce.

Implementation and Support

Onboarding and Training

Paylocity provides comprehensive onboarding and training programs to get clients and employees up and running quickly. This includes:

• Dedicated implementation specialists to guide setup and configuration
• Customized onboarding plans tailored to the client's specific needs
• Interactive online training courses and tutorials on using the platform
• Proactive check-ins during ramp-up to address questions
• Ongoing training webinars and events to learn best practices

By investing heavily in onboarding and training, Paylocity ensures a smooth transition for companies adopting their platform.

Ongoing Support

Paylocity offers extensive ongoing support through various channels:

• Online knowledge base with searchable articles, guides, and FAQs
• 24/7 chat and phone support to quickly resolve technical issues
• Dedicated account manager for high-touch questions and needs
• Regular product updates and maintenance to proactively identify issues

Their focus is on maximizing uptime and minimizing disruptions. Support options cater to clients of all technical abilities.

Integrations and APIs

Paylocity offers open APIs and 150+ third-party integrations with solutions like:

• Applicant tracking systems for recruiting workflows
• Accounting platforms like QuickBooks for connected payroll
• Productivity tools like G Suite and Office 365
• Benefits providers, insurance carriers, retirement services

This allows businesses to connect Paylocity into their existing technology stack for greater data sharing and visibility. The Paylocity marketplace also makes it easy to browse and set up pre-built integrations.

With robust APIs, Paylocity provides flexibility to customize even deeper integrations tailored to unique business needs. Their integration capabilities enable businesses to unify all their HCM systems.

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Pricing and Contracts

Pricing Factors

Paylocity has customized pricing based on several key factors:

• Company size - Pricing tiers based on number of employees
• Modules needed - Core HR, payroll, time and attendance, etc.
• Add-ons - Additional fees for specialized services

The more modules and complex needs, the higher the price. Large enterprises pay more than SMBs.

Sample Pricing

Here are some sample monthly prices:

• 10 employees - $100
• 50 employees - $250
• 100 employees - $500
• 500 employees - $1,500
• 1,000+ employees - Contact for quote

Prices decrease per employee as company size grows due to economies of scale.

Contract Options

Paylocity offers:

• Month-to-month contracts - Cancel anytime with 30 days notice
• 1-year contracts - Small discount compared to month-to-month

No long multi-year commitments required. Short-term options available.

Competitor Comparison

vs. Gusto

Paylocity and Gusto both offer modern, cloud-based payroll and HR solutions aimed at small to medium-sized businesses. However, Paylocity has more advanced features and customization options that can scale to support larger, more complex organizations.

Some key differences between Paylocity and Gusto include:

• Integrations: Paylocity offers over 250 pre-built integrations with top HR apps compared to Gusto's limited third-party integrations. This makes it easier to connect Paylocity to existing business software.
• Analytics & Reporting: Paylocity provides robust real-time analytics and custom reports to help businesses extract insights from their workforce data. Gusto's reporting capabilities are more basic.
• Recruiting & Onboarding: Paylocity includes applicant tracking system (ATS) functionality and an onboarding portal to streamline hiring and employee onboarding. Gusto lacks native recruiting and onboarding features.
• Global Capabilities: Paylocity supports global payroll in over 150 countries. Gusto only supports US and Canadian payroll.

So while Gusto offers an affordable solution for very small businesses, Paylocity's extensive features make it a better choice as organizations grow and require more customization.

vs. Workday

Workday is designed for large, global enterprises with thousands of employees, whereas Paylocity targets small to medium-sized businesses. For larger companies, Workday offers more advanced capabilities for compensation management, core HR, global payroll, analytics, and planning.

However, Paylocity provides a more unified platform that is easier to use for SMBs compared to Workday's complex, modular system. Paylocity also has a lower total cost of ownership.

So Workday edges out Paylocity for global enterprises, but for SMBs, Paylocity delivers a complete, user-friendly HR and payroll platform that meets the needs of most growing organizations.

vs. ADP

ADP is a longstanding legacy provider with a broad portfolio of traditional payroll and HR solutions. In contrast, Paylocity offers a modern, cloud-based platform with an intuitive user interface and mobile access.

Key advantages Paylocity has over ADP include:

• Ease of Use: Paylocity provides a more user-friendly, consumer-like experience preferred by today's employees and HR teams. ADP can be cumbersome to navigate.
• Analytics: Paylocity enables robust workforce analytics, AI-driven insights, and custom reporting out-of-the-box. ADP analytics require add-ons or custom development.
• Integrations: Paylocity seamlessly connects with hundreds of leading HR apps while ADP has limited third-party integrations.
• Customer Support: Paylocity is recognized for its award-winning customer support while ADP trails in service quality.

So companies looking for an intuitive, analytics-driven HR platform with modern integrations will prefer Paylocity over ADP's legacy solutions.

Conclusion and Recommendations

Best For Growing SMBs

Paylocity provides an ideal HR and payroll solution for small and medium-sized businesses that are experiencing growth. Key benefits include:

• Unified platform for managing payroll, benefits, HR, and talent needs
• Scalable to support 10-1000+ employees
• Intuitive interface and mobile access
• Integrations with popular SMB software

As an SMB expands headcount, Paylocity makes it easy to handle added HR complexities without needing to implement multiple systems. The unified platform is cost-effective and doesn't require extensive IT resources.

Consider For Enterprises

While Paylocity focuses primarily on the SMB market, larger enterprises may still find value in evaluating the platform, especially if:

• You operate multiple small regional offices or franchises
• You need an easy-to-use system employees can adopt quickly
• You want tools specifically designed for modern HR needs

If centralized HR control and advanced enterprise functionality is a priority, then solutions like SAP or Workday may be preferable. But Paylocity warrants consideration for its specialization in streamlining payroll and HR for SMBs.

Next Steps

If Paylocity seems like a good fit, the next steps are:

• Use the product selection tool to explore modules for your needs
• Request demos and pricing specific to your payroll size and functionality requirements
• Sign up for a free trial to evaluate the platform hands-on with your own team

Their customer service team can also advise on the best plan and customizations for your current and future needs as a growing business. Reach out today to see how Paylocity can help improve your payroll and HR operations.

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