Top 6 Paylocity alternatives and competitors (in-depth comparison)

Nothing’s more frustrating than getting a brilliant idea but not finding the time to execute it. But when you’re a small business owner, you have to take care of paperwork before you can consider implementing any new schemes.If you experience that a lot, it could be why you’re considering software like Paylocity to reduce administrative tasks and free up your time for big-picture ideas that’ll move your business forward.‍

But you may have discovered that Paylocity doesn’t suit all your needs, and now you’re looking for a similar platform that ticks all your boxes. To narrow down your search, we’ve researched all the best Paylocity alternatives using independent software review platforms like G2 and Capterra. We compare them here in this article based on their essential features, pricing, and user experiences.

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What is Paylocity and what is it used for?

Cloud-based Paylocity is one of the leading human resources and payroll platforms in the United States. In addition to accounting software, it offers team, benefits, and performance management. Paylocity also has a range of employee experience tools like surveys and user videos to boost your team’s morale and enhance their well-being.

Paylocity mostly caters to medium to large businesses in the healthcare, tech, and nonprofit industries. Its benefits administration feature is ideal for low-turnover organizations like hospitals, IT firms, and charities, where staff are more likely to prioritize insurance and retirement funds over hourly rates.

Why might you choose a Paylocity alternative?

If Paylocity doesn’t work for your small business, you may have encountered one of the following issues.

Too complex

While Paylocity markets itself to companies of all sizes, it mostly caters to large organizations. That means it includes features like benefits management and compensation tools that small businesses with hourly teams won’t need. All these different features make the software more demanding to use. And because Paylocity has a steeper learning curve, it can lead users to find implementation “difficult and stressful” or even “chaotic.”

Unresponsive customer support

Complex software doesn’t have to be a deal breaker for small businesses if they get the right support. Unfortunately, Paylocity users say customer support isn’t responsive. Many report a “delay in follow up” and “many tickets outstanding for a while.” So, unless you’re especially tech-savvy, you may struggle to get Paylocity to do everything you need it to.

Unintuitive design

Paylocity users also say the software “could be simplified” and has  “extra steps than [...] required.” This can lead to a challenging user experience where the platform is “difficult to navigate” or “frustrating to find information.” So, managing Paylocity may end up canceling out much of the time you save on scheduling and payroll.

Key features to look for in a Paylocity alternative

Before we delve into our software comparison, let’s clarify the essential characteristics of top HR and payroll platforms:

• Built-in payroll: Compliantly paying your team is time-consuming and errors can be costly. You risk late paychecks, unhappy staff, and even hefty tax fines. Payroll software lets you automate the process to save time and make sure everything’s correct — even better if it’s a built-in tool rather than an integration.
• HR and compliance features: Labor laws are complicated and change constantly. To avoid penalties, you should get a platform that keeps you updated by alerting you to potential compliance issues and advising you on tricky situations like terminations and employee disputes.
• Employee management tools: Scheduling and time tracking features help you maintain optimum staffing levels, pay teams correctly, and comply with labor laws. A good HR platform lets you perform these tasks quickly and accurately with tools like automation, built-in chat apps, and employee self-service tools that keep your team engaged and accountable.
• Integrations: You probably use other apps like point of sale systems (POS) and inventory management tools. The best HR software lets you integrate with the most popular business apps so you can transfer data seamlessly across all the platforms you love using.
• Affordable pricing: Cost shouldn’t be your only consideration, but you should still choose a platform that suits your budget and allows you to add features as you grow. Even better if there’s a free plan available.

The breakdown: 6 top Paylocity alternatives

Here are the six platforms we’ll compare in the article below. We’ve chosen them based on how they match Paylocity’s strengths and compensate for its weaknesses.

• 1. Homebase: Best all-in-one solution
• 2. Paychex: Best for reporting and analytics
• 3. Gusto: Best for international payroll
• 4. BambooHR: Best for performance management
• 5. APS: Best for ACA compliance management
• 6. Namely: Best for company newsfeeds

1. Homebase: Best all-in-one solution

Homebase’s all-in-one solution lets you manage all your payroll and HR tasks in one place.[/caption] Designed with small businesses in mind, Homebase has a comprehensive set of features built specifically for hourly teams. You can create schedules, track hours, and pay hourly workers with ease. We also specialize in North American labor laws, so we can offer you guidance on your HR and compliance issues. That way, you can steer your business away from fines and stressful issues with employees.

