Improved Efficiency For HR With Time-Saving Tools In A Single Solution

Evidence and data. Interviewees reported that Paycom delivered time savings to their HR teams. As a single solution with interconnected data and automation, Paycom streamlined workflows at the interviewees’ organizations and reduced manual effort across several functions. In particular, interviewees noted that their HR teams saw time savings as they managed responsibilities such as payroll, benefits, onboarding, training, and time off. On average, interviewees’ organizations reported time savings of approximately 35% for their HR teams due to the efficiency-enhancing features of the unified Paycom solution.

• Interviewees said a key differentiator of Paycom was that it served as a single, interconnected solution with seamless data flow across its various tools, which resulted in greater data accuracy. In contrast, their legacy HR tech was disjointed and often required working with disparate data.

• The chief HR officer in consumer goods described the effectiveness of various tools across Paycom’s single solution: “Paycom has really helped us. Onboarding — never been better, people love it. Applicant tracking — amazing. Beti [payroll] — great. Background checks — awesome. Benefits administration — simple, easy. Time and attendance — amazing.”

• Paycom’s interconnectivity saved time and reduced mistakes associated with entering, compiling, and reviewing data for core HR responsibilities like benefits, payroll, and time off. The director of HR in entertainment added, “The automation that Paycom puts in place with Beti [payroll], GONE® [its automated time-off request decisioning feature], and their other tools reduces our manual interventions.”

• Paycom also automated workflows, such as tracking approvals of items related to time-off requests and PAFs. The director of HR in entertainment said: “We use Paycom’s automatic workflows. They’re good time-savers, and helpful from a compliance perspective.”

• The HR manager in manufacturing highlighted that their team benefited from all recordkeeping being easily accessible in one place with Paycom: “We can immediately pull any information or records because it’s all in Paycom. That has been a big benefit for us.”

• Interviewees said their organizations achieved greater efficiency with Paycom because employees themselves took greater ownership of their own data. The director of HR in entertainment elaborated: “Employees put their own information into Paycom and manage that data. That is measured through the [Direct Data Exchange®] score, and ours is currently about 99.97[%]. We see a strong ROI in having the employees be the leader of their own information. It saves time for their managers and us in HR.”

• Interviewees explained that data only needed to be entered once — much of it by the employees themselves in the hiring and onboarding phases — before flowing throughout the entire Paycom system. This alleviated duplicate work and errors and contributed to the overall time savings of the HR team.

• Interviewees said that other time-consuming HR functions like benefits administration were more efficient with Paycom’s single, connected system. The chief HR officer said: “The benefits [process] feeding into the Paycom system is amazing. Open enrollment can be the biggest pain for HR. With Paycom, there are no issues. We’re not sitting with employees — the vast majority can do it on their own.”

• Several interviewees’ organizations used Paycom to manage training. Employees were sent training documents, videos, and notifications through the Paycom software, accessible via the mobile app from anywhere and at any time. The HR generalist in manufacturing said: “Paycom has made our training coordinator’s life so much easier. She created the training in Paycom, and everyone can complete the training there. Before, it was gathering everyone in a room and very manual.”

• Interviewees said that Paycom being built on one database resulted in greater data accuracy and eliminated the need for data reentry and reconfiguration. This resulted in more automated reports for HR and other departments, such as finance. Comparing it to their previous HR system, the chief HR officer said, “[Reporting with Paycom, such as for OSHA, unemployment, and disability,] is above and beyond better.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• There are six employees in the HR department.

• Due to time-saving tools in the single Paycom solution, these employees save 35% of their total time. This results in 4,368 total hours saved each year. This does not include additional time savings from Paycom’s position seat management, which is addressed and calculated in the next section, “Automation And Standardization With Position Seat Management.”  

• The fully burdened hourly rate for employees is $55.

• The productivity recapture rate for employees is 80%. This means employees convert 80% of their saved time into productive time.

Risks. The benefit of improved efficiency for HR with time-saving tools in a single solution will vary based on:

• The number of HR employees and their average salaries.

• The processes in place prior to Paycom. 

Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $454,000.

