Paylocity Strengths, Domain Expertise, and Key Differentiators
Paylocity specializes in cloud-based payroll and HR applications for midmarket companies helping them manage their workforce effectively through easy-to-use features and simplified business processes.
The vendor provides solutions that offer comprehensive cloud-based platform optimized to meet the payroll and HCM needs of medium-sized organizations, modern, intuitive user experience, and self-service capabilities that significantly increase employee engagement, flexible and configurable platform that aligns with business processes and centralizes payroll and HCM data, software as a service, or SaaS, delivery model that reduces total cost of ownership for our clients and seamless data integration with our extensive partner ecosystem that saves time and expense and reduces the risk of errors.
Paylocity Recent Developments
In July 2020, Paylocity announced its new COVID-19 Return to Work offerings to help businesses and employees navigate the unprecedented complexity of re-opening and re-energizing the workforce. New tools within the Paylocity platform help clients implement a seamless recruiting and onboarding process as they seek new candidates or bring back furloughed employees. With the Recruiting and Onboarding modules, organizations can launch virtual rehire events by automatically changing the status of furloughed employees and inviting past employees to submit applications for rehire. Clients can also easily invite candidates to apply for specific jobs, aiding in expanding talent pools. To expedite the onboarding process for rehires, Paylocity rolled out geolocation enhancements to immediately validate state and local taxes based on employees' home and work addresses.
Paylocity Mergers and Acquisitions (M&A) Activities
In September 2021, Paylocity acquired Blue Marble Payroll, a longtime partner providing international payroll solutions. Blue Marble is a leading global payroll provider for companies seeking more control and convenience in international payroll processes and currently serves approximately 450 clients.
In November 2020, Paylocity acquired Samepage, an all-in-one team collaboration solution. Samepage offers digital collaboration tools including task management, file sharing, real-time document collaboration, and more. With the deal, Paylocity expands its product functionality in these areas and demonstrates a commitment to building its modern workforce suite of solutions that meet the needs of both HR teams and employees.
In April 2020, Paylocity acquired VidGrid, a video platform provider. VidGrid enables peer-to-peer video learning courses, transforming video into two-way communication. With the deal, Paylocity expands its product functionality around workplace video communication and reaffirms its commitment to stronger employee collaboration, engagement, and retention while helping clients prepare for the workplaces of the future.
In March 2018, Paylocity acquired BeneFLEX HR Resources, a privately held third-party benefits administration company in an all-cash transaction. The acquisition of BeneFLEX expands Paylocity product portfolio, allowing it to provide additional benefit administration solutions to clients, prospects, and the insurance broker community. The combination of BeneFLEX’s expertise in this growing market and Paylocity’s leading payroll and HCM platform creates a compelling value proposition for clients and broker partners.
Paylocity Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Paylocity applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Paylocity and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Paylocity, customers.
Ownership: - PCTY: Nasdaq
Number of Employees: 4150
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilites,
Paylocity Key Enterprise and Cloud Applications
Paylocity Revenues, $M:
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* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Paylocity Revenue Breakdown By Type, $M:
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Paylocity Enterprise Applications Revenues By Functional Markets, $M:
Paylocity Enterprise Applications Revenues By Verticals, $M:
Paylocity Revenues By Region, $M
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Paylocity Direct vs Indirect sales
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Paylocity Customers - Breakdown by Geo, Size, Vertical and Product
No. of Paylocity Customers: 28750
No. of Paylocity Enterprise Applications Customers: 28750
No. of Paylocity Cloud Customers: 28750
No. of Paylocity Cloud Subscribers: 3 million
Paylocity has 28,750 customers in the US, which include for-profit and non-profit organizations across industries including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and many others.
Among its customers are Lindamood-Bell Learning Processes, Gerding Edlen, LeSaint Logistics, Uncle Julio's Corporate Office, RJN Group, Groupone, Patrick Dealer Group, Landmark Dividend, Ravinia Associates In Internal Medicine, and others.
Paylocity Market Opportunities, M&A and Geo Expansions
In August 2021, Paylocity unveiled continued momentum and adoption of its Modern Workforce Solutions that include innovative features such as Community, Premium Video, Surveys, Learning Management, and the recently launched Modern Workforce Index. Companies are leveraging these features to help elevate the employee experience in the current competitive environment, where attracting and retaining talent has become paramount. The company has also received recognition for these solutions from third-party organizations including G2 and Lighthouse Research and Advisory.
Paylocity released ACA Enhanced, a new compliance solution to help clients manage the reporting requirements of the Affordable Care Act (ACA).
In addition to its core payroll engine, Paylocity has layered on top of it an array of services like benefits administration as well as interfaces for third-party products for accounting, point of sale, bank communication, expense management, recruiting, background screening, and skills assessment in order to give customers full visibility into their financial management and human resources systems. In doing so, Paylocity is positioning itself as the business process enabler beyond the traditional confines of a payroll services provider.
In June 2018, Paylocity launched Integration Marketplace, a tool for clients to easily and quickly identify integration partners and capabilities. The addition of the marketplace further strengthens Paylocity’s longstanding commitment to providing a superior experience to clients, whether they are using the entire proprietary product suite, or integrating with their preferred point solutions.
Paylocity Risks and Challenges
Paylocity is among a new crop of Cloud-based payroll service providers that have leapfrogged incumbents such as ADP and Ceridian by emphasizing its flexible, scalable, and easy-to-use software templates.
The next phase of growth will depend on Paylocity’s ability to redefine the payroll market with more customization capabilities as well as multi-country support through internal development efforts or partner contributions.
However, Paylocity appears to be reevaluating the role of its partners including resellers. A few years ago Paylocity terminated one of its two key resellers. It's not clear whether Paylocity plans to find a substitute or decide to streamline its channel program.
Paylocity Ecosystem, Partners, Resellers and SI
With 300+ integration partners across 20 product categories, Paylocity's open architecture allows users to streamline the management of payroll and human resources data across different business platforms.
Paylocity has also developed a referral network of third-party service providers, including 401(k) advisors, benefits administrators, insurance brokers, third-party administrators, and HR consultants, that recommend its solutions and provide referrals. Paylocity's referral network has become an increasingly important component of its sales process, earning 25% of its new client revenue originated by referrals from participants in the Paylocity referral network.
In November 2021, Fidelity Investments, the country’s largest 401(k) provider, and Paylocity unveiled that seamless access to payroll capabilities is now available with the Fidelity Advantage 401(k)SM pooled employer plan (PEP). This enhancement will reduce the administrative burden on small- and mid-sized businesses offering retirement plans for their employees and help workers start saving towards their retirement goals.
In October 2019, EvoShare, a micro-savings technology company, and Paylocity partnered to fully automate the process of finding additional savings account contributions with cash-back from employees’ everyday spending, with unprecedented ease-of-use and scalability for HR and Payroll teams. The same month in 2019, Compeat, a provider of innovative restaurant accounting, back office, workforce, and intelligence management software, partnered with Paylocity.
Paylocity Cloud Infrastructure Insights
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- Paylocity Public Cloud and Infrastructure (IaaS)
- Paylocity Platform (PaaS)
- Paylocity Application Delivery
- Paylocity Private Cloud and Data Centers
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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