Best Payroll And HR Software (2024)
The best payroll and HR software, hand-picked for enterprises and SMBs, along with benefits, pitfalls, FAQs, and more.
Best Payroll and HR Software
Arguably, the most complete form of HR software is a platform that can handle every Human Resources process, including, of course, payroll. Many companies excel at making a good mixture of both core HR and payroll tools and packing them together as a seamless product, so it's hard to pick the one just for you. Below, we'll delve into how to make the best choice for your organization. You can also get tailored advice arranging a free call with one of our HR tech experts.
Be it small businesses or large corporations, the one thing that’s a must for every company is that its employees are getting compensated accurately and on time. A good payroll software takes care of this. But what’s even better is a management solution that not only helps a company with payroll processing but also acts as an all-in-one HR system that lets you streamline core HCM tasks such as onboarding, time tracking, talent management, performance management, among others.
We’ve put in hours of research to come up with a list of the best payroll processing and HRMS vendors to help you choose an HR and Payroll tool that’s best suited for your company. This list has been arrived at by judging these HR solutions on various metrics including but not limited to their user interface, functionality, pricing, and customers. To help you make a calculated decision, we’ve also included the pitfalls, benefits, ROI, implementation, and more.
To bring you the best payroll and HR software options, we conducted extensive research and leveraged our expertise in the industry. We've been following and demoing numerous software solutions over the years, so we’ve seen hundreds of payroll and HR tools. This guide showcases several that combine the two categories, HR and Payroll.
With the help of our community of HR experts, who often share their experiences with each tool in various organizational settings, we were able to select the very best. Three of the most important criteria we evaluated these tools on are: workflow automation, payroll processing, and core HR features.
- Workflow Automation: We prioritized solutions that offer robust automation capabilities, enabling HR professionals to save time on repetitive tasks. The selected software options provide intuitive workflows and can automate key tasks such as onboarding, employee data management, PTO calculations, leave requests, and more.
- Payroll Processing: We filtered for payroll and HR software that excels in this area, ensuring robust yet user-friendly payroll processing for businesses of all sizes. The chosen solutions offer comprehensive payroll management features, including tax calculations, direct deposit capabilities, payroll reporting, and integration with accounting systems.
- Core HR Features: These tools are great for payroll, but do they get HR right? We handpicked those offering the greatest range of core HR features to support your organization's needs. Most of these tools are fully-fledged HCM systems, enabling you to efficiently handle all aspects of employee management in one centralized platform.
To learn more about our comprehensive evaluation process and discover additional insights on selecting the best HR tech, we invite you to read our piece on how we select the best HR tech.
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Gusto
Gusto offers an affordable basic plan that is suitable for budget-conscious startups. At the same time, their premium plan is a good bet for companies that want to invest more in their employees’ skills. This is especially true in companies whose HR departments are very small.
PROS
- Gusto has an eye-catching UI and multi-device compatibility.
- Easy payroll for U.S.-based W-2 folks, domestic and international contractors.
- Supports online signatures and automated tax filing.
- Flexible payroll options for different schedules and unlimited pay runs.
- Automatic deductions streamline benefits administration.
- Streamlined hiring and onboarding process between HR and new hires.
- Integration with CorpNet and Checkr for post-offer tasks.
- Person-to-person phone support, email, and customer service resources. Licensed benefits advisors available for all plan users.
- Transparent pricing and no long-term contracts. Free account setup.
- Ability to create onboarding checklists send offer letters, and store documents online.
- The dashboard feature keeps tabs on compliance tasks
- The hiring and onboarding sequence is nicely streamlined between HR and the new hire
- Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
- Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
- Person-to-person phone support, email, and other customer service resources
- The business model is responsive to customer needs
CONS
- Limited support for international employees.
- No native accounting feature for tracking earnings and spending.
- Simple plan lacks native time tracking and online signatures, requiring third-party integrations.
- Simplistic analytics dashboard.
- Premium plan or add-ons required for federal/state compliance alerts and existing broker/health insurance integration.
- No free trial available.
- Gusto can support payments for international contractors, but not employees
- No native accounting feature to keep earning and spending under the same roof
- Analytics dashboard is simplistic
Gusto UI is both aesthetically pleasing and user-friendly. The platform doesn’t offer mobile apps (except for its Wallet app), but being browser-based means it can “play nice” on all devices.
It supports online signatures and automated tax filing, streamlining essential administrative tasks. It also offers flexible payroll options, helping businesses accommodate varied pay schedules and perform unlimited pay runs.
Another notable advantage of Gusto is that it effectively syncs payroll with deductions. This feature saves time and ensures compliance with relevant regulations. Moreover, its integration with CorpNet and Checkr enhances post-offer tasks — a plus for those seeking better employee onboarding.
Gusto strongly emphasizes customer satisfaction through responsive phone and email support, live chat, and licensed benefits advisors for users of all plans. Plus, the setup is free!
Though it can manage payments for international contractors, full support for international employees is unavailable. Additionally, the software lacks a native accounting feature for tracking earnings and spending, so users must rely on external accounting solutions.
If you’re checking out Gusto’s Simple plan, a heads up: it doesn’t have native time tracking or online signatures, so third-party integrations are needed. Advanced features like compliance alerts and integration of existing brokers are reserved for the Premium plan or offered as add-ons for the Plus plan. Simple plan users do not have the option to purchase these add-ons, which may limit their access to comprehensive compliance support and insurance integration.
American Canning, Matchless Builds, Citizen Pilates, Pain Clinic, Distant Moon.
- Simple plan: $40/month + $6/month/person
- Plus plan (limited time sale): $60/month + $9/month/person
- Premium plan: Customized options available; contact sales for pricing
- Contractor-only plan (no W-2 employees): $6/month/person
Best For
Gusto offers an affordable basic plan that is suitable for budget-conscious startups. The top-tier Premium plan is highly recommended for companies willing to invest more in their human capital, particularly for those with a single-person HR department.
We process payroll semi-monthly, so we use Gusto at least 24 times a year. Occasionally, I log in to update benefits information, such as 401k contributions. It's convenient to store employee documents digitally, eliminating the need for paper files. Gusto is set up to automatically calculate and deduct 401k contributions, including our 25% match up to the maximum. Additionally, it automatically transfers these funds directly to our provider, so I don't have to worry about making separate payments.
The interface is user-friendly. Benefits deductions are seamlessly integrated with payroll processing. I appreciate how support tickets are efficiently tracked within Gusto.
Our small business needed a cost-effective payroll solution, and Gusto provided an affordable option. We've been using it for just under a year to manage payroll for our two employees. We also needed a solution for direct 401k deductions from our payroll, which has allowed us to save on taxes with pre-tax deductions.
I am not pleased that the support team seems to be outsourced outside of the USA, which occasionally makes me question the accuracy of the information provided. Also, I wish I didn't have to use one of their partners to integrate our 401k plan.
Gusto's interface is superior to many competitors with its ease of use and straightforward setup. It intuitively understands my needs without requiring setup in multiple areas to achieve the desired functionality.
Gusto might not be ideal for larger companies. It can be challenging to manage frequent payroll changes due to the platform's complexity in this area.
Since I am relatively new to using Gusto, I am not familiar with its historical changes or updates.
Gusto is very well-suited for small businesses with fewer than 20 employees.
Companies with more than 50 employees or those with frequent payroll changes may find Gusto less accommodating.
Paycor
Paycor not only takes care of your payroll management and HCM needs but goes over and beyond by providing predictive HR analytics to help you understand your employees’ trends and behaviors.