Payroll

Homebase syncs timesheet data with payroll so you can pay staff accurately and effortlessly.[/caption] Unlike some competitors, Homebase provides scheduling, time tracking, and payroll in one place. That means data syncs seamlessly, which eliminates the need to juggle different apps or manually enter numbers into any of your systems.

HR and compliance

Homebase offers a variety of HR tools and services to help you stay on top of compliance.[/caption] The trick to staying compliant is:

• Writing clear business policies
• Catching potential issues before they happen
• Navigating complex situations as they arise

Homebase can help with all this. We offer a bespoke employee handbook service based on a 30-minute interview with you. Then, our range of compliance triggers and alerts allows you to spot problems like missed breaks and staff approaching overtime. For when the worst happens, like disciplinary action and termination, we have on-demand HR professionals to advise you.

Employee management

Homebase combines scheduling, time tracking, and communication to make team management as efficient as possible.[/caption] For businesses with hourly workers, accurate payroll and compliance management depend on effective scheduling and time tracking. For example, you need to assign and notify staff of their shifts in accordance with local labor laws. And, you have to monitor staff to check they take all their breaks. That’s why Homebase provides team management tools to let you collect availability, streamline scheduling, and track your team’s hours. Plus, our team communication app makes it easy to share updates and stay connected day-to-day.

Pros and cons

Pros

👍 Free account available

👍 Flexible pricing plan

👍 All-in-one solution

👍 “User-friendly”

👍 “Ability to cash out money for next check early”

‍Cons

👎 Prioritizes features for hourly businesses

👎 Limited features for international teams

Pricing

Homebase’s basic scheduling and timesheet features are free. Here’s a breakdown of all the plans we offer so you can make the best choice for your small business: 

• Basic. Free for one location and up to 20 employees. It has basic scheduling and time tracking, POS integrations, and email support.

• Essentials. $24.95 per month per location. Everything in Basic, plus performance tracking, advanced scheduling and time tracking tools, integrations with popular payroll apps, and access to live support.

• Plus. $55.95 per month per location. Everything in Essentials, plus hiring tools, time off controls, and departments and permissions.

• All-in-one. $99.95 per month per location. Everything in Plus, plus HR and compliance, business insights, onboarding tools, and labor cost controls.

Payroll is available as a separate add-on for $39 per month plus $6 per active user. Users can also save 20% on paid plans by committing to an annual subscription.

User ratings

As of May 2023, Homebase has a 4.2/5 rating on G2 out of 100+ reviews and a 4.6/5 rating out of 500+ reviews on Capterra.

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2. Paychex: Best for reporting and analytics

Paychex enables you to compare your wages against other businesses to establish a fair rate. Source[/caption] Holding onto your top employees can be a challenge. If another business offers a better deal or you don’t notice a problem in time, they may leave. Paychex can help by benchmarking your pay against the competition so you can check you’re offering desirable rates. Their analytics also make it easier to find trends in absences and resignations so you can spot issues faster.

Top features

• HR consultation
• Recruitment
• Payroll
• Time tracking
• Benefits management

Pros and cons

Pros

👍 ”Easy to use”

👍 ”Responsive” customer service

Cons

👎 No scheduling tool

👎 More “expensive” than some alternatives

Pricing

Paychex plans start at $39 per month plus $5 per user, but you have to contact them for a custom quote.

User ratings

As of May 2023, Paychex has a 4.2/5 rating out of 1000+ reviews on G2 and a 4.1/5 rating out of 1000+ reviews on Capterra.

3. Gusto: Best for international payroll

Gusto’s extensive payroll feature lets you transfer wages to contractors in other countries. Source[/caption] Thanks to the internet, many small businesses operate internationally. If that’s you, Gusto might be a good option. The platform lets you hire, onboard, and run payroll for employees in over 120 countries while staying compliant with local labor laws.Similar to Homebase, Gusto has a comprehensive range of features that includes time tracking, payroll, and recruitment.

Top features

• Payroll
• Time tracking
• Benefits management
• HR consultation
• Recruitment

Pros and cons

Pros

👍 Comprehensive range of tools means you have “everything in one place”

👍 “Easy to use” interface

‍Cons

‍👎 Time clock tools aren’t included in the main plan 

👎 “Delays in responses” and “no personalized service” from customer support

👎 Pricing “higher than other HR platforms”

Pricing

Gusto offers three paid plans:

• Simple for $40 per month plus $6 per employee, which has single-state payroll, hiring and onboarding features, and benefits management.

