Any business looking to automate its human resources (HR) management process may come across these two powerful options in the market: Namely and Paylocity. Namely stands out for its strong compliance and performance management tools, while Paylocity advances with its in-depth HR insights, global payroll, and AI-powered tools.   

However, the right solution for your business involves considering more factors. Today, we will help you compare Namely vs Paylocity to explore their unique features and core functionalities to determine which HR solution is the best fit for your business.  

Namely Vs Paylocity: At A Glance 

Feature  

Namely    

  Paylocity  

Compensation And Time Management 

  • Integrated multi-state payroll, HR, and attendance  
  • W-4S, 1099s, W-2S 
  • Mobile app for time and attendance  
  • ACA enrollment  
  • Integrated global payroll, HR, and attendance  
  • On-demand pay 
  • W-2s, 1099s, ACA, EEO  
  • Compliance dashboard 
  • Web and mobile app for self-service   

Human Resources Management 

 

  • Automates HR tasks  
  • Offers personalization and scalability
  • Task automation self-serve engine  
  • Visualized data reporting

Talent And Performance Management  

 

  • Learning and development tools  
  • Company social newsfeed  
  • Performance review  
  • Competency mapping 
  • Goal alignment  
  • AI-Assist   
  • Goal and objective management  
  • 9-box talent assessment templates  

 Customization And Integration  

  • Pre-built integrations  
  • Customization options with ATS, LMS, or ERPs 
  • Offers extensive integration options in its payroll, benefits, and performance system  
  • Custom workflow  
  • developer-friendly open APIs  

HR Reporting And Insights  

 

  • Ad-hoc report builder  
  • Point-in-time reporting  
  • Custom reporting  
  • Time off analytics   
  • Modern Workforce Index  
  • AI-powered tools  
  • Real-time analytics  
  • Benchmarking tools  

What Is Namely?  

Namely is a cloud-based HR solution that offers a comprehensive suite of tools to manage employee data, payroll, benefits, and compliance in a streamlined manner. Designed as a centralized hub for HR teams, it helps them oversee performance reviews, generate detailed analytical reports, and offers secure storage for sensitive documents.   

The platform tracks time off, work hours, and tax filing while providing employee self-service tools to manage payrolls, reducing the burden on HR teams. Namely provides an intuitive interface that integrates various HR functions into one central system, enabling HR teams to manage their workforce efficiently without relying on multiple software solutions.  

Unique Features Of Namely  

Ad-Hoc Report Builder: Part of Namely’s ‘HR Analytics’ suite, this feature empowers HR teams to create custom and exportable reports effortlessly by pulling data from payroll, performance, and employee demographics without requiring technical expertise 

Managed Services: Namely offers outsourcing services for handling payroll, benefits administration, compliance, and other HR tasks, allowing businesses to focus on strategic priorities rather than being bogged down by administrative tasks 

Comply Advice & Action: This compliance package includes a database of employment law sources, helping businesses mitigate compliance risks. It also features live HR advisors, a living handbook, a learning management system (LMS), and OSHA log management 

Pros And Cons Of Namely  

Pros  

  • Training resources readily help users streamline their operations without waiting for support  
  • ‘Company Social Newsfeed’ boosts employee engagement, enabling them to share milestones, photos, and profiles 
  • A dedicated account manager provides personalized support during implementation and integration 

Cons 

  • The performance tool lacks in-depth analytics   
  • Ad-hoc HR tasks may experience delays, with client space responses taking up to 24 hours 

What Is Paylocity?  

Paylocity is a cloud-based HR solution that automates the entire employee lifecycle, from hiring to offboarding, empowering businesses to run their HR operations efficiently. With its advanced suite of tools, the platform handles payroll submission, real-time data insights, error reduction, and tax compliance.   

Moreover, it streamlines global payroll for international employees and offers time tracking, performance management, and employee engagement tools to enhance the overall employee experience  

Unique Features Of Paylocity  

  • HR Edge: This HR consulting service minimizes compliance risk through a dedicated ‘HR Account Manager’ and an extensive library of resources. It covers topics such as healthcare reform, wages and hours, employee leave, state laws, discrimination, and more, enabling businesses to stay compliant at the federal, state, and local levels 
  • Global HR And Payroll: Paylocity offers global HR services to businesses operating outside of the United States, including business registration, payroll administration, benefits, and performance management. This empowers businesses to navigate the complexities of global operations while ensuring compliance with local laws and regulations 
  • Headcount Planning: As part of Paylocity’s talent management system, headcount planning enables HR executives to visualize any staffing gaps, empowering companies to plan and manage their workforce. It also helps businesses track employee turnover, growth, and any potential challenges related to workforce capacity 

Pros And Cons Of Paylocity   

Pros 

  • Many users appreciate the clock-in and clock-out option via cell phone, citing it as crucial for managing remote or field teams  
  • Allows custom workflow tailored to the specific needs of businesses  
  • Offers a community section for employees to announce or celebrate achievements 

Cons  

  • Email alerts lack full message content, requiring users to access the app to read the entire message 
  • Some users reported limited functionality in onboarding suite, especially in deleting onboarding packets, tasks, or templates once they are created  

Namely vs Paylocity – Features Comparison 

Compensation And Time Management

Namely’s attendance and payroll suites simplify employee compensation by integrating its online payroll system with HR, benefits, and time-tracking tools. This seamless integration ensures a smooth flow of data during payroll processing, reduces errors, and simplifies compliance.

