# Paylocity

**Source:** https://geo.sig.ai/brands/paylocity  
**Vertical:** HR Tech  
**Subcategory:** Cloud Payroll  
**Tier:** Challenger  
**Website:** paylocity.com  
**Last Updated:** 2026-04-14

## Summary

Mid-market HCM platform with $1.1B revenue; modern payroll and HR with Community employee engagement features competing with ADP and Paychex for 20-1,000 employee companies.

## Company Overview

Paylocity is a cloud-based human capital management (HCM) and payroll platform serving mid-market US employers — companies with 20 to 1,000+ employees — with an integrated suite covering payroll processing, HR management, benefits administration, talent management, time and attendance, and employee engagement tools. Listed on NASDAQ (NASDAQ: PCTY) and headquartered in Schaumburg, Illinois, Paylocity generates approximately $1.1 billion in annual revenue with strong recurring revenue from software subscriptions and payroll processing fees.\n\nPaylocity's platform is built around its modern, employee-centric UX that differentiates it from legacy HCM systems — the Community feature creates an internal social network for employee communications and peer recognition, and the Learning Management System delivers training content within the same platform employees use daily. The payroll engine handles complex multi-state payroll calculations, tax filings, and direct deposit with automated garnishment management and integrates with 400+ benefits carriers and third-party HR systems.\n\nIn 2025, Paylocity competes in the mid-market HCM space against ADP Workforce Now, Paychex Flex, Ceridian Dayforce, and UKG Ready for HR and payroll platform share. The mid-market HCM category has seen significant consolidation and feature expansion as vendors compete to become the system of record for all people-related operations. Paylocity's competitive advantage is its product-led growth (strong NPS from employees who enjoy the UX versus competitors) and its employee engagement features that go beyond core HR administration. The 2025 strategy focuses on adding AI capabilities to HR workflows (AI-assisted job descriptions, sentiment analysis from employee surveys), deepening its talent management suite, and growing its enterprise-adjacent customer segment.

## Frequently Asked Questions

### What is Paylocity?
Paylocity Paylocity serves businesses as cloud payroll and HCM platform, NASDAQ $9B valuation, following 1997 Steve Sarowitz founding in Illinois

### When was Paylocity founded?
Paylocity was founded in 1997 in Illinois. Steve Sarowitz founded Paylocity in Illinois in 1997 as cloud-based payroll and HCM platform with modern employee experience and self-service, grew to NASDAQ $9B valuation.

### What are Paylocity's major milestones?
Paylocity's history includes several key milestones: 1997: Paylocity Founded Illinois 2014: IPO NASDAQ:PCTY 2021: S&P MidCap 400 Addition 2024: Cloud HCM Platform $9B

### What is Paylocity's mission?
Paylocity's mission is to Elevate both the employer and employee experience.

### Who founded Paylocity?
Paylocity was founded by Steve Sarowitz. Entrepreneur who built modern cloud payroll and HCM platform

### What products or services does Paylocity offer?
Paylocity Paylocity serves businesses as cloud payroll and HCM platform, NASDAQ $9B valuation, following 1997 Steve Sarowitz founding in Illinois

### Who uses Paylocity?
Paylocity Paylocity serves businesses as cloud payroll and HCM platform, NASDAQ $9B valuation, following 1997 Steve Sarowitz founding in Illinois

### What makes Paylocity's platform distinctive for mid-market employers?
Paylocity differentiates in the competitive mid-market HCM space through its modern, employee-centric UX and engagement-focused feature set — the Community internal social network (employee recognition, communications, video updates from leadership), On Demand Pay (allowing employees to access earned wages before payday), and Learning Management System (employee training and development) go beyond the payroll and HR administration functionality that legacy mid-market competitors like Paychex provide. Paylocity's product strategy is premised on the insight that employee engagement and retention are top-of-mind for mid-market HR leaders, and that HCM software that improves the employee experience (rather than just automating HR processes) commands premium pricing and lower churn. The company generates approximately $1.1 billion in annual revenue with strong subscription retention rates above 90%.

## Tags

b2b, saas, hr-tech, public, smb

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*Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*