PROS
- Paycor payroll solution and mobile app are both straightforward to use.
- Intuitive self-service employee portal.
- Offers multiple modules for small businesses and custom plans for teams with 50-1000 employees.
- Unlimited payrolls.
- Offers discounts frequently. Though not listed on their site, a free trial is available to those who contact the support team directly.
- On-demand pay is available for all plans.
- With the acquisition of the people development platform Verb, it has improved its employee learning experience.
CONS
- Undisclosed pricing.
- Customer support is reported to be slow at times.
- It is not a good fit for teams with 1000+ employees or those requiring advanced customization to meet their unique requirements.
Trusted by more than 29,000 businesses, Paycor’s HR + Payroll Software is made up of three HR management tools: A payroll system, an HR platform, and analytics. The payroll solution is laden with many incredibly useful features such as OnDemand Pay, AutoRun functionality, employee self-service, and tax compliance to name a few.
There’s also a mobile app that helps you make real-time changes at the tip of your fingers.
Similar to its payroll processing counterpart, Paycor’s HRMS tool is driven by automation and also comes with features that let you view employee records, edit employee data, optimize performance reviews, and improve internal communication.
Best For
I use Paycor daily and really appreciate how its workflows allow me to move candidates through the various stages of our hiring process, from initial screening to final offer. Moreover, Paycor's integration with our payroll system eliminated the need for manual data entry and ensured that all employee information was accurate and up-to-date. I could access employee data and manage HR operations from anywhere, at any time, through the Paycor mobile app.
The mobile feature of this system is a great convenience for managers and employees alike, as it enables them to easily access on the go. The user interface is visually appealing and easy to navigate, which makes it a pleasure to use on a daily basis. In addition, the reporting functionality is simple and intuitive, and the customer service team is highly responsive and helpful in case of any issues or questions.
Our company was struggling with the hiring process and needed a more efficient and cost-effective solution than our current system. We needed a system that would help us manage job postings, resumes, candidate communication, and applicant tracking in one place. We also wanted a solution that would integrate with other HR tools we were using, such as our payroll system. Paycor provided us with a cost-effective and comprehensive solution that helped us improve our recruitment process and streamline our HR operations. It helped us save time, reduce costs, and improve our hiring outcomes. I have used Paycor for 3+ years.
I think the ATS function was better when it was under Newton, but since it was acquired by Paycor, it has taken some time to adjust to the changes. I also wish it was capable of serving larger organizations to compete with iCIMS or Workday.
Paycor stands out from its competitors due to its user-friendly interface, customizable features, and seamless integration with other HR tools like payroll systems which is why I prefer Paycor.
When purchasing a tool like Paycor, people should consider important criteria such as the software's integration capabilities, installation process, security features, customer support, available features, and pricing. These factors can help individuals make an informed decision and choose a software solution that best fits their needs and budget.
The beauty of using this system has been that you are grandfathered in from the time you purchase the tool. Which means as they continue to update the system with innovative functions they do not charge extra.
I think it's excellent for small to mid-size organizations
Large organizations
Netchex
Netchex is a standout in the payroll category thanks to their stellar customer support, described often as prompt, courteous, and knowledgeable. It’s the rightful complement to their comprehensive, single-source solution which integrates HR, time and attendance, benefits management, and payroll processing.
PROS
- Grows with your team: With Netchex, it’s very easy to opt for a new plan and keep all your data in the same place even if you outgrow your current pricing plan. Other vendors require a switch to a new service in that kind of event.
- Dedicated support team: Netchex are note-worthy for their award-winning and often lauded customer service. It’s all US-based and provided in real-time through email, live chat, and phone calls.
- Pre-payroll reports: Allows for critical error checks before submission.
- Flexible payroll grid: Easy to make changes or correct errors on the fly.
- Versatile payment options: Includes paper checks, direct deposit, and pay cards.
- Grows with your team: With Netchex, it’s very easy to opt for a new plan and keep all your data in the same place even if you outgrow your current pricing plan. Other vendors require a switch to a new service in that kind of event.
- Dedicated support team: Netchex are note-worthy for their award-winning and often lauded customer service. It’s all US-based and provided in real-time through email, live chat, and phone calls.
- Pre-payroll reports: Allows for critical error checks before submission.
- Flexible payroll grid: Easy to make changes or correct errors on the fly.
- Versatile payment options: Includes paper checks, direct deposit, and pay cards.
CONS
- Requirement of payroll: Users must use the payroll module to access other functionalities, so it wouldn’t work as stand-alone HR software.
- No free trial: Potential users can't test the software without committing to a purchase. The demo with a sales rep is the closest thing.
- Requirement of payroll: Users must use the payroll module to access other functionalities, so it wouldn’t work as stand-alone HR software.
- No free trial: Potential users can't test the software without committing to a purchase. The demo with a sales rep is the closest thing.
Netchex is a comprehensive HR and payroll management platform tailored for small and mid-sized businesses (50-500 employees). The platform stands out with its single-source solution that combines payroll, time and attendance, benefits, HR information, and more into a single tool, thereby reducing the need for multiple spreadsheets and manual data entries. One of our favorite things about Netchex is their flexibility. For example, payroll administrators can effortlessly make adjustments and correct errors directly from the payroll grid.
We also love and hear great things about their detailed pre-payroll reports. As stated above, these can be reviewed before payroll is processed, allowing managers to spot any abnormalities, such as terminated employees receiving paychecks or overpayments. The system comes with full garnishment integration, multiple pay rate solutions, and complete federal, state, and local tax filings, making it a robust and versatile tool for any business.
Additionally, Netchex recently introduced several innovative features, such as AskHR for immediate answers to employee questions, Netchex AI for data analysis, and Community for fostering employee engagement. In our view, these enhancements demonstrate Netchex's commitment to evolving its platform based on user feedback and emerging industry needs.
Netchex is used by companies like Xpressdocs, BK Corrosion, Regal Hospitality, and The Colony ER Hospital.
Netchex follows a per-Employee-per-Month pricing model. Pricing varies according to the company's size and the specific products used. Detailed pricing information can be found on their website.
Best For
Netchex is best suited for small and mid-sized businesses in various industries, such as restaurants, hospitality, manufacturing, healthcare, professional services, and auto. As of 2024, their sweet spot is organizations with less than 500 employees, but they are perfectly capable of working with larger teams.
UKG
Easy to navigate and customizable to your business needs, UKG’s Payroll and HR Software provides you with all the HR services under one roof. Their customer support team that’s available on a payroll hotline and chat are worth mentioning.
PROS
- Super robust product, packing years of experience with HCM and Workforce Management technology
- Since they offer UKG Pro for HRMS and UKG Ready for workforce management, you could arrive at a combination of products that suits many of your HR needs from the same set of tools.
CONS
- Compared to newer tools, UKG Pro and UKG Ready tend to miss a unique selling point or a specific focus on a certain type of business. While they work great for bigger companies in all sorts of industries, very niche operations might have a hard time adapting to the tool.
- Similarly, UKG offers many solutions under one umbrella, so it's not the best fit if you're looking for only a handful of specific use cases.
UKG has a variety of HR product suites. If you’re looking for an HR software that combines transformative HR technology with robust payroll functionality, then UKG Pro is their HCM solution you should keep an eye on.
UKG Pro takes care of four key areas and those are payroll processing, talent acquisition, learning, and employee voice. One of its most coveted aspects is its intuitive navigation. You can get all your information on the very first page, with just a single click.
