Paylocity Collaborates with Deloitte and Launches Modern Workforce Research

Rhea-AI Summary

Paylocity (NASDAQ: PCTY) announced a study conducted by Deloitte revealing opportunities for businesses to save time and money in HR and payroll processes. With the job market evolving post-pandemic, HR teams face new challenges, including compliance and employee expectations. Key findings indicated potential automation savings of $24,500 for payroll tasks, $24,000 for time management, and $23,000 for communications. Paylocity's new Modern Workforce Index leverages data from over 25,000 customers to improve HR efficiency and employee engagement, ultimately enhancing company health.

Positive

• Potential annual automation savings of $24,500 for payroll tasks.
• Potential annual automation savings of $24,000 for time management tasks.
• Potential annual automation savings of $23,000 for communications and engagement tasks.
• Companies with higher MWI scores show 15-25% lower attrition and higher headcount growth.
• Positive employee sentiments increased by over 30% during Q1 2021 relative to the peak of the pandemic.
• Monthly turnover rates have improved to single digits in 2021 after previous double-digit rates.

Negative

• None.

SCHAUMBURG, Ill., April 28, 2021 /PRNewswire/ -- Paylocity (NASDAQ: PCTY), a leading provider of cloud-based HR and payroll software solutions, today announced the release of an extensive independent study by Deloitte that reveals significant opportunities for companies to save time and money in their HR and payroll processes, opening up resources to invest in employees and culture.

As businesses across many states reopen and the job market gains steam, HR teams are navigating new employee expectations for post-pandemic work environments along with complex and evolving compliance standards. The pandemic intensified trends that were already emerging as millennials moved into decision making roles and Gen Z entered the workforce. Connecting geographically dispersed and mobile employees, increased emphasis on employee listening and feedback, and accelerating learning and development were becoming business priorities. Now, to support teams returning to work, 90% of respondents to a Gartner survey said they anticipate continuing the hybrid work model and 44% will offer additional benefits like mental health and childcare leave. 

In addition to these changes and the additional effort that they will require, payroll and HR professionals are challenged to navigate the most impactful legislation to employers since the Affordable Care Act was passed a decade ago, with an unprecedented number of changes to tax, paid sick time, family and medical leave, and even employee privacy. Identifying inefficient processes and automating them is now table-stakes as companies can no longer afford to have their HR teams consumed by resource-intensive tasks.

Key Findings from Deloitte

To address current workplace challenges, Paylocity collaborated with Deloitte to launch Modern Workforce Research, an independent study of how HR can lead organizations through this uncertainty. More than 1,450 HR professionals from a wide range of company sizes and industries provided data related to 10 core functions for which human capital management (HCM) systems can offer streamlined solutions. The analysis quantified time and cost savings from automating common HR and payroll work and revealed that on average, the following activities provide the largest opportunity for impact:

• Payroll and tax tasks completed seven times per week average 43 minutes each, with potential annual automation savings of about $24,500.
• Time management tasks completed 10 times per week average 27 minutes each, with potential annual automation savings of about $24,000.
• Communications and engagement tasks completed six times per week average 58 minutes each, with potential annual automation savings of about $23,000.

Paylocity used Deloitte's research as inputs for the company's new offering, the Modern Workforce Index (MWI). MWI is a proprietary dashboard that tracks a company's progress in delivering more efficient HR processes to employees, improving employee engagement and ultimately optimizing company health. MWI makes the most sophisticated AI accessible to companies and HR teams of any size. Leveraging anonymized and aggregated data from over 25,000 customers, it uses patent-pending technology that combines machine learning algorithms, natural language processing and predictive analytics to highlight time and cost savings opportunities, assess employee sentiment, benchmark against peer companies, and provide prescriptive recommendations for next actions.

"Businesses of all types have faced new challenges and have had to pivot to work differently through the pandemic," stated Chris Havrilla, vice president, Deloitte Consulting LLP, and HR technology and solution provider strategy, Research & Sensing. "Our study revealed that leaders can focus more on enhancing the employee experience when they automate HR and payroll-related tasks, which will be key to succeeding in the post-pandemic era."

Creating a Modern, Engaging Hybrid Work Environment

The challenge of managing a remote and disparate workforce was compounded for Blue Ridge Companies during the pandemic, taxing their already overburdened HR team and front-line managers. "Getting in touch with our property managers, leasing agents, groundskeepers, and other on-the-go roles has been challenging in the past, and the pandemic only added to that difficulty," according to Blue Ridge Companies VP of HR, Susan Watts. "With Paylocity, our people get alerts on their mobile devices when we post important announcements, and peer-to-peer recognition has more than doubled - we've kept everyone informed and connected through a difficult time and our MWI Employee Engagement score shows that."

Companies with higher MWI scores show 15-25% lower attrition, and, in fact, higher headcount growth. Tactics such as driving higher platform utilization among employees; inviting employees to share their thoughts through surveys, journal entries, and shared posts or reactions; or having employees download and use the mobile app can improve scores further, since efforts like these contribute to workplace satisfaction and longer employee tenures.

As the country emerges from the pandemic, Paylocity's aggregated MWI data reflects similar signs of optimism. Employee language used in pulse survey responses, reactions to announcements, and performance journal entries are becoming more positive. In fact, the percentage of employees posting positive comments across the Paylocity platform increased by over 30% during the first quarter of 2021 relative to the peak of the pandemic (April-June 2020). Turnover is improving at a corresponding rate: since the start of 2021, monthly turnover rates have been in the single digits after months of double-digit employee turnover during the height of the pandemic.

To learn more about Deloitte and Paylocity's research, visit paylocity.com/deloitteresearch. For more information on MWI, visit paylocity.com/mwi

About Paylocity
Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based HR and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today's challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit www.paylocity.com.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies. Our people come together for the greater good and work across the industry sectors that drive and shape today's marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Building on more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's more than 330,000 people worldwide connect for impact at www.deloitte.com.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

CONTACT: 
Kellie Flaherty
Walker Sands, for Paylocity
PaylocityPR@walkersands.com
773-459-6954

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SOURCE Paylocity

FAQ

What are the key findings of the Paylocity and Deloitte study regarding HR processes?

The study found potential automation savings of $24,500 for payroll tasks, $24,000 for time management, and $23,000 for communications.

How does the Modern Workforce Index improve HR efficiency for Paylocity clients?

The Modern Workforce Index uses data from over 25,000 customers to identify time and cost savings opportunities and enhance employee engagement.

What impact did the pandemic have on employee turnover rates according to Paylocity?

Since the beginning of 2021, Paylocity reported monthly turnover rates in single digits, recovering from previous double-digit rates.

What percentage of respondents in the Gartner survey anticipate continuing the hybrid work model?

According to the Gartner survey, 90% of respondents expect to continue the hybrid work model.

How has employee sentiment changed according to Paylocity's data?

Employee sentiment has become more positive, with a 30% increase in positive comments during Q1 2021 compared to the peak of the pandemic.