Vendor Analysis
published on Sep 03, 2025
Report Overview:
This vendor assessment analyzes Paylocity's offerings and capabilities in HCM Technology & GenAI.
Who is this Report for:
NelsonHall’s HCM Technology profile on Paylocity is a comprehensive assessment of Paylocity’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of HCM Technology and identifying vendor suitability for HCM Technology RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the HCM Technology sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Paylocity’s HCM Technology offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, challenges, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base, including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization, including the location of delivery centers.
Key Findings & Highlights:
Paylocity, a U.S.-based cloud-based provider of cloud-based HR, payroll, and spend management software solutions, was founded in 1997 as Ameripay Payroll Ltd. The business operates on a SaaS model, offering enterprise-focused solutions that automate and streamline HR functions. It was founded in 1997 as Ameripay Payroll Ltd and renamed to Paylocity in 2005. Solutions and services offered by Paylocity include:
- Human Resources (Core HR)
- Payroll, including tax and garnishment services
- Time & Labor
- Talent
- Benefits Administration
- Employee Experience
- Expense Management
- Spend Management
- IT Management (Identity management, hardware provisioning).
Paylocity’s recent strategic acquisitions include:
- October 2024: Airbase - financial software aimed at expanding capabilities in spend and financial management for companies with between 100 and 5k employees. The acquisition of Airbase is estimated to represent ~1% of total revenue
- 2023: TraceHQ.com - a headcount planning and forecasting software; added seven employees
- 2022: Cloudsnap, Inc. - low-code solution for integrating disparate business applications to accelerate development of third-party integrations. The company's integration automation platform facilitated the development and deployment of API integrations, allowing clients to automate data flows across systems such as HR and financial applications
- 2021: Blue Marble (Payroll) - the acquisition brought ~75 employees and ~450 customers, acquired to expand its international payroll offering to support ~100 countries.
Paylocity’s traditional customer targets are mid- and small-market businesses with between 10 and 5k customer employees. The organization currently has ~6.7k employees and ~42k customers utilizing its platform.