VIDEO: ADP & Paycom Payroll Software Compared

Hi I'm Justin Fraction for TechnologyAdvice. This video is a comparison between two human capital management (HCM) payroll solutions that I’m sure, you may have heard of: ADP and Paycom. While both of these packages have similar if not the same features, ADP is suited for companies of all sizes while Paycom is suited for medium to large enterprises. The writer of the original article on which this overview is based, wrote something with far more depth than you’ll find here.

So if you’d like to take a look at that you can head on over to our website. But if you’re a visual person and would like a summary, stick around, we’ve got that coming up now. Who are our contenders? ADP provides payroll, HR, and tax services. It’s used by over 990,000 companies across 140 countries. But it’s kind of advanced so it might be more than your company needs. Paycom is a cloud-based solution and it offers five categories of HR software solutions: payroll, time and labor management, HR management, talent acquisition, and talent management.

Paycom is designed to be used by medium, large, and enterprise businesses that need more sophisticated HR solutions but aren’t ready for enterprise-level software yet. First up: Payroll. ADP provides it for small business owners and medium-sized enterprises. It’s purchasable as a stand-alone module that you can connect with an existing HR solution, or you can purchase it as a complete platform. Everyone can access their pay stubs and work history through a mobile app or browser.

It also features automation to handle all payroll taxation and compliance. Checks are available via direct deposit, check delivery, in-house check printing, and payroll cards. Paycom offers payroll and business financial services for medium to large enterprises. Paycom has cloud capabilities with data proliferation to streamline payroll data entry. Paycom also offers self-service payroll options they call Beti. They also offer payroll reconciliation software (Paycom Pay), and general ledger consolidation software (GL concierge).

Other features worth mentioning include expense tracking, automatic payroll syncing, automatic calculations for garnishments, debiting and depositing payroll taxes, and remitting filings for payroll tax management. Next up: Time Management ADP has an attendance system that can let employees clock in at a computer terminal, mobile device, or specialized hardware. It can also work with existing third-party clocks. Their tools can work in conjunction with payroll services and port information entered over to them.

With “Time Kiosk” you can even use ADP’s optional facial recognition software to log employees in and/or their voice activation software to do timekeeping tasks. ADP’s time-off and vacation requests are handled through a self-service portal. Companies and delegate approval through a dashboard where managers can keep track of employees and related information. Paycom is pretty similar. You can use the Paycom app for clocking in and out and they have controls in place to verify data.

Data entered and approved syncs across the app and HR can create custom rules as per their company policies. By pulling Paycom’s digital data across departments, you can get a better understanding of the habits of your employees and use them to formulate company policy. Next: Talent Management. ADP has two systems for talent management separating the process into a recruiting and hiring module and a management and growth module. With them, you can automate tasks, build job descriptions, post to boards and manage your digital paper trail associated with hiring.

The growth and performance module includes tools with goal setting and performance management metrics. It also provides real-time coaching of individuals and continual feedback between managers and their direct reports. In addition to base ADP, you can also purchase several HR management tools that can be included individually or as part of your original purchase. These will allow you to connect with your organization’s existing tools, like payroll, HR, and enterprise resource planning software.

Paycom has a full applicant tracking system where you can build job descriptions, submit them across job boards, and track applicants throughout the hiring process. Paycom’s tools are organized around document management and process automation to give employees access to their HR documentation and speed up approval processes. Their tools connect directly with Paycom’s payroll modules, which means HR professionals can approve benefits, and the changes populate in payroll automatically.

So which one should you choose? While they’re both great pieces of software they’re really built for different kinds of businesses. ADP provides comprehensive HCM functionality for most businesses and they provide more of a “build-as-you-go” module setup. ADP offers a more limited package of payroll & HR software marketed towards smaller businesses. So one could conclude that ADP is great for smaller yet growing businesses that want payroll and HR software that can scale with your company.

Now if your business gets very large or goes international, then you may outgrow ADP. Paycom on the other hand is better for larger businesses looking for an all-around, all-in-one HR solution that encompasses payroll, time, attendance, HR management, and talent management. There’s also a possibility that neither product is right for you. If you need an HR solution that has a mobile-first experience or one that’s embedded in your company’s accounting software then you may want to look elsewhere.

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