It also has a mobile app that your employees can use to do a variety of things such as being able to request time off or pulling old pay stubs.
Best For
UKG is used for all HRIS functions such as onboarding/offboarding, PTO requests, employee reviews, and processing company payroll. I use the system daily as part of my HR function. Whether uploading employee documents or tracking employee reviews, it is the core of our documentation and payroll needs. We also use it for other various needs, such as open enrollment management and carrier feeds to various vendors. It is also easy to use and learn.
Pro one: The system is easy to use and learn. Pro two: It can grow with your organization and accommodate a range of different employer sizes. Pro three: It has mobile functionality, allowing employees and administrators to access leave requests or review documents via a mobile app.
The organization already had PlanSource, which was owned by UKG. We expanded the use of the product since it already housed our HRIS and payroll information. It is fairly inexpensive with many add-on options, making it a good option for growth, which the company was experiencing. At that time, we had approximately 300 employees with plans to grow to 500.
Con one: UKG is fairly basic compared to other products I've used (ADP, Paychex, Workday). There are no big bells and whistles, but it gets the job done. Con two: You will have to pay a significant amount for full functionalities of the products if needed. I don't have cons other than these.
UKG offers a wide range of products, making it a good option for growing employers that don't have a lot of needs initially but will as they grow. Their backend helpdesk is also helpful because you can contact a person on many issues versus submitting a request/ticket for assistance and waiting for a response.
Consider your initial needs and your growth potential. If you have fewer than 100 employees, you can find other services that are more economical. If you plan to grow to a few hundred employees and beyond, this is a good long-term investment.
They are continually expanding their options. As previously mentioned, they have nice app capabilities. They also, like any other HRIS service, are continually adding or enhancing their offerings, such as benefits services, carrier feed setups, and reporting options.
UKG is a good fit for any private sector employer with 100 or more employees. I would not recommend it to employers smaller than this unless they will grow quickly beyond this number.
Employers with a lot of specialized needs, such as government contractors or those with special tracking needs, may find this software not as compatible as others on the market.
ADP
Easy to use, 24/7 support from payroll experts, seamless integrations, – ADP is packed with interesting features that will elevate your business like nothing else.
PROS
- Native, all-in-one technology suite for recruitment, payroll, and compliance.
- 17 RPO service centers in 14 countries and provide services in 42 different languages.
- Dedicated team of AIRS-certified recruiting professionals.
CONS
- Technology options outside ADP’s dedicated HR tools are limited.
Instead of obfuscating a first-time user with unnecessary details about their HR services, ADP asks you a few simple questions and fetches you a customized HR solution that would best suit your organizational needs.
ADP’s payroll and HR software known as RUN is easy to use, has a clean user interface, and yet contains so much depth in terms of features. From personalized payroll to AI-powered error detection features for tax compliance, ADP lets you seamlessly run payroll, track time & attendance, helps you with workforce management, and much more.
Best For
I typically use it every week. I use it to check my bi-weekly pay stub and access payroll info. We also use it to post job applications and advise HR of vacancies. Previously it was used to submit performance reviews which were done quarterly or semi-annually depending on the role (now using PATI). I would also use it to review the organizational chart for contact info when needed. I also found the quick links and HR/benefit information to be very useful and would frequently login just to find links and information about other company resources.
I really like that all the HR resources are essentially located in one place, especially with links embedded to external sites (eg. benefit provider). I also really like that I can access all my payroll info online in one place. The organizational chart feature is also really helpful for identifying the reporting structure for areas of the business I was less familiar with and help me connect with the appropriate team member on cross-functional projects.
We bought ADP to cut back on internal payroll costs, provide employees with online access to their payroll info, avoid manually mailing out paper T4's every year, consolidate HR information and links into 1 platform, streamline data entry requirements for the payroll team, help move employee calls and inquiries to the ADP team, free up internal payroll/HR time, and streamline HR recruiting and tracking request. I have been personally using it for around 2 years now I believe.
The login process always feels very cumbersome with the multiple authentication steps and 2FA. The performance review functionality was extremely tedious - there were a lot of different screens and it wasn't easy to locate reviews or edit them - it just seemed much more complicated than it needed to be and a lot of my managers struggled to complete their reviews even with instruction manuals. I also wish there was a way to inquire about any payroll discrepancies directly - employees would have to email me (with no visibility as a District Manager) and I would have to forward payroll and it always seemed to slow down the efficiency, especially when the answer was something simple.
More functionality and works as a total company website as opposed to just a payroll viewing platform. Much more visually appealing and easy to navigate than some other platforms (like some SAP ones I've seen)
How much functionality you want out of the platform - just access to paystubs or a fully integrated HR platform. Customization options - for example we could add custom fields like t-shirt size for team events and/or self-declaration options (eg. covid vaccination status)
We're still relatively new to the platform, so it's hard to say what is an ADP change or just an organizational learning, but I have seen the addition of new self-declaration fields in the employee profile. The benefits section and external links continue to expand as well. We struggled with the performance review section, but I believe this is now being worked on in the backend by our L&D team.
For a large organization looking to streamline HR / payroll operations, particularly if trying to move away from paper-based payroll/pay stubs.
Likely a smaller organization that just doesn't have the need for such a complex, integrated system
Zenefits
Seamlessly integrated across all levels, what separates Zenefits from other HR systems is that it has built-in compliance, dozens of pre-built integrations, and a fully functional mobile app for both employees and HR managers.
PROS
- It’s one of the top names in HR tech and payroll software for American small businesses.
- Their platform is one of the best-looking and easiest to figure out among the sector.
- Zenefits can grow with you. Its pricing plans allow you to pay and tweak as you go, add certain modules when you need them, or get rid of them if you don’t.
CONS
- As oriented to small businesses as the tool is, it doesn’t give you the chance to create a custom bundle of the services and/or modules you’d like to have. For instance, Zenefits does not offer a standalone ACA module. Therefore, you will need to purchase an entire HRIS plan if you want to access that offering.
- In addition, Zenefits focuses on small to mid sized companies. If you're an enterprise organization, you may want to consider another option.
- Zenefits is also rather focused on the US market at this point. So, if your team is mostly in another country and you need more of a local know-how, it might not be the best bet for certain modules like payroll and benefits.
With a slick user interface and tools that span across the entire employee lifecycle, Zenefits has everything you need to manage your people with ease. Its payroll is packed with advanced features and is built to serve every company’s unique needs.
Unlike most HR platforms, Zenefits’ payroll system automatically syncs with other HRMS tools, saving your bandwidth for more important tasks. From streamlined onboarding and easy PTO, Zenefits packs several essential HR tools into one place.
Best For
As a leader, I used this platform weekly at minimum, but there were times that I was using it almost daily. Managing benefits was the best part of it. Employees did not have to reach out to an HR representative if they had a life-changing event that required a benefits update. They were able to do this themselves in the self-service portal. The only problem was that there were times the system didn't update properly (not user error) and the employee would still need to speak with an HR member for assistance. The assistance on the site was not helpful.
The ease of use is the top pro Zenefits has to offer in regard to navigation. The reporting tools were easy to use. For a small team or small organization, you can combine many HR functions such as benefits, payroll, and PTO balances.
This is a mediocre platform at best for tracking an employee's time if you have nonexempt employees, attendance, and PTO balances. It is also a great self-service user portal for benefits information and updates that may occur outside of open enrollment. I have used Zenefits for less than a year as one of my clients switched to Rippling.
There were issues with tax distributions that needed manual attention to rectify. It is very expensive! $396 is just per person as that is the basic price. The customer service is lacking in the most absurd way possible. There is no accountability for system disruptions and emails go unanswered.
