At Whirks, we like to think about shopping for a payroll provider in the same way you shop for a new house. There are non-negotiables that you need (like a kitchen) and additional features you may want (like a pool).
When you’re looking for a new payroll and HCM provider, you have the same non-negotiables you need (paying your employees) and the additional features you may want for your business (like talent acquisition).
We know that finding the right provider is stressful. Your business is growing, and suddenly paying your employees isn’t the only priority. Now, you have to worry about being compliant, offering benefits, and hiring the right people.
There are many national and independent payroll providers to choose from. What’s important is choosing the right fit for you and your team. You don’t want to end up in a house that’s too big and too expensive – or a house that’s too small with no backyard.
A Payroll and HCM partner who can support you in this process is crucial to your success. You wouldn’t buy the first house you find without even going inside – so don’t choose a payroll provider without exploring all of your options.
Once you familiarize yourself with what HCM is, why it’s essential, and what you need – it’s time to jump in and look at which provider will be the best fit for you. By the end of this article, you’ll be one step closer to choosing a supportive payroll and HCM partner who will help you and your business win.
What is Paycom?
Founded in 1998, Paycom was one of the pioneers in developing an online payroll system. They are a cloud-based software that serves over 17,000 clients in all 50 states, with local offices in several major US cities.
Paycom’s all-in-one solution is high-tech: there’s nothing it can’t do. But if you’re searching for a payroll provider, remember that you want to do less work, not more.
If the software is too complicated, you’re going to spend a lot of time trying to understand it and less time focusing on your passion and team.
Let’s review Paycom’s features, customer service, and pricing to help you determine what you need now and what you may want in the future.
Paycom’s website lists the following features:
- Talent acquisition and management
- Time management
- HR needs
They are a one-stop shop for managing your business, and their user-friendly mobile app is an added convenience for you and your employees, especially if you’re on the go.
Please keep in mind that Paycom (and other payroll providers) offer the following features and much more. This article is a summary of the basics to help you understand what you need to get started.
1. Talent Acquisition and Management
If you’re trying to hire several employees to accommodate your growing business, you need to create a smooth onboarding process that will save you time and money.
Paycom offers an Applicant Tracking System (ATS) that covers the entire hiring process, from posting to job boards to running background checks and sending offer letters electronically.
Their talent management feature empowers you to weigh the performance of your team with their compensation. Employees can also submit peer reviews, helping you target issues quickly and measure the pulse of your environment.
2. Time and Labor Management
Like most providers, Paycom offers a timekeeping feature that fully integrates with payroll. Employees can clock in and out, request time off, and view their living calendar, all from the mobile app.
It also empowers your team to swap shifts and request changes while managing the time and place an employee is working.
It’s important to know that with Paycom, every customer is a payroll customer. You can’t pick and choose different modules and integrate the 3rd party for payroll services.
Paycom offers the ability for employees to process their payroll on their own – saving you time and giving them further insight into their paychecks. They also provide traditional printed checks.
4. HR Management
Paycom allows you to offer benefits to your employees at any time and ensures you’re staying compliant. For example, you can easily submit ACA information and receive updates about potential errors.
Paycom leads the industry with the highest retention rate and generally positive customer reviews. A client relations specialist is assigned to your account and serves as your dedicated contact for any issues or problems that arise.
A dedicated contact is a standard for smaller, independent payroll providers, but it sets Paycom apart from its national competitors. However, Paycom has grown over time and experienced turnover with specialists, so you may not speak to the same person every time.
User reviews around the implementation process with Paycom are inconsistent – many report that it’s a long process, and getting adequate training on the software is frustrating.
While Paycom does not require you to sign a contract, their website offers no up-front pricing, which can make things difficult for you if you’re trying to compare them with another potential provider.
Because they are a quote-based service, you will have to book a call with a sales rep to get a customized price for you and your business. Make sure to inquire about their implementation fee (usually a percentage of your annualized price).
Paycom bases your price on the number of your employees plus a base fee. Keep in mind that they charge you every time you process payroll. For example, if you pay your employees weekly, you will be charged 4x a month.
Their pricing is not the most economical option for small or midsize businesses, especially considering the initial set-up fee you must pay upfront.
Is Paycom the right fit for my business?
Paycom is ideal for a midsize or large company trying to scale its business quickly and hire several employees. It’s an all-in-one solution that automates processes to manage hundreds of people on a team.
Their mobile app is excellent if you have several remote employees on the go or visit a job site frequently.
Even though they can service any size company, they may not be the best fit for a smaller business. If you need a simple, personalized payroll solution and dedicated help, you may want to consider starting with a smaller, independent provider.
Choose a provider that aligns with what you need.
Larger companies have several designated employees to learn the Paycom software and understand how to use it. A smaller or midsized business may delegate it to a team member who doesn’t have the time, patience, or energy.
Always return to thinking about what you need, want, and value as a business when you’re searching for a new payroll provider. Find a partner that will grow with you and mirror the same core values, helping you get one step better every day.
Unsure about who to choose? Check out our article on National vs Independent Providers to see what’s the best fit for yo