• Plus for $80 per month plus $12 per employee, which includes everything in Simple, plus multi-state payroll and leave management.

• Premium with custom pricing, which includes everything in Plus, plus performance management and compliance tools.

User ratings

As of May 2023, Gusto has a 4/5 rating out of 500+ reviews on G2 and a 4.6/5 rating out of 3500+ reviews on Capterra.

4. BambooHR: Best for performance management

BambooHR lets you record performance issues, so you don’t need to worry about building cases for misconduct. Source[/caption] Managing disciplinary action can be one of the most difficult aspects of running a small business. If you don’t have sufficient evidence, staff can file a lawsuit against you.

But you may not have the resources to easily record and track performance issues. BambooHR can do all the hard work for you by streamlining performance management and letting you keep a clear record of any issues or misconduct.Like Homebase, BambooHR also has robust leave management and employee self-service tools. Team members can log into the platform to request time off, and all managers have to do is approve it.

Top features

• Payroll
• Compliance tools
• Recruitment
• Performance management
• Time tracking

Pros and cons

Pros

👍 Robust employee self-service feature

👍 “Easy to configure automations and notifications”

Cons

👎 No scheduling tool 

👎 Payroll and time-tracking tools aren’t included in the main plan

👎 Setting permissions can be “hard to set up”

Pricing

BambooHR doesn’t advertise its prices but has two plans and the following add-ons:

• Benefits
• Payroll
• Time tracking
• Performance management

User ratings

As of May 2023, BambooHR has a 4.5/5 rating out of 1000+ reviews on G2 and a 4.6/5 rating out of 2000+ reviews on Capterra.

5. APS: Best for ACA compliance management

APS has a dedicated tool for ACA management among its compliance tools. Source[/caption] APS is one of the few platforms to provide features that help you stay compliant with the Affordable Care Act (ACA) in the United States. The software lets you assess each employee’s status, manage their documents, and track their plans. That way, you can have peace of mind knowing you’ve met all your legal obligations and looked after your staff.

Top features

• Payroll
• HR tools
• Scheduling
• Time tracking
• Benefits management
• ACA compliance management

Pros and cons

Pros

👍 “Effective customer service”

👍 “User-friendly”

Cons

👎 Reporting can be “difficult” and “confusing”

👎 “No save or confirmation button” for many features

👎 Scheduling is not available in the lowest-cost plan

Pricing

APS has three plans available, but you have to contact the sales team for a custom quote.

User ratings

As of May 2023, APS has a 4.6/5 rating out of 500+ reviews on G2 and a 4.6/5 rating out of 500+ reviews on Capterra.

6. Namely: Best for company newsfeeds

Namely’s newsfeed lets you share important updates with your team. Source[/caption] As labor laws change and your business adjusts its policies, you have to keep employees updated. So, Namely’s newsfeed could be an effective way to send out announcements with in-depth explanations. The sidebar also displays birthdays, work anniversaries, and new hires to help connect staff and boost company culture. 

Top features

• Employee newsfeed and profile
• Payroll
• HR tools
• Time tracking
• Benefits management

Pros and cons

Pros

👍 “User friendly for both administrator and employees alike”

👍 “Thorough and well-planned” implementation process

Cons

👎 “No way to view aggregate payroll information”

👎 No dedicated scheduling feature

👎 Payroll and time tracking are not included in the main plan

Pricing

Namely offers custom pricing plans with the following features available as add-ons:

• Payroll
• Benefits management
• Time tracking
• HR consultation
• Recruitment

User ratings

As of May 2023, Namely has a 4/5 rating out of 200+ reviews on G2 and a 4.2/5 rating out of 400+ reviews on Capterra.

Why Homebase is the best all-in-one solution for small businesses

When you need to simplify payroll and other tedious administrative tasks, user-friendly HR software with automation and self-service solutions is the best answer. For international teams, Gusto is a good bet. You can manage payroll in different countries and ensure you stay compliant. But for most US-based small businesses, Homebase is the best option. Our platform is tailored to smaller hourly teams. That means you know you’re getting features that fit your processes rather than low-cost versions of tools for enterprise organizations.

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