As I mentioned, our client switched to Rippling, which was 100% better. While it had all the pros that Zenefits had, it didn't have any of the cons. I believe it was also a less expensive alternative.
Invest in a better HRIS with a company that actually listens to customer complaints and strives to improve on those areas of opportunity. While this HRIS is easy to navigate, so are others that will cost less money in the end with fewer headaches.
Sadly, it hasn't, which is why I believe many companies switch to other alternatives. Zenefits should listen to the areas that multiple customers are having and gather the IT/HRIS analysts together to improve on those issues.
Small businesses like a one-person HR department may find Zenefits useful.
Large companies will hate Zenefits and find themselves fielding more troubleshooting calls rather than wishing they had invested in a better HRIS.
Namely
What makes Namely stand out from its competitors is that it’s highly customizable, easy to implement, and has unmatched customer service. Namely is also very scalable and would smoothly grow with your team.
PROS
- Navigating Namely poses minimal challenges for most users, with an intuitive and notably clean UI despite its extensive feature set.
- Users commend Namely's employee onboarding module, which employs a user-friendly wizard to facilitate swift and clear onboarding for new hires.
- In addition to its inbuilt data management, recruiting, onboarding, time off tracking, payroll, and benefits administration features, Namely offers managed payroll and benefits administration services, relieving internal teams of heavy burdens.
- The majority of users are able to navigate Namely without any issues. They find the UI to be intuitive and clean, despite the fact that the platform has lots of features.
- Namely’s employee onboarding module gets a alot of praise from users. It features an easy-to-follow wizard, which helps new hires get on quickly and be clear on what they need to do.
- Besides the platform’s built in features for data management, recruiting, onboarding, time off tracking, payroll and benefits administration, there are also managed payroll and benefits administration services you can opt for to reduce the burden on your internal teams.
CONS
- Namely predominantly caters to the U.S. market, limiting its suitability for international businesses.
- While users applaud its user-friendliness, implementing Namely can be time-consuming, with an average implementation period of 6-8 weeks, as reported by the platform.
- Lacking features for employee development like skill training, career pathing, and succession planning, Namely falls short in this area given its scope.
- Prior to adoption, verifying compatibility with your existing benefits provider is essential, as some users have reported instances of Namely encouraging them to switch providers, sometimes resulting in increased costs.
- Namely primarily operates in the U.S., which means if you’re looking for a global payroll and benefits provider, this platform isn’t for you.
- Though many praise the platform’s ease of use, it does take long to implement it. Namely’s own team says that an average implementation takes between 6-8 weeks.
- For a platform of Namely’s size, there currently aren’t any features that focus on employee development such as skill training, career pathing, succession planning etc.
- You’ll need to check beforehand if Namely can work with your existing benefits provider, if you have one. There have been a few reports (but not few enough to ignore) about Namely’s team convincing customers to change their benefits provider to providers that charged them more.
Namely aims to help you stay on top of your job and free up your time to focus on innovative people strategies. This cloud-based HR software consists of enhanced payroll services, compliance tools, benefits insurance expertise, and tools for employee engagement.
Apart from handling your core HR needs, Namely also offers pre-built integrations with an ever-growing list of partners. But what’s even more compelling is that if you don’t find an integration you need, you could build your own integration through Namely’s secure API.
Namely also has an amazing and active client community you could reach out to if you want an insight into the best practices.
Best For
We currently utilize Namely for managing payroll, which has been essential in ensuring timely and accurate compensation for our employees. Namely is used daily for onboarding new employees, streamlining the process and making it more efficient. It has also been valuable in tracking new employee benefits and was particularly useful during our company-wide open enrollment period in July. Supervisors use Namely for conducting yearly performance reviews for all employees, which has significantly reduced the need for paper-based evaluations. Additionally, Namely helps us with quarterly and annual data tracking for State and Federal reporting purposes, ensuring compliance and accuracy.
- Namely offers excellent benefits brokerage and administration, making it easy to manage employee benefits.
- The customer service provided by Namely is outstanding, with quick and helpful responses to our needs.
- The onboarding process for new employees is streamlined and efficient, reducing the time and effort required to bring new hires on board.
My organization plans to expand in the next two years, and we were looking for an HRIS software that is manageable for both supervisors and employees. We needed a system that could effectively track new employees throughout their tenure with the organization, and management agreed that we required software capable of scaling as we grow. After going through a thorough selection process with various HRIS companies, we found it challenging to choose the best fit for our organization. However, we were impressed that the team at Namely answered all of our questions and provided excellent guidance during the implementation process. We have been using Namely for about one year, and we are very satisfied with it so far.
- Uploading form templates into Namely can be challenging, requiring additional time and effort.
- The ability to add e-signatures to documents is limited, which could be improved for better functionality.
- Making edits within the platform can sometimes be difficult, causing frustration when changes are needed.
I like that Namely is good for small and mid-size companies just starting their HR Department. They don't oversell products like some other HRIS software - they give you what is needed.
When purchasing Namely, it's important to consider its functionality and whether it meets the specific needs of your organization. It is also essential to evaluate whether the pricing fits within your budget, especially if you are a new or smaller company. Namely’s capacity to grow with a company is a key advantage, making it a good option if your organization is planning on expanding in the near future.
Namely has evolved to be very user-friendly for both employees and administrators, making it easier to navigate and use on a daily basis.
Namely is particularly well-suited for small to mid-sized companies looking for a comprehensive HRIS solution that can grow with their needs.
Namely may not be the best fit for large companies with more complex HR needs, as its features are tailored more towards smaller and mid-sized organizations.
WorkDay
Trusted by the world’s leading companies, Workday runs on automation and innovation to help you save time and money. Its advanced analytics tools can benefit HR teams at even the largest companies.
PROS
- Accessible customer support from the community, live chat, and telephone.
- Compatible with 300 HR systems such as ERP/GL, CRM, HR, and PSA.
- Configurable dashboard with AI and ML-driven insights.
- Ability to maintain real-time alignment of budgets and workforce plans.
- SOC 2 Type 2 compliance.
CONS
- Undisclosed pricing.
- No free trial for its talent management software.
- Time-consuming implementation period (average 4.5 months).
- Challenge navigating for first-time users may require training.
- Issues with logging in were reported by users.
Designed to fuel your acceleration in a changing world, Workday aims to overcome the limitations of an Enterprise Resource Planning system, commonly referred to as an ERP. Workday has many products and solutions but if you’re on the lookout for a payroll and HR solution that would help you optimize the time, talent, and energy of your people, their Human Capital Management system is worth checking out. From creating customized compensation programs to augmented people analytics that give you insights from vast data sets – Workday’s HCM suite is packed with extremely powerful tools.
Best For
There are many reasons we'd use Workday, but some key work streams include: running payroll end to end, running the hire-to-retire process end to end, pulling important reports, and analyzing internal demographic data, etc. We use Workday multiple times per day, and we're currently still configuring some key features that we did not launch on 1/1/23, so we're still spending a lot of time on the tool.
Workday is powerful, you can create almost any report and any feature that you can imagine (although, you need to know how to do it). Workday is scalable, you can do a lot in bulk. Workday is integration friendly, having an internal HRIS be able to integrate with other software is key to running smooth internal business operations.
