Paychex vs Namely

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Our analysts compared Paychex vs Namely based on data from our 400+ point analysis of Payroll Software, user reviews and our own crowdsourced data from our free software selection platform.

Product Basics

Paychex provides payment processing, time-keeping and other general human resource software. They offer this to self-employed users, small businesses, medium business and large enterprise ventures. Buyers can choose from various pricing plans and payment options such as direct deposit, real-time transfers and same-day ACH. Most versions have some core HR management and pay processing functionalities.

Based in the cloud, it assists with hiring, onboarding, tax filing, benefits management, business insurance, startup services and more. Users can customize it to meet their specific needs, adding only what they use. This allows administrators to ensure it fits their requirements, whether they be simple or complex.
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Namely is a comprehensive software solution designed to streamline HR management tasks, making it particularly well-suited for mid-sized companies seeking to manage their workforce efficiently. This platform stands out for its ability to integrate core HR functions, payroll, benefits administration, and talent management into a single, user-friendly interface. One of the key benefits of Namely is its emphasis on improving employee engagement and compliance, offering tools that facilitate a better workplace culture. Its popular features, such as customizable HR workflows and robust reporting capabilities, allow businesses to tailor the software to their specific needs, enhancing operational efficiency. When compared to similar products, users often highlight Namely's intuitive design and responsive customer support as significant advantages. Pricing for Namely typically follows a per-employee-per-month model, which allows for scalability and flexibility in budget planning, making it a cost-effective choice for companies looking to invest in a comprehensive HR management solution.
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Product Insights

