Ventana Research Analyst Perspectives

Payroll Software Value Index: Paychex Appears Poised for Growth

Posted by Steve Goldberg on Apr 7, 2020 3:00:00 AM

Here are some insights on Paychex drawn from our latest Value Index research, which provides an analytic assessment of how well payroll software vendor offerings VentanaResearch_PayrollSoftware_ValueIndex-Generic-2address buyers’ requirements. The Ventana Research Value Index on Payroll Software 2020 is the distillation of a year of market and product research efforts by Ventana Research. We evaluated Paychex and seven other vendors in seven categories, five product-related (adaptability, capability, manageability, reliability and usability) and two concerning the vendor (TCO/ROI and vendor validation). To arrive at the Value Index rating for a given vendor, we weighted each of the seven categories to reflect its relative importance in an RFP process, with the weightings based on data derived from our benchmark research on payroll software.

Paychex, a vendor of payroll Ventana_Research_Value_Index_Payroll_Software_2019_Paychex_191119management systems and tools geared to small businesses, ranks eighth overall in this Value Index evaluation.

Its product, Paychex Flex, provides a unified experience across its product modules and boasts fast mobile-based time entry. Data integration across all modules on the platform is seamless and the user experience is consistent across desktops, tablets and mobile devices. The vendor offers a chatbot that’s programmed to answer hundreds of common payroll and HR questions. In addition, Paychex has invested in AI, machine learning and RPA to personalize and automating repetitive tasks.

Our research finds areas for improvement in the product’s analytics capabilities, some of which aren’t on par with those offered by market leaders, including its lack of a role-based KPI dashboard. Paychex’s payroll offering is centered on reports rather than dashboard-based analytics. The vendor performs least well in Adaptability due to less robust configurability capabilities in relation to personalized dashboards and the overall user experience. The vendor’s response to our survey offered scant details on some product features and likely would have performed better had it provided more information and documentation for our evaluation.

Paychex has held a large share of the small business market for decades because it offers a reliable payroll product at a reasonable cost, as well as name recognition, thought leadership and research. The vendor is expanding its coverage outside the U.S. and seems poised for growth. Since our Value Index analysis, Paychex has enhanced integrations, document management and the Flex dashboard as well as its pay-on-demand solution.

This research-based index is the most comprehensive assessment of the value of payroll software in the industry. You can learn more about our Value Index as an effective vendor selection and RFI/RFP tool here. Participating vendors can learn more about how to use the Value Index here.

Regards,
Steve Goldberg

Topics: Human Capital Management, Learning Management, Workforce Management, candidate engagement, Continuous Payroll, total rewards management

Steve Goldberg

Written by Steve Goldberg

Steve is responsible for the Human Capital Management (HCM) research and advisory services practice. He guides HR and business leaders in leveraging their workforce for competitive advantage. He guides HCM technology vendors on the market of buyers and where their applications and technology can have maximum impact. Steve's uniquely diverse HCM experience spans over 30 years, including HR process and HCM systems practitioner leadership roles, heading up product strategy for one of the most respected HCM application vendors, and operating his own global advisory practice. His expertise areas of coverage include HRMS, Talent Management and Workforce Management, with specialized focus on recruiting, learning, performance, compensation and payroll. Prior to joining Ventana Research, Steve worked as a corporate VP in HR at UBS/Swiss Bank Corporation and Huizenga Holdings, product strategy leader at PeopleSoft and Unicru, and was also VP and Research Director at Bersin & Associates. Over 35,000 HR professionals and business executives have been informed by one of Steve's presentations on HCM, or have read his published work. Steve holds an MBA in Human Resource Management from University of Buffalo School of Management and a BBA in Industrial Psychology from The City University of New York.