Paylocity is Vendor of Assurance in TCM Value Index

We are happy to share some insights about Paylocity drawn from our latest Value Index research, Ventana Research Value Index: Total Compensation Management, which assesses how well vendors’ offerings meet buyers’ requirements.

In all of our Value Indexes we utilize a structured research methodology that includes evaluation categories designed to reflect real-world criteria incorporated in a request for proposal (RFP) and vendor selection process for total compensation management. We evaluated Paylocity and 13 other vendors in seven categories, five relevant to the product (adaptability, capability, manageability, reliability and usability) and two related to the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each category to reflect its relative importance in an RFP process, with the weightings based on our experience and on data derived from our benchmark research on total compensation management.

Paylocity’s approach to compensation management is that it is utilized with its HR, payroll and talent products while also supporting the range of hourly to salary workers. Paylocity was categorized as a Vendor of Assurance, ranking 14th overall in this Value Index evaluation. It ranked 14th in Product Experience where it performed best in Reliability and Adaptability, placing 12th in both. It ranked 11th in Customer Experience and performed best in Validation, placing ninth. Paylocity’s overall performance was impacted by its lower rankings in both TCO/ROI where it ranked 12th, and Manageability where it ranked 14th. These two categories represent 25% of the weighting in the overall Value Index.

Our assessment finds that Paylocity could improve its performance in Usability, where it ranked 14th, by supporting a broader range of users and experience that interact with the application. In Capability, where it ranked 13th, Paylocity can deepen its support for the various types of compensation and processes that intersect across departments and business units.

This assessment was based on Compensation Management products and was available in November of 2022.

Paylocity, like all compensation management vendors, should ensure they continue to focus on capabilities beyond the core that will only continue to increase in their importance to buyers, like prescriptive analytics, proactive pay equity management, and creative and personalized compensation plans that are becoming increasingly more complex.

This research-based index is the most comprehensive assessment of the value of total compensation management software in the industry. Technology buyers can learn more about how to use our Value Index by clicking here and included vendors that wish to learn more can click here. Read the report here.