Automation And Standardization With Position Seat Management

Evidence and data. Several interviewees explained that their HR teams saw additional time savings specifically due to Paycom’s position seat management functionality, a feature of its overall position management tool. By tying job attributes to positions rather than individuals, the software drove efficiency and compliance by prepopulating fields, enabling workflows, and ensuring uniformity. Among interviewees who could quantify the benefit of position decisioning, HR teams saw 10% to 15% total time savings.  

• The director of HR in entertainment explained that seat positioning was an important feature of Paycom’s single solution, stating, “The interconnectivity and data flow [with Paycom’s seat positioning] saves time, which has been a big benefit for us.”

• Interviewees explained that when they set up new position seats in Paycom, the software anticipated what needed to be done by prepopulating fields and enabling automatic workflows.

• The HR manager in manufacturing highlighted that the functionality simplified work for their department by helping orchestrate workflows: “With position management [in Paycom], HR doesn’t have to keep a spreadsheet or memorize anything because the needed information is going to the right manager. It’s part of the workflow.”

• Interviewees further explained that position seat management helped maintain uniformity and kept everyone on the same page. The director of HR in entertainment added, “Position seat management has been really helpful for us from a budgetary perspective and an audit perspective, making sure all our data is clean.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• There are six employees in the HR department.

• Due to Paycom’s seat positioning, these employees save 10% of their total time. This results in 1,248 total hours saved each year.

• The fully burdened hourly rate for HR employees is $55.

• The productivity recapture rate for HR employees is 80%. This means HR employees convert 80% of their saved time into productive time.

Risks. The benefit of automation and standardization with position seat management will vary based on:

• The number of HR employees and their average salaries.

• The size and complexity of the organization.

• The extent to which Paycom’s position seat management is leveraged.

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $123,000.

Productivity Gains For Managers

Evidence and data. Interviewees said that a top benefit of Paycom was its effectiveness in easing the pain points managers across their organizations experienced. Paycom allowed managers to more easily and efficiently execute tasks, such as approving timecards, generating PAFs as needed, and completing employee reviews. On average, managers at interviewees’ organizations saved approximately an hour per week due to Paycom.

• Interviewees noted that Paycom made the data that managers needed easily accessible in a single system. The director of HR in entertainment noted the efficiency gains from this: “From the standpoint of managers, the real time savings is being able to access their employees’ information. They can manage a high volume of timecards, which is critical for us. … Having Paycom is great for managers.”

• The same interviewee explained that Paycom was easy for managers to use: “Paycom has a good manager interface [Manager on-the-Go®], which allows them to focus on their managerial duties rather than trying to understand how to navigate an HR system.”

• Paycom’s PAF functionality was extensively used at multiple interviewees’ organizations. This allowed managers to complete all necessary documentation (e.g., related to performance, training, accidents, etc.) in a single solution, either at their desk or from anywhere with the Paycom mobile app.

• The director of HR in services said of the PAF functionality in Paycom: “It’s a repeatable process for our managers. They can document more accurately and efficiently, and it’s filed right in the personnel file, all within one app.”

• The same interviewee explained that the data from PAFs flowed throughout the entire Paycom system: “The PAFs are one of Paycom’s best tools for us. When the PAF is submitted, the changes will be applied systemwide. It’s fantastic to be able to customize them and create whatever form we need.”

• In addition to driving efficiency, Paycom enabled managers to execute more robust, transparent, and accurate employee reviews. The chief HR officer in consumer goods explained that this became an employee enhancement tool and helped their organization achieve “best place to work” status.  

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• There are 40 managers across the organization.

• Due to Paycom, each manager saves 1 hour per week. This results in 2,080 total hours saved each year.

• The fully burdened hourly rate for managers is $60.

• The productivity recapture rate for managers is 80%. This means managers convert 80% of their saved time into productive time.

Risks. The benefit of productivity gains for managers will vary based on:

• The number of managers and their average salaries.

• The tools available to them prior to Paycom.

• The amount of time spent on tasks that are easier and more efficient with Paycom, such as approving timecards, creating PAFs, and completing employee reviews.

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $223,000.