Previously, we were using Gusto and BambooHR for our Payroll and HRIS sources of record. Gusto and BambooHR would not integrate with one another, and we were continually faced with "big company problems" using a "small company tool" like Gusto. Workday promised an all-in-one, scalable, and powerful tool we could use in order to meet our many Payroll and HR needs. We've been using it since January 1st, 2023, and I can say that it's definitely allowed the company to scale some work streams.
Workday is incredibly unintuitive, I wish it was more user-friendly. Workday doesn't have a support team and the Workday Resource Center is not super useful, I wish it had a support team we could call. Workday is very expensive since they hold a large chunk of the market and since it's difficult to move HRIS systems, they're able to get away with charging a lot of money -- I wish it was less expensive.
A lot more powerful, and a lot more scalable, but way less intuitive to use.
Don't purchase Workday if your company is small (0-500-ish employees). Don't purchase Workday if you're not struggling with scale.
Workday has allowed us to spend less time processing workflows that affect the end user, allowing for more automation, which means less risk, which means fewer errors.
Mid-size to Large companies.
Small companies, or companies where the HR or finance teams are very small.
BambooHR
BambooHR comes with an interface that’s remarkably calming to the senses for a workplace tool. They’re one of the top HR products of all time. Their payroll product, while acclaimed, is only available for paying US-based employees.
PROS
- BambooHR offers flexible packaging and custom pricing, allowing you to select packages and additional modules as needed.
- Renowned for its simplicity and user-friendliness, BambooHR stands out as an easy-to-use tool.
- Flexible packaging and custom pricing is the way they roll. You can pick out one or two packages and pick other modules as add-ons based on your needs.
- Very simple and straightforward tool, easy to use.
CONS
- Payroll functionality is limited to US-based employees, restricting its global reach.
- Similarly, customer support is confined to US business hours, potentially inconveniencing international users.
- Certain modules, including time tracking, performance management, and surveys, are only accessible as add-ons, which would mean an extra investment.
- Payroll is only available for US-based employees
- Customer support is only offered during US business hours.
- Some modules like time tracking, performance management, and surveys are only available as add-ons.
BambooHR refers to itself as an “HR Software with heart” and rightly so. This all-in-one HR software takes care of the entire employee lifecycle by focusing on five key areas which are compensation, culture, people & analytics, hiring, and onboarding.
By keeping customer experience at the center of everything, BambooHR lets you access all your employee records in one place and dramatically reduces your paper usage.
From a robust payroll software that lets your employees quickly access their pay stubs or direct deposit to a highly accurate applicant tracking system that lets you find people who match your company culture, BambooHR has most that you could ask for in an HRIS and more.
Best For
Starting with talent acquisition, we use it to maintain our talent pool. Then recruiting the talent by incorporating an offer letter and contract. Once the employee is in our system, we use it for database management. We also use it for their performance evaluation and record the training. In the end, we also use its features of onboarding, offboarding, and employee survey as well.
I like it for its smooth performance evaluation process. It's one of my favorite features. Second is its onboarding feature and hires packet that let the new employee feel welcomed. Last but not least, is its ATS system which helps us keep a track of our talent pool.
My organization has been using it for 2 years. This is an amazing tool for employee database management. Along with that, it offers an employee satisfaction survey which can help improve things along the way. Its performance module has made life way easier with a simple few steps process for performance evaluation. Lastly, its hiring module is easy to use and generates results.
It does not provide integration with LinkedIn which adds to the cost of LinkedIn job wrapping. Its customization option is very limited and its API keys are also limited to very few options.
For a startup, It provides all the necessary options that will help the organization alleviate its HRIS system. It is not that costly compared to others and it is also very simple to use.
Apart from the very obvious, cost; another criterion could be the size of the organization. The needs of the organization are also very important in terms of what they want to achieve from an HRIS.
They have introduced new modules like performance, moreover, they are always doing webinars to make the best use of their tool. Their customer support is always very helpful.
Small and Medium Enterprises.
MNCs.
Rippling
Rippling is geared toward SMBs with its intuitive UI, automation, and 500+ integrations. Besides features like US/global payroll and self-service, the benefits administration tool lets you work with your chosen broker and select the benefits packages for your team from over 4,000 plans.
PROS
- Rippling payroll automatically updates work hours, deductions, and tax filings.
- Ability to process payroll in multiple countries and currencies.
- Can connect with 500+ apps.
- Enables users to work with their chosen broker.
- Ability to purchase modules separately or as a full suite.
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- Undisclosed pricing. No free trial.
- Phone support costs extra.
- Not the best option for teams with 2,000+ employees.
- The mobile app has limited features compared to the web browser version.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling is a competent solution for growing teams looking to handle their HR and payroll more efficiently. Though the software is quite new in the space, we appreciate how fast the platform has evolved since it debuted.
One of the standout features of Rippling is its exceptional integration capabilities. With over 500 app connections available, it surpasses most tools in the market.
Rippling offers feature-rich capabilities that simplify payroll and HR management for global teams. With its integrated platform, users can pay employees and contractors worldwide within minutes. The built-in time tracking app automatically updates work hours, deductions, and tax filings, eliminating the need for manual tasks. This allows users to focus on reviewing numbers, approving payroll, and letting the system handle the rest.
We are impressed with Rippling's benefits management tool, allowing users to collaborate with preferred brokers, select from 4,000 plans, and offer the hires a self-service portal and mobile app. However, we hope for enhancements in the mobile app's performance and features, as it can be laggy at times and lacks certain functionalities compared to the web browser version.
Rippling's pricing starts at $8 per employee per month, but obtaining an accurate quote requires a demo with a sales representative. It's important to note that the actual cost may be higher due to the software's purchase model. The Unity module is mandatory for purchasing any other modules. Additionally, if you require phone support from HR specialists, additional fees apply.
Vox, Maximum Games, Superhuman, Compass Coffee, Highnoon.
Rippling's Core HR platform starts at $8 per employee per month. Contact Sales for more details.
Best For
Rippling is most useful for SMBs, ideally with 50 to 2,000 employees. It doesn’t matter whether they are US-based, global, remote, office-based, or distributed teams.
I use Rippling daily to manage various HR functions, including recruitment, payroll, benefits administration, and employee engagement. The platform's integration capabilities allow me to streamline candidate analysis and facilitate a smoother recruitment process. Additionally, I rely on Rippling for time and attendance tracking, ensuring accurate payroll processing. The learning management system helps in organizing and tracking employee training programs. Overall, Rippling's comprehensive features enable efficient handling of all HR-related tasks within a single platform.
Rippling encompasses features for every HR component, including recruitment, payroll, HRIS, benefits administration, and engagement. The platform's user-friendly interface makes it easy to navigate and use. Rippling's integration with other systems ensures seamless data flow and process automation. The comprehensive nature of Rippling's suite of products allows us to manage all HR functions within a single platform, enhancing overall efficiency.
Our organization chose Rippling to address the need for a comprehensive HR software solution that could handle multiple aspects of employee management. Prior to using Rippling, we faced challenges in integrating various HR functions such as payroll, benefits management, and time tracking into a single platform. Rippling provides a suite of products, including an applicant tracking system (ATS), full payroll and benefits management, time and attendance tracking, learning management, and professional employer organization (PEO) services. I have used Rippling for over a year and found it instrumental in streamlining our HR processes and enhancing overall efficiency.
The pricing structure lacks full transparency. Additional modules cannot be acquired independently; instead, the core Rippling Unity platform must be purchased first. Opting for the HR help desk feature, which includes phone and email support, incurs additional costs that escalate as more features are added.
I have not used other tools to know the difference between them and Rippling.