  • Reduce Errors: Ensure accuracy in payroll processing with the help of a variety of safeguard features, such as sending managers notifications when the system detects potential issues so that these problems are avoided entirely.
  • User Support: Access 24/7 online support to assist with all aspects of processing, and the option for a dedicated specialist that can act as a personal support expert for both payment and tax needs.
  • Convenience: The mobile app enables employers and employees to access the system from any device. By leveraging the cloud, they can start work on a desktop and pick up right where they left off directly from their mobile device, allowing them to complete core tasks from anywhere.
  • Informed Employees: Employees can get information about their time off, upcoming paychecks, benefits information or retirement funds. This saves time from HR and accounting by answering their more pressing questions while also building transparency and trust in the entire process.
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  • Save Time: Automatically perform common actions, such as approving promotions or pay raises, with workflows. Eliminate the need to assign new users every time an employee leaves or changes positions via role-based approvals assigned to titles rather than individual employees. 
  • Organize Workflows: Create different workflows for different departments, teams and additional groups at company. 
  • Keep Everyone Informed: Stay updated on the latest company news with a central news feed that supports uploading images, GIFs and videos. 
  • Configure Employee Profiles: Choose which fields to include when setting up employee profiles. 
  • Build Org Charts: Set up org charts that show the relationship of every worker. Supports teams of any size, along with multiple leaders. Automatically updates when new hires join, using the relationships stored in the employee database. 
  • Track Events: Stay on top of important dates like holidays, legal deadlines and other events, as the calendar feature has critical dates already included. Download it as an ICS file to sync with an online calendar. Also includes monthly resources and tips on HR topics. 
  • Control Access: Manage access controls for data by assigning user roles and setting permissions so everyone can access the information they need without compromising sensitive data. 
  • Plug In Apps: Integrate with over 50 partner apps from eSignature and international payroll to office management and HR outsourcing. Includes TSheets, Litmos, OneLogin, G Suite, Adobe, Jobvite and Ameriflex. 
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  • Products: It has many different products for different applications. Here are the most important:
    • Payroll: The platform offers payment for businesses with one employee, under 10 employees, from 10-49 employees and from 50 to over 1,000 workers. This includes online payroll, taxes, deductions and many tools to generate reports and look at costs.
    • Time and Attendance: The online time and attendance function ties in directly to payroll, saving time when trying to calculate paychecks. In addition to the software, it also offers TrueShift physical time clocks and the InVision iris recognition clocks. Users can track team activity in real time through the manager’s dashboard, and allow employees to record time, approve timecards and check schedules through the employee dashboard.
    • HR: It has a range of HR services and software including employee development, hiring, records administration, compliance, benefits administration, learning management and more.
      • Professional Employer Organization: This is a full-service HR consulting program that helps organizations with liability issues, daily worker problems, risk management, benefits administration and other related issues.
      • Hiring Service: The software can make the hiring process easier with applicant tracking, screening, recruiting and onboarding capabilities. Please note, they don’t have employee leasing, temp staffing or contract staff services.
      • Employee Benefits: Managers and workers alike can get access to health insurance for groups or individuals, financial wellness and retirement planning.
    • Business Insurance: Users can get property and casualty insurance with the help of agents who assist in the selection and implementation process for the new benefits. This includes business owner policies, cyber liability and workers’ compensation.
    • Finances and Payments: Besides payroll, this program also has business loans, expense management, tax administration and processing for payments.
    • Startup Solutions: For new businesses, it offers guides, consulting, advice and more for multiple aspects of the process. They give aid with marketing, the incorporation process, business management and access to free online tools.
  • Payroll and Tax Filing: Process payroll and automatically calculate taxes. Paychex can calculate, file and pay taxes at the federal, state and local level automatically. The platform can calculate hours, doing setup for direct deposit and setting hours per pay period.
  • General Ledger: Synchronize payroll data with integrations offered by Paychex. The system is compatible with a variety of popular accounting systems, including QuickBooks Online and Xero.
  • Reporting and Analytics: Generate custom analytics and reports or choose from over 160 customizable templates to track and visualize relevant data.
  • Learning and Development: Employees can take advantage of online courses to stay educated on relevant topics. Not only does this increase productivity, but it makes employees feel more invested in.
  • Core HR: It gives employee feedback, manages employee training and tracks important documents through the system’s interface.
  • Onboarding: Applicants and new hires can complete new hire documents, such as tax forms, and set up direct deposit directly through the platform.
  • Paycheck Protection Program: Introduced by the CARES Act as a measure for economic stability during the COVID pandemic, the Paycheck Protection Program loans encourage small businesses to keep or rehire workers that have been furloughed. This system offers a quick way to apply for this loan.
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  • Payroll: Includes:
    • Regulatory compliance, employee access, prebuilt reports, and automatic generation and filing of 1094s and 1095s for ACA.
    • Benefits deduction calculations, so payroll numbers are always updated.
    • Automatic syncing with all HR data.
    • End-of-year reporting like W-2s and 1099s, including tax filing.
  • Time and Attendance: Enables:
    • Data transfer to the payroll module for accurate processing, with options for online time tracking. Offers physical clocks equipped with punch-in methods such as PIN, fingerprint and ID card.
    • Data summary views surrounding hourly workers with the admin dashboard, which shows and uses reports to drill into greater detail on different metrics.
    • Scheduling, managing overtime and performing mass editing actions.
  • Talent Management: Provides onboarding capabilities, eSignature, custom performance reviews, task tracking, configurable employee surveys, goal management, customizable automated review cycles and more. 
  • Benefits Administration: Includes health insurance, FSA and HSA options, life and disability insurance, 401(k), wellness programs, and more. Additional insurance coverage for pets and identity theft available as well. Namely Exchange automatically sends employee elections to Cigna. 
  • HR Analytics: Contains:
    • Metrics on diversity using factors like gender and age.
    • Pay gap analyses for gender and ethnicity, sorted by job level, department and other criteria.
    • Dashboard with KPIs such as trends for headcount, time off and attrition.
    • Custom reports to gain deeper insights and compare performance against industry benchmarks.
  • Mobile App: Available for iOS and Android, with geo-fencing for time management. Employees can request time off, while managers can receive notifications and view team PTO. 
  • Open API: Enables Namely to act as a system of record and facilitates single sign-on. Import data from other platforms, such as an applicant tracking system, learning management system or ERP. 
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Product Ranking

#4

among all
Payroll Software

#18

among all
Payroll Software

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Analyst Rating Summary

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Dashboard and Reporting
Expense Management
Platform Capabilities
Security and Compliance
Benefits Management
Dashboard and Reporting
Platform Capabilities
Security and Compliance
Payroll and Tax Management
Benefits Management

Analyst Ratings for Functional Requirements Customize This Data Customize This Data

Paychex
Namely
+ Add Product + Add Product
Benefits Management Dashboard And Reporting Expense Management Mobile Capabilities Payroll And Tax Management Platform Capabilities Security And Compliance Time And Attendance Management 94 100 100 81 90 100 100 91 94 100 60 67 95 100 100 91 0 25 50 75 100
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Analyst Ratings for Technical Requirements Customize This Data Customize This Data

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User Sentiment Summary

Great User Sentiment 2800 reviews
Great User Sentiment 1299 reviews
83%
of users recommend this product

Paychex has a 'great' User Satisfaction Rating of 83% when considering 2800 user reviews from 4 recognized software review sites.

81%
of users recommend this product

Namely has a 'great' User Satisfaction Rating of 81% when considering 1299 user reviews from 6 recognized software review sites.

