New Study Demonstrates the Measurable Impact of Paycom's Automated HR Technology

As businesses face growing pressure to streamline operations and enhance the employee experience, a new study shows how HR technology from Paycom, a provider of cloud-based HCM software, is helping companies meet the moment.

A newly commissioned Total Economic Impact™ (TEI) study by Forrester Consulting reveals the tangible value of Paycom's fully automated, single-database software. According to the study, organizations using Paycom significantly reduced manual work, improved data accuracy, and gained real-time insights, leading to better workforce decisions and measurable business outcomes.

Quantified Benefits Across the Organization

To quantify Paycom's impact, Forrester aggregated insights from multiple client interviews into a composite organization representing a mid-size business of 500 employees, including six HR employees and 40 managers. This organization used Paycom tools across all five product suites after switching from a legacy provider that lacked a unified solution.

Based on this model, the study found that over a three-year period, the composite organization experienced:

• a 362% return on investment (ROI)
• over 45% in total time saved by HR annually
• an 80% reduction in time spent on compliance work
• $300,000 annual savings due to a single database allowing better data visibility and analytics

Chad Richison, Paycom founder and CEO, said, "Paycom is the most automated solution in the industry, and our clients frequently attest to that. By prioritizing full-solution automation, we are creating value, driving efficiency and allowing our clients to achieve even greater ROI."

Simplifying the Employee Life Cycle with a Single System

Unlike traditional HCM providers that rely on multiple databases or fragmented integrations, Paycom delivers its full suite of tools, spanning payroll, time and labor, talent acquisition, talent management, and HR management, on a single platform. That design allows data to flow automatically across the system, improving accuracy and removing the need for redundant entry.

During Forrester's study, interviewees highlighted Paycom's ease of use, seamless workflows, and mobile accessibility as standout features. A director of HR in the entertainment industry shared, "The ROI for Paycom is definitely there, given the amount of time that we save by having one solution to manage versus having different integrations. This helps us from an HR-staffing perspective."

With Paycom, employees take greater ownership of their data through self-service tools like Beti®, an automated payroll solution, and its Employee Self-Service® software. Using the self-service app or desktop interface, employees can handle tasks such as enrolling in benefits, updating personal information, requesting time off, and approving their own timesheets.

As a result, HR teams recover valuable time for more strategic work. "The time savings have been absolutely huge," said a chief HR officer (CHRO) in the consumer goods sector. "Paycom has become not just a time-saver, but an employee enhancement tool."

Strategic Insights Through Better Analytics

One of the most powerful outcomes of using a unified HCM platform is the ability to access and analyze workforce data in real time. With Paycom's single database, organizations gained cleaner data and more actionable insights, helping leaders reduce overtime spending, better plan for hiring, and improve decision-making.

"The analytics provided with Paycom have really helped at the business-strategy level," the CHRO added. "They let us understand where our turnover is, where cost savings can be seen and where we should be investing more."

In fact, improved visibility alone drove $671,000 in value for the composite organization over three years. These analytics enabled use cases such as identifying high-turnover roles, optimizing hiring, and even discovering opportunities to apply for grants or launch bonus programs.

Time Savings That Add Up

Beyond HR, Paycom delivered time savings across the composite organization:

• HR saved over 4,300 hours annually due to streamlined workflows, automation, and centralized data.
• Managers saved more than 2,000 hours annually through tools like personnel action forms and streamlined employee review processes.
• Employees saved an average of one hour per month through intuitive self-service features, totaling 6,000 hours per year.

"We do our review process through Paycom," said the consumer goods CHRO. "It helps managers look back, have insight into their whole team and rate employees correctly. It has helped us become a 'best place to work.'" [LH1]

Disconnected Systems Come at a Cost

In a separate Forrester study of HR leaders nationwide, businesses reported using an average of 6.17 HCM providers. Eighty percent of respondents said fragmented or duplicate employee data made it harder to generate accurate workforce reports.

By contrast, the Forrester TEI study found that Paycom's single database delivers cleaner data and real-time analytics, potentially enabling business growth and cost savings.

Recognition for Innovation

This year's study builds on Paycom's previous TEI report, which focused on its GONE® feature for time-off requests. That tool alone earned a projected ROI of 821% and won Human Resource Executive magazine's Top HR Products award in 2024.

Together, these studies reinforce the power of Paycom's full solution automation. Whether through streamlining PTO workflows or delivering seamless data insights, Paycom's single platform helps employers free up time, reduce errors, and enhance the employee experience.