Rippling is a comprehensive HR platform designed to streamline and automate various employee management processes. Its extensive features empower users to seamlessly handle hiring, employee management, payroll, and training tasks. Beyond HR functionalities, Rippling also provides IT solutions for configuring and overseeing computer devices and application access. This platform is particularly well-suited for small to midsize companies, especially those with aspirations for international expansion.
I’m unsure of how WorkTango changed or evolved over time.
It is particularly well-suited for medium-sized businesses and large startups in need of a modern payroll platform.
Rippling is not suitable for smaller companies.
OnPay
With best-in-class integrations and built-in HR, OnPay is extremely user-friendly and has top-notch customer support. Its USP is the way it combines simplicity with a wide range of features.
PROS
- Free tax form handling for W-2 employees and 1099 contractors.
- Some HR services included within the plan at no additional cost.
- 30-day free trial available (starts after OnPay verification).
- Well-developed online help resources.
CONS
- Poor functioned employee mobile app.
- Requires payment four days before payday for direct deposit.
- Doesn’t support automatic payroll.
- Customer support sometimes hard to reach.
Fast, precise, and backed by payroll experts, OnPay is a payroll software with all the HR tools embedded in it. OnPay’s goal is to enhance the productivity of individuals and teams. This is reflected both in their simple yet intuitive user interface and extensive features such as multi-state payroll, single sign-on, employee-self service, or automated onboarding flows.
One of the best things about OnPay is that when you buy it, you get the help of trained experts every step of the way. They also provide one month of a free trial.
Best For
We use OnPay to process bi-weekly payroll for our employees and contractors. We utilize the direct deposit functionality and use it to withhold for benefits and 401(k) deductions. It automatically remits payroll taxes to the state on our behalf. We have also recently started using it to track and approve employee PTO requests.
We are a small non-profit, and they provide us with a non-profit discount. It has all the functionality we need without being overly complicated. Processing payroll is quick and easy.
We bought OnPay because it seemed to be the best fit for our organization. It has all the functionality we need to handle HR and payroll for our small group of employees. It is robust enough to meet our needs but not overly complicated like some of the larger systems. It is easy to use, yet it allows us to process multi-state payroll and manage our employees' time off. It also includes all the basic reporting that we require.
It doesn't offer much in terms of custom reporting. Much of the HR information requires navigating to individual employee records to view. You can't edit a benefit plan once it's created; you have to make a new one to implement any changes.
OnPay is really the only system of its type and size that I've used, so I can't say how it compares to competitors. It is much simpler than ADP or UKG, which I have used, but we are getting it for a fraction of the cost. The simplicity of the system actually works well for our team.
Consider the needs of your business and team. OnPay is a fairly basic HR and payroll system. It covers all the essentials, but if you need extensive reporting or numerous integrations with other systems, you might want to explore a higher-tier HR/payroll solution. Additionally, consider cost. Even without the non-profit discount, it's a very economical solution compared to some of the larger providers.
I haven't noticed any significant changes since we started using OnPay, but as I mentioned, it already meets our needs.
I believe OnPay is great for smaller companies that don't need extensive features in their HR and payroll system.
I think a large organization with complex reporting needs would struggle to get everything they require from OnPay.
Paylocity
Paylocity streamlines payroll and HR processes with user-friendly tools, automation, compliance support, and more. Its comprehensive features, accessible platform, and expert resources make it a standout choice for managing your workforce efficiently and effectively.
PROS
- Paylocity offers a feature-rich platform that simplifies the management of payroll, HR, benefits, and other related tasks.
- It features a user-friendly interface and offers extensive online documentation to guide users through the various features and functionalities.
- There’s a mobile app that both employees and managers can access to perform several processes on-the-go.
- Paylocity’s customer support is highly rated for always being available to answer questions.
- Global payroll support for 100+ countries.
- Provides free and unlimited training modules on the website.
- Paylocity’s mobile app has a good UI and functionality
- The tool is easy to use for both employees and employers.
- Has 350+ pre-built integrations.
CONS
- Pricing information is not publicly available, and there isn’t a free trial or a free plan at this time.
- Paylocity's comprehensive feature set can create a learning curve for users.
- The report customization options in Paylocity could be enhanced.
- Undisclosed pricing.
- It doesn’t have a free trial or free plan.
- Support is available in English only.
- It isn’t the best solution for remote teams looking for a tool to manage payroll and benefits for their contractors.
Paylocity offers a comprehensive and user-friendly platform with features for payroll, people, benefits, time off, and compliance management. We love how easy and quick it is to process payroll, thanks to Paylocity’s intuitive three-step navigation flow: you enter the necessary payroll info, review and hit Submit. Paylocity also minimizes manual data entry by automatically transferring information from Time & Labor, flagging employees who need prorated or retro pay, and showing the calculations for your review.
To ensure payroll accuracy, you can make use of Paylocity’s Payroll Readiness Dashboard that gives you a comprehensive overview of your critical payroll tasks well ahead of your processing day. The system also features over 40 configurable pre-submit audits that flag irregular occurrences, such as an employee receiving double their typical pay.
Beyond payroll management, Paylocity provides a solid HRIS that helps you stay on top of several employee-related processes. For starters, it excels at data management and task automation across multiple users and workspaces. Whether it's confirming employee addresses, collecting certification proofs, or managing employee onboarding, Paylocity simplifies these processes through automation and centralization.
Accessibility is another strong point of Paylocity. Employees can securely access their payroll and HR data from anywhere, on any device. They can retrieve important information such as offer letters, paystubs, tax forms, benefits info, and make changes to their personal information. Managers and HR professionals have full visibility into employee data, enabling them to manage positions, assign skills and certifications, predict vacancies, and manage budget changes effectively,
Paylocity also prioritizes compliance, offering a user-friendly dashboard with swift access to work authorizations, EEO, and FLSA compliance data, as well as industry news. For additional support, Paylocity's HR Edge service provides expert resources, including an account manager, to assist in minimizing risk and implementing optimal practices. Furthermore, Paylocity's reporting and analytics capabilities provide deeper insights into the workforce through real-time, visually presented data. This data enables the monitoring of key metrics, recognition of patterns, enhancement of HR strategies, and the advancement of business goals.
Paylocity’s solutions are used by over 35k organizations including CRP Industries, Wagstaff, and Powerhouse.
Paylocity’s pricing isn’t disclosed upfront. We recommend scheduling a demo with their Sales team to get a breakdown of all associated costs.
Best For
Paylocity's solutions are designed for businesses of all sizes across diverse industries, with a primary emphasis on medium and large enterprises. These companies possess the necessary resources and infrastructure to fully utilize the platform's functionalities, allowing them to effectively maximize its benefits.
We use Paylocity for benefits, payroll, applicant tracking, recruiting, and reporting. The reporting tool is very robust. I can pull reports on everything from headcount to new hires and terminations. I can also rely on BSwift reporting to create and reconcile invoices for benefits. It is useful for COBRA administration as well. The platform integrates with most of my vendors, including our 401(k) plan.
It is a user-friendly platform, allowing ease in self-service for employees. The implementation was easy, with lots of assistance provided from the vendor. Integration with vendor platforms via file feeds is robust.
I have used Paylocity for 2 years. The implementation was fast and went smoothly. There were some issues initially on the benefits side when setting up our many insurance plans, but they use BSwift, which is a great tool, and ultimately, we were able to go live. Our payroll team was very dissatisfied with our existing vendor, Paycom. Our benefits team also wanted expanded reporting capabilities. Additionally, our existing platform did not integrate with our timekeeping system, Kronos.