The platform also handles electronic state and federal W-4s, wage garnishments, unlimited on- and off-cycle payrolls, mobile-friendly 1099s and W-2s, and a self-service mobile app for employees.

Paylocity’s payroll system, on the other hand, reduces manual work by automating tax calculations and filings and integrating attendance and HR systems. This includes handling direct deposit, check printing, an on-demand pay option, a self-service mobile app, and digital tax forms such as W-2s and 1099s.

One standout feature is its global payroll capabilities and a ‘Compliance Dashboard’ for managing I-9 verifications, ACA, EEO data, and compliance training courses.

Winner: This round ends in a tire as both platforms offer integrated solutions for payroll and attendance management. Paylocity excels with its global payroll handling, while Namely stands out as a strong option with its US-centric compliance management.

Human Resources Management

Namely’s HR suite helps businesses automate their repetitive administrative tasks, making HR management more efficient. It covers everything from employee onboarding to customizable workflows and approval systems. The platform, designed for scalability and personalization, also offers employee and manager self-service, a mobile HR app, and an e-signature for smoother HR processes.

Paylocity also automates routine HR tasks through its self-serve task automation engine. Its standout feature, however, is its human resources information system (HRIS), which uses advanced tools to provide real-time reporting and visualized data for informed decision-making. The platform also enables employees to access and manage their payroll and employee information 24/7 via desktop or the Paylocity mobile app.

Winner: Paylocity beats Namely because of its advanced automation, HRIS, and analytical capabilities, which provide reporting and trend analysis to businesses with complex HR operations and bigger workforces.

Talent And Performance Management

Namely offers a comprehensive and powerful suite of tools for end-to-end employee life cycle management. This includes job posting, competency mapping, applicant tracking, goal alignment, performance review, and 360 feedback. However, the highlight of the system is its ‘Company Social Newsfeed’ and ‘Learning and Development’ tools, designed to enhance employee engagement and performance.

Paylocity leverages AI in its talent management suite to help businesses attract, retain, and develop top talent, with features designed to improve engagement and streamline performance management. The tools include ‘AI Assist’ for effective communication across the company, goal and objective management, self-appraisals, 360 feedback, and 9-box talent assessment templates.

Winner: Namely wins this round for its advanced tools for employee performance and engagement management. However, Paylocity also offers effective and streamlined performance tracking using the generative power of AI.

Customization And Integrations

Namely offers customization and pre-built integration options, enabling businesses to connect with other business systems like an ATS, LMS, or ERP. It also enables companies to build their own integration through its secure API.

Paylocity, on the other hand, offers developer-friendly open APIs and delivered integrations as a part of the package. Its customization options are also more comprehensive, offering custom workflows, custom reporting dashboards, integrations in its recruitment, payroll, performance, and benefits system, as well as third-party application integrations.

Winner: Paylocity has a clear edge against Namely when it comes to customization and integration options, helping businesses tailor their workflow processes and connecting with necessary business systems.

HR Reporting And Insights

Namely provides a powerful range of HR analytics tools and features, including ad-hoc report builders, point-in-time reporting, exportable reports, diversity insights, and time-off analytics.

Paylocity takes HR reporting and analytics a step ahead with its ‘Modern Workforce Index’. Powered by AI, it highlights key insights and areas of opportunity for businesses to work on. The platform also offers customizable dashboards, real-time analytics, employee sentiment analysis, and benchmarking tools in its reporting suite.

Winner: Paylocity wins here because of its more advanced HR analytics and reporting capabilities. While Namely features user-friendly and scalable reporting tools, it lacks the detailed data analytics that Paylocity offers.

Final Verdict: Namely Vs Paylocity – Who Takes The Lead?  

Both Namely and Paylocity offer effective and comprehensive HR solutions, but which software is better than the other depends on who is asking this question.   

For a small to mid-sized US-based business, Namely presents itself as a powerful option with its effective HR management, performance tools, and employee engagement. However, if you are a mid-sized to large enterprise, Paylocity is the right choice for your business with superior HR reporting, AI integration, and global payroll administration.   

Paylocity takes the lead over Namely because of its advanced data analytics, strong reporting capabilities, advanced customization options, and global scalability, especially for international businesses with complex HR needs.  

The final decision rests on your business needs and which functionalities you are interested in. You can contact us for further guidance to help you finalize your purchase decision.