Time Savings For Employees Across The Workforce

Evidence and data. Interviewees also noted that Paycom resulted in time savings for all employees across the workforce by enabling them to efficiently manage HR-related tasks on a single platform. With Paycom’s Employee Self-Service® and Beti [payroll], interviewees noted their employees took greater ownership of their data and could easily self-serve as they handled tasks such as benefits management, personal information updates, time-off requests, and time sheet approvals. Interviewees also highlighted that Paycom streamlined key moments in the employee lifecycle, including onboarding and open enrollment. Interviewees estimated that, on average, employees saved about an hour per month due to Paycom.

• Interviewees repeatedly noted that employees benefited from taking greater ownership of their own data in Paycom. The HR manager in manufacturing explained: “Paycom makes a big difference for employees. Employees are about 75% faster doing things themselves in Paycom as opposed to having to make an appointment [with HR].”

• The director of HR in entertainment further explained that time savings resulted from Paycom being easy for employees to access and use: “Paycom puts things in a very easy-to-read format. It’s intuitive to click and navigate. That definitely saves employee time.”

• Multiple interviewees highlighted the benefit of the automated payroll tool, Beti, noting that it gave employees greater visibility and agency in regard to their paychecks. The director of HR in services said: “With Beti, employees really appreciate being able to see their check before payroll is submitted. That has been fantastic. It also adds accuracy and transparency.”

• Paycom served as a single solution throughout the employee lifecycle, from application and onboarding to time-off requests and the employee review process. The single, integrated system eliminated the need to learn multiple systems and improved the overall employee experience at interviewees’ organizations.

• Interviewees observed that the time savings with Paycom allowed employees to concentrate on their actual jobs, instead of being tied up by HR-related administrative tasks.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• There are 500 total employees at the organization.

• Due to Paycom, each employee saves 1 hour per month. This results in 6,000 total hours saved each year.

• The fully burdened hourly rate for employees is $30.

• The productivity recapture rate for employees is 80%. This means employees convert 80% of their saved time into productive time.

Risks. The benefit of time savings for employees across the workforce will vary based on:

• The number of employees and their average salaries.

• The tools available to them prior to Paycom.

• The amount of time employees spend on HR-related tasks.

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $322,000.

Business Benefits Due To Better Visibility And Data Analytics

Evidence and data. Interviewees emphasized that beyond HR-related efficiency, Paycom’s value extended to broader business benefits. In particular, the improved visibility and data analytics with Paycom allowed their organizations to better understand their operations and see growth and cost savings. Specific use cases at interviewees’ organizations varied but commonly included reduced overtime and temporary employee spending, which in some cases resulted in hundreds of thousands of dollars in annual savings.

• Having a single solution built on one database allowed for the comprehensive analytics that interviewees wanted. The director of HR in entertainment explained: “Having a single solution makes the data analytics much easier. It’s not different formats of data. All analytics coming from one solution has been critical for the speed of our evaluations and for analyzing strategy.”

• For example, reporting and scheduling tools with Paycom better tracked and ultimately reduced overtime at interviewees’ organizations. The chief HR officer in consumer goods added, “Paycom helps managers in holding people accountable and watching the overtime.”

• Interviewees also said Paycom allowed them to streamline hiring and better plan for when employees take time off. This allowed for a reduction in spending on temporary work. The chief HR officer in consumer goods explained, “My temp spending has gone down over $300,000 using Paycom and having a single source to capture resumes and cover new hires.”

• The same interviewee noted that their organization grew by over 50% in just a few years and attributed some of that success to the insights that came only after their Paycom implementation. More broadly, interviewees said the analytics from Paycom helped leadership make better business decisions and identify growth opportunities. The interviewee elaborated: “[KPIs and analytics with Paycom allow you to] understand your labor costs, your benefit costs, your time to hire, your leave, and make sure you’re in compliance, especially as you grow throughout the country and globally. Making sure you have a partner in your HRIS [HR information system] can help you with that growth.”

• Use cases at interviewees’ organizations that stemmed from the better visibility and analytics with Paycom varied and continued to evolve to meet business needs. Additional examples include creating bonus programs, identifying applicable grants, and better managing high-turnover positions.

• The HR manager in manufacturing said: “We make a lot of our business decisions based on information we get in Paycom. The reports allow us to make those business decisions based on real information.”

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• The organization leverages improved visibility and analytics with Paycom for three cost-saving use cases annually.