4.5 (24)
4.8 (12)
4.2 (1342)
3.9 (247)
n/a
4.16 (411)
4.1 (1122)
n/a
n/a
4.2 (407)
n/a
4.3 (30)
3.9 (312)
3.7 (192)

Awards

SelectHub research analysts have evaluated Paychex and concluded it deserves the award for the Best Overall Payroll Software available today and earns best-in-class honors for Expense Management and Platform Capabilities.

Analysts' Pick Award
Expense Management Award
Platform Capabilities Award

SelectHub research analysts have evaluated Namely and concluded it earns best-in-class honors for Platform Capabilities.

Platform Capabilities Award

Synopsis of User Ratings and Reviews

User-Friendly UI: A total of 80% of reviewers who mentioned the UI felt it easy to use.
Price Within Budget: Around 50% of reviewers that mentioned price were satisfied with the pricing structure and found that the system was worth it.
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Role-Based Access: Available with a single click, this feature allows users to view, add and update information anytime, according to 100% of reviews mentioning it.
Customization: It’s possible to customize almost all functions and operations, as noted by all reviews of customization.
User-Friendly: As per 80% reviews on this element, a user-friendly interface makes navigation easy.
Regular Updates: All reviews on updates indicated that Namely releases updates regularly to improve its functions and capabilities.
Comprehensive Solutions: All users referring to this aspect appreciated the end-to-end HCM capabilities for HR, payroll and benefits.
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Late Submissions and Missed Deadlines: Around 80% of reviewers that mentioned taxes ran into issues, with around 70% saying they had to pay penalties as a result.
Terrible Customer Service: Clients complained that the customer service was rude, unqualified, ill-informed, unhelpful and had high turnover in almost 70% of reviews that mentioned customer service.
Broken Features: Over 50% of reviews that mentioned the features said they were left wanting. The most common issues were communication problems. Just under 20% of all reviewers complained about errors made by either the solution or the staff.
Late Cancellations: Around 20% of reviewers that discussed price complained that they had canceled the program, but it had kept taking money out of their account.
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Time and Attendance: Adding manual data in the timesheets and attendance manager is a tedious task, according to 100% of reviews on this feature.
Customer Support: All reviews on this element indicated that support is slow and unresponsive.
Integration: There’s a lack of integration and communication between the payroll and HRIS modules, according to all reviews on integration.
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Paychex incorporates a range of different solutions and is used widely by small, medium and large-sized companies. While around 40% of users were happy with the functionality of the system, the majority expressed dissatisfaction with its tax capabilities, pricing and customer service. Many described it as dishonest and complained especially that they were oversold on its capabilities and that the salespeople used pushy tactics to try and upsell them. Other complaints of the system included making errors, overpaying employees or even miscalculating taxes resulting in serious penalties. Current and former clients greatly disliked the service. The UI was the most positively reviewed element of the platform with around 80% expressing satisfaction with the design and navigation. Around 50% were happy with the pricing structure and a minority of around 30% of users said they had positive experiences with some select customer service members. This disparity in experiences may be in part to the high turnover rate in representatives which is mentioned many times during the reviews. This solution could be appropriate for small and medium-sized businesses. It supports larger enterprises, but buyers should make sure it has the necessary functionality before purchasing.

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Navigating the realm of HR software can feel like searching for a needle in a haystack, but Namely consistently emerges as a top contender, especially for mid-sized businesses. Users frequently highlight its user-friendly interface, affordability, and comprehensive features as standout qualities. Reviews often mention the intuitive design and ease of navigation, making it accessible even for those without extensive HR experience. The platform's affordability, without compromising on essential features, is another recurring theme in user feedback. Namely's wide range of features, encompassing payroll, benefits administration, talent management, and compliance tools, further solidifies its position as a versatile and valuable solution. When compared to competitors like Deluxe, Namely's broader scope of features becomes evident. While Deluxe primarily focuses on payroll processing, Namely offers a more holistic approach to HR management. This distinction is crucial for businesses seeking a comprehensive solution that extends beyond basic payroll functions. Namely's emphasis on employee engagement and its intuitive self-service portal are also differentiating factors that resonate with users. The platform empowers employees to manage their own information, benefits, and time-off requests, fostering a sense of ownership and streamlining HR processes. Considering its strengths and weaknesses, Namely appears to be an ideal fit for mid-sized businesses with 25 to 1,000 employees. Its scalability, comprehensive features, and focus on employee experience cater specifically to the needs of growing companies. Namely's ability to streamline HR processes, improve efficiency, and enhance employee engagement makes it a valuable asset for businesses looking to optimize their HR operations and cultivate a positive work environment.

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