Paylocity has built a thriving business by targeting the mid-market sweet spot — companies with 20 to 5,000 employees that need sophisticated HR technology without enterprise-grade complexity. Founded in 1997 in Schaumburg, Illinois by Steve Sarowitz, the company provides cloud-based payroll, HR, time and labor management, and talent management solutions designed for organizations that have outgrown basic payroll services but don’t need the full weight of platforms like Workday.
What makes Paylocity distinctive is its emphasis on employee experience and social features. The platform includes community boards, peer recognition, surveys, and collaboration tools that go well beyond traditional HR software. These features turn the platform from something employees only touch on payday into a tool they actually use regularly. The company also offers video capabilities and learning management, reflecting its belief that modern HR technology should foster connection and development, not just process transactions.
Paylocity went public in 2014 and has consistently been one of the fastest-growing companies in the HCM space. The company serves approximately 36,000 clients and processes payroll for millions of employees. Its growth strategy leans heavily on a network of broker and referral partners who recommend Paylocity to their clients, supplemented by a direct sales force. Revenue has compounded at impressive rates as the company adds new modules and expands within its existing customer base. The mid-market HCM space remains fragmented, giving Paylocity plenty of room to keep growing.