• The cost savings per use case are $100,000 annually.

Risks. The benefit of business benefits due to better visibility and data analytics will vary based on:

• The number of opportunities and use cases where data, analytics, and reporting from Paycom can be leveraged for business benefits like cost savings.

• The sophistication of analytics and reporting prior to Paycom. 

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $671,000.

Improved Compliance

Evidence and data. Some interviewees estimated that their HR teams saved several hours a week on audit-related work due to Paycom’s easy data access and more automated reporting. Furthermore, Paycom helped ensure compliance at interviewees’ organizations by streamlining and standardizing processes related to maintaining documentation, ensuring confidentiality, and completing training.

• Interviewees explained that Paycom’s single solution consolidated data in one platform, eliminating the inefficiency and risk that came with pulling information from the disparate sources in their legacy environments. They said that with Paycom, data flowed where it needed to, making it simple to pull information or create reports.  

• Interviewees said that Paycom provided all the reporting they needed, including those related to taxes, unemployment, disability, the Employee Retirement Income Security Act (ERISA), and the Affordable Care Act (ACA).

• The director of HR in entertainment said: “We’re able to do our ACA reporting, our W-2s, our I-9s, everything we need to think about from a compliance perspective is all on the same platform [with Paycom].” The chief HR officer in consumer goods added: “We love the OSHA reporting. Paycom makes it so easy… [and] helps us stay in compliance.”

• This same interviewee said that the data access and automated reporting with Paycom led to substantial time savings, estimating that their HR team went from spending 8 hours a week on compliance-related work to 1 hour.

• Paycom also streamlined several specific processes that ensured interviewees’ organizations stayed compliant. The director of HR in services said, “Paycom has been very helpful in meeting compliance requirements in terms of training, documentation, getting proper signatures, and keeping things confidential.”

• Multiple interviewees highlighted that proper training was necessary to stay compliant and that they successfully used Paycom’s learning management tool to help do so. The HR manager in manufacturing explained: “Paycom keeps, in one location, who is up to date on their training and, therefore, who can do particular work. I would say [Paycom] is very essential.”

• Interviewees described other ways that Paycom ensured compliance, such as tracking compensation for job descriptions and titles. Additional use cases at interviewees’ organizations included using Paycom to better track accidents and workers’ compensation claims, as well as automatically calculating shift differentials across varying jurisdictions.   

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

• Prior to Paycom, HR spends 8 hours per week on compliance-related work.

• With Paycom, there is an 80% reduction in the time spent on this work. This results in 332.8 total hours saved each year.

• The fully burdened hourly rate for HR employees is $55.

Risks. The benefit of improved compliance will vary based on:

• The amount of HR time spent on work related to auditing and other compliance-related tasks.

• The average salaries of HR employees.

• Auditing and compliance-related processes in place prior to Paycom.

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $41,000.

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

• Improved employee experience. Interviewees consistently described Paycom as intuitive, easy-to-use, and a time-saver, all of which enhanced the experience for HR professionals and the other employees at their organizations. Reflecting on frontline employees, the chief HR officer in consumer goods said: “They love seeing their PTO and understanding it. They love Beti [payroll] and approving their checks.”  

• A single comprehensive solution. Interviewees explained that Paycom was a single software with automation across tools for payroll, time and labor management, talent acquisition, talent management, and HR management. As such, it served as a complete HR solution at their organizations and eliminated any need for supplemental tools from other providers.

• Improved data accuracy. Interviewees noted that with the single Paycom solution, data is entered once and flows throughout the system. This eliminated redundant data entry, helped ensure accuracy, and ultimately contributed to operational efficiency, quality reporting and analytics, and better business decision-making at interviewees’ organizations. The director of HR in entertainment added: “Pulling information from multiple systems always has a risk of user error and data quality issues. So having it pulled from Paycom, which is the source of truth for us, has been super beneficial in managing risk appropriately.”

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Paycom and later realize additional uses and business opportunities, including:

• Continual product development. Interviewees said Paycom continued to advance the technology and tools of the platform. The director of HR in entertainment elaborated: “Paycom pushes their platform to be its best. They have been a good choice for us as a vendor partner. The team is top-notch. The platform is evolving and growing with us, which is really important.”

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).