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June 6, 2024
XX min read

Freshteam vs Paylocity


In the ever-evolving realm of human resources, choosing the right software can make a world of difference. Freshteam and Paylocity are both prominent HRIS tools designed to streamline HR functions, but they cater to different needs and business sizes. 

Freshteam is the smart HR software for growing businesses. With Freshteam, you can attract, hire, and onboard new hