Paycom is a comprehensive human resource information system (HRIS) that offers a range of HR management tools tailored primarily for mid-sized companies. Many companies across various industries and sectors prefer this software for its intuitive platform, feature-rich dashboard, and customized reporting options.
However, before finalizing this software for your business, it’s important to conduct a Paycom cost-benefit analysis. To do this, you need to understand its pricing.
Paycom employs a per-employee-per-month (PEPM) pricing model, with fees varying based on company size and selected modules. Generally, the cost ranges from $25 to $36 PEPM. For instance, a company with 100 employees might expect monthly fees between $2,500 and $3,600.
In addition to these monthly fees, Paycom typically charges a one-time implementation fee, constituting about 15% to 30% of the annual software costs. For example, if the annual software expense is $100,000, the implementation fee would range from $15,000 to $30,000.
Apart from knowing how much does Paycom cost per employee, it’s important to know the factors that impact its overall price. These include:
Company Size
It is one of the most significant determinants of cost. As stated above, Paycom operates on a per-employee-per-month (PEPM) pricing model, meaning the total expense scales with the number of employees.
Larger organizations may benefit from volume-based discounts, which can reduce the PEPM rate compared to smaller companies. For instance, a business with 500 employees may negotiate a lower rate per employee than a business with only 50 employees, leading to cost efficiencies as the workforce grows.
Selected Modules
Paycom offers a suite of modules tailored to streamline various HR functions. These include, but are not limited to:
- Payroll Processing: Automates payroll calculations, tax filings, and employee payments
- Benefits Administration: Simplifies enrollment and management of employee benefits, such as health insurance and retirement plans
- Performance Management: Tracks employee performance and facilitates goal-setting and reviews
- Time and Attendance: Manages employee time tracking and scheduling
- Talent Acquisition: Assists with recruiting, onboarding, and applicant tracking
The cost varies depending on the modules selected. A company opting for basic payroll processing may pay less than one that also integrates advanced features like performance management and benefits administration.
Customization and additional features often come at an extra cost, so businesses should carefully evaluate which modules align with their operational needs and budget.
Implementation Complexity
The implementation phase is another critical cost factor. Paycom charges an upfront implementation fee, which can range from 15% to 30% of the annual software costs. This fee covers the setup process, including data migration, system configuration, and training for HR staff.
The complexity of implementation depends on factors such as:
- Existing Systems: If a company has legacy HR or payroll systems, migrating data and ensuring compatibility can be more complex and time-consuming, increasing costs
- Customization Needs: Tailoring Paycom to meet specific organizational requirements, such as integrating it with third-party tools, can require additional effort and resources
- Workforce Diversity: Businesses with multiple locations, varying compliance requirements, or a mix of full-time and part-time employees may face higher implementation challenges
While Paycom offers a unified platform with internally developed tools, it may not seamlessly integrate with third-party HR tools. Organizations requiring such integrations should assess compatibility to ensure it aligns with their operational needs.
While the factors discussed above will help you get an estimate, you can contact us for a customized Paycom pricing plan tailored specifically for your business.