They have frequent turnover in dedicated account representatives on the benefits side. We had to purchase special time clocks to capture our employees' time in Kronos. There were some issues setting up tricky benefit plans that the system was unable to accommodate.
I prefer this platform over ADP, Paycom, and UKG. It is much more user-friendly for employees and better scaled to the size of our business.
Employee user skill level is an important consideration. It is good for low-skilled users and has many self-help tools. It also has a great benefits tool, which is excellent for open enrollment and compliance. The reporting features are strong.
Paylocity will work with you to customize the platform wherever possible. They need to provide more frequent system upgrades and improvements based on customer feedback.
Paylocity is best for users of all skill levels, from basic to advanced. It is great for manufacturing organizations, those with complex plan designs, union contracts, and professionals.
Paylocity would not be a good fit for very small companies with fewer than 500 employees or in a work environment where computers are unavailable to employees.
Why Use a Payroll and HR Software?
If you have just started an organization or are managing a small team, you may wonder if there is any use of bringing payroll and HR software onboard. After all, you could simply keep a database of your employees’ essential information.
While it may not seem like a necessity early on, contemporary payroll and HR solutions offer so much more value than meets the eye. Here are some of the reasons why you should consider investing in payroll and HR software:
- Streamline your workflows: Instead of buying two separate softwares for your core HR tasks and payroll, you would immensely benefit from buying an all-in-one payroll and HR software in a plethora of ways. Not only would a consistent user interface give you more clarity about your work, you would also be able to easily map out an employee’s compensation and PTO based on their attendance, performance, and other such metrics – all of which would be accessible in one single place, if you choose a unified HRIS.
- Save time: The biggest advantage of using modern HR tools is that they focus on automating redundant tasks and freeing up your bandwidth for more creative and strategic thinking initiatives. A good HR and payroll system would help you save time on recurring tasks like payroll processing, time & attendance, and applicant tracking. Once you’ve got your HRMS fully implemented, it would also help you eliminate time on editing company policy and the like.
- Avail expert advice: Dealing with the nuances of payroll processing can get complicated pretty quick. Although a good payroll and HR software would have a user-friendly interface, most such softwares come with a robust support team that’s not only there with you for implementation and weekday support but also for intimating you with regulations that keep changing on a frequent basis. You could also avail the service of these payroll experts for understanding best practices and making important business decisions.
- Improve employee retention: Modern Payroll and HR solutions come with tools for employee benefits ranging from retirement benefits to health, vision, and dental insurance. This not only leads to employee retention but also helps you save money and stay compliant.
- Transparency: Makers of payroll and HR software know that they have many stakeholders. So, while HR managers have access to employee records, employees can access a portal that lets them see their own time & attendance, request time off, avail benefits, and stay up-to-date with any changes. This kind of transparency builds trust, saves time, and helps employees improve their performance.
- Stay Compliant: With the amount of research that risk mitigation requires, figuring out compliance measures by yourself can derail you from focusing on your core tasks. Payroll and HR software companies take compliance very seriously because they know that in today’s world of ever-changing regulations, no company wants the stress of lawsuits or fines looming over their heads. From unlimited access to expert HR advisors to law alerts and compliance resources, a good payroll and HR software would help you stay compliant and up-to-date with regulatory changes.
- Identify trends and patterns: Modern HR technology is equipped with analytics tools that give businesses a holistic overview of their company. From getting an insight into your diversity patterns to seeing your attrition trends in a visually digestible form, you can make use of a payroll and HR software’s analytics tool to formulate new strategies and bring change.
Some pitfalls to avoid while buying a new payroll and HR software
- Inability to integrate with other softwares: Most payroll and HR technologies pride themselves upon their ability to integrate with a plethora of third-party softwares. While the HRIS you’re interested in buying might have the ability to integrate with popular applications, it may not integrate with the system that your company uses regularly.
If you fall prey to this common pitfall, you’ll be spending your days manually entering data from one software to another, causing an unnecessary roadblock for your core HR responsibilities. - No employee self-service: One of the biggest advantages of modern HR solutions is that they come with the employee self-service option, which basically means that your employees can access, edit, and update some of their information on their own – a task that was previously reserved for the HR team.
If the payroll and HR software you’re interested in doesn’t provide this feature, you’ll have to take into consideration the amount of time and labor HR will be spending on these types of tasks. - Inadequate data security: A payroll and HR software by its nature stores a lot of sensitive information including but not limited to your employees’ names, email IDs, phone numbers, and bank account details. You’d not only want to know how the data you’re providing is being used but also how safe it is in the hands of a company you’re ready to put your trust in.
- Moving forward without getting an internal buy-in: You have to keep in mind that it’s not only the human resources department that’s going to use the HR software you’re eyeing, but also your employees. Moreover, different departments have different workflows and needs.
You wouldn’t want to end up in a situation where you bring a new technology on board, only to later hear a complaint about the lack of a desired integration or a feature imperative to a particular team’s work. - A dearth of references from existing clients: HR tech makers flaunt testimonials and client reviews like gold medals. If you don’t find one on their website, it’s definitely ok to ask for references. You can contact their customers to get feedback, or even check among your existing contacts if anyone happens to be using the tool.
Although you can give the benefit of the doubt to some companies, especially when their product is newly launched, it’s in your best interest to get references from multiple clients so you have a fairer picture of the product. - Bad user interface: Information overload affects everyone differently. Payroll and HR solutions that are not intuitive and easy to navigate will frustrate your employees, disrupt their productivity, and unnecessarily increase your HR team’s workload. Make sure you pay as much attention to a vendor’s user interface as much as its cost and features.
Of course, this can be very subjective, so be sure that a good sample of the other team mates that will be using the tool also get a say on how they find the UX / UI of the product. - Getting lured by fancy features: With the kind of interesting extra features modern HR systems come with, it’s easy to lose track of your priorities. Before contacting vendors, spend some time listing down all your essential requirements and features that you absolutely can’t do without. While it’s always nice to have additional features, make sure you’re not compromising on your must-haves.
ROI Of The Right Payroll And HR Software
You may find yourself wondering if a payroll and HR software product is worth buying, and rightly so.
These tools are certainly not free and the cost only escalates as the organization scales up. In the early stages of a company, tasks like time tracking and running payroll can be managed with the help of spreadsheets, although you have to consider that the opportunity cost is your precious time and sometimes even your peace of mind.
But when your organization grows, it’s clear as day that you’re better off outsourcing menial payroll and HR tasks to a software tool.
Consider this simple stat: The average salary of a payroll administrator in the U.S. is $50,000 per year. The average annual salary of an HR administrator is approximately the same as a payroll administrator. If you compare the amount of money you’ll spend on payroll and HR software vs. what it costs to hire a couple of administrators for such jobs, you’ll see that it’s completely worth buying a good payroll and HR software.
Besides, unquantifiable features such as accuracy, elimination of duplicate entries, or compliance risks, however easy to overlook, can make a substantial difference at the end of the day.
Payroll and HR Software Pricing
For most payroll and HR software, the pricing model is such that there is a monthly base fee plus a per employee per month fee. The latter fee is usually around a quarter of the base amount. Most HRMS vendors also provide differently priced packages that you can choose from, however. This depends on the features that you require and your organization’s size. Many vendors don’t disclose pricing upfront and require you to quote a custom price.
Pricing contracts are renewable monthly or annually, with the latter being a cost-effective choice usually. Some vendors also ask for additional charges on top of the pricing plan you choose for various purposes such as for filing W-9s and 1099s, set up, customer support, or consulting.
Make sure you’re aware of these hidden costs before you seal the deal with a vendor. That said, below is a chart of price ranges to keep in mind before you start looking for payroll and HR vendors. Do note that it’s only an average estimate and prices may vastly vary between vendors.
Key Payroll and HR Software Features
After spending countless hours in the HRMS vendor universe, we’ve found that the highest-rated payroll and HR solutions are laden with features that surpass the basic requirements of HR teams.
While some vendors go over and beyond in terms of the add-ons they provide, below is a list of features that you must look for while selecting a payroll and HR solution.
- Automated, unlimited payroll runs: It’s always good to go with a software that aims to eliminate repetitive work. You’d want to choose an HRMS that not only lets you schedule when to pay different employees but also lets you run payroll as often as you’d like, as opposed to solutions that only allow you to run payroll a limited number of times in a month.
- Tax filing and payments: Managing taxes on your own can add unnecessary risk and burden on your shoulders. Top-tier HRMS vendors withhold all your taxes each pay run and file all the necessary annual and quarterly forms on your behalf.
- Multiple pay rates: Vendors are aware that a lot of companies have employees who perform multiple tasks, for which they’re remunerated differently. This adds another level of complexity to payroll processing. It’s in your best interest to go with a vendor who provides such a feature, otherwise, you’ll be wasting your time matching different pay rates to the different number of hours worked; a task that’s best left for automation.
- Employee self-service: A feature that lets employees access their own information not only fosters a culture of transparency and trust but also frees up the HR department’s bandwidth to focus on more high-level, people-centric tasks.
- Benefits administration: Vendors who have a benefits administration platform can rid you of the hassles that come with the open enrollment process in addition to enhancing your employee experience. The biggest advantage of going with a vendor that comes with a benefits tool however is that the benefit deductions automatically flow into payroll for processing, saving you potential hours of manual work.
- Attendance & time tracking: You’d want to choose an HRMS that has an attendance tool that’s fully integrated with the payroll. This would eliminate duplicate data entry and improve the overall accuracy of the payroll system.
- Automated onboarding flows: The process of onboarding usually comes with a lot of paperwork, especially if it’s done manually. Automated onboarding flows let employees onboard themselves with features that allow them to enter their own details, e-sign documents, and self-check all the tasks.
- Employee database: An HRIS with an employee database lets you view all your employee records and information in one single place, making it easy to find any employee’s performance history, salary, position, training records, and more.
Questions To Ask On Demos
Most HR tech vendors either provide a live demo or a recorded one to their potential customers. Think of this as a simulation of what it’s going to be like after you get this product onboard. Lest you get carried away by the number of features or a beautiful user interface, it’s imperative that you prepare a list of questions beforehand that will address your core HR needs.
Although not exhaustive, below are such questions that we think HR professionals should definitely ask to get the most out of a demo:
- How does this HR software integrate with other systems that we already use?
- How do you go about transferring data from our current system to your solution?
- Do you provide training after implementing this software in our organization?
- Can you tailor your software for our specific needs?
- How long does it typically take to resolve any issues we may face?
- What are your security measures like? How do you protect our sensitive data?
- Can you give a product walkthrough from the point of view of different kinds of users?
- Will your solution help me manage contractors and other people who are not full-time employees?
- How will our pricing change as we scale?
- Is your solution cloud-based and mobile-friendly?
- Do you have a team that would help me stay up-to-date with regulatory changes that are relevant to my organization?
- Do you handle international payroll?
- How do you go about handling benefits for employees in different states or remote workers in different countries?
- Is there an in-built tool that helps the HR team communicate with employees?
- What kind of HR processes will be automated?
- What are your key features? What differentiates this solution from its competitors?
Payroll And HR Software Implementation
Depending on whether you’re buying payroll and HR software for the first time or switching to a new one, your implementation process would slightly differ.
There are also variables such as your organization size, training requirements, and the vendor you choose that would dictate your timeline and process. Thus, implementation of a new payroll and HR software could take as little as a day to a couple of weeks.
Most vendors start with an installation, which is followed by data migration (if you’re switching from another vendor), configuration, testing, employee training, and finally officially bringing the software onboard. Later, the vendor may follow up for feedback.
In most cases, the implementation team would ask you for the following information:
- Basic company information such as your EIN (employee identification number)
- Basic employee information such as their name, SSN, address, compensation, etc.
- Payroll and information about already paid taxes, if you’re switching vendors mid-year
Do note that although this is the typical process, it’s best to ask the vendor you’re interested in about their implementation process and timeline before proceeding with them.
Payroll and HR Software FAQs
What is payroll software?
In 2022, when someone says payroll software they typically mean a SaaS solution that manages, records, organizes, and automates a company’s payments to its employees. That being said, payroll software could be cloud-based or on-premise.
What is HR software?
HR software is a suite of tools that helps a company’s human resources department carry out everyday HR tasks in an efficient manner.
What is an all-in-one HRMS software?
An all-in-one HRMS software enables a company’s HR department to carry out a wide range of core HR tasks such as payroll processing, onboarding, recruiting, benefits administration, applicant tracking, and more from one centralized location.
Do companies provide both payroll and HR software together?
Yes, many vendors in the HR space provide a combined solution that takes care of payroll and core HR needs.
What does HRIS stand for?
HRIS stands for Human Resource Information System.
What does HCM stand for?
HCM stands for Human Capital Management.
What does HRMS stand for?
HRMS stands for Human Resource Management System.
What’s the difference between HRIS, HCM, and HRMS?
These terms are often used interchangeably because on the surface, there isn’t a huge difference between HRIS, HCM, and HRMS. The definition varies from vendor to vendor and even among HR professionals. While all three are all people management tools, the differences lie in their features and use cases. An HRIS takes care of your core HR needs and is limited in that sense. An HRMS has the same use case as an HRIS but goes beyond the core HR needs in terms of features, especially if it adds performance management and payroll. Strategic planning is the epicenter of an HCM while having most of the HRMS features all the same.
What are the benefits of using HR and payroll software?
There are many benefits of using an HR and payroll software, some of which are:
- Helps you save time by automating repetitive tasks
- Improves the overall employee experience
- Increases compliance
- Better organization and everything in one place
- Analytics, reporting, and key business insights
- Workforce management
What is the best payroll and HR software?
While we’ve spent a lot of time researching and coming up with this list of best payroll and HR softwares, what is best for one company might not be for some other. Hopefully, our comprehensive yet brief vendor reviews help you shortlist what would be the best payroll and HR software for your particular case.
Last advice
To wrap things up, we hope that the information on this page helped you get an overview of the best payroll and HR vendors, their features, pricing, and how to go about implementing them.
Partnering with a top payroll and HR vendor will help you save a lot of time and money, but what would truly elevate your experience is partnering with a vendor that specifically caters to your company’s needs.
Our advice to you is that instead of looking for a one-size-fits-all solution, you should narrow down your specific HR requirements and base all your demos around that. Dive right into demos with 2-3 vendors and ask them to show specific functionality. If a vendor checks the majority of your boxes, you can then evaluate them on other factors like ease of use and overall user experience.
Lastly, if you're an internationally distributed team, consider coupling this guide with our roundup of the best global payroll software.
About Us
- Our goal at SSR is to help HR and recruiting teams to find and buy the right software for their needs.
- Our site is free to use as some vendors will pay us for web traffic.
- SSR lists all companies we feel are top vendors - not just those who pay us - in our comprehensive directories full of the advice needed to make the right purchase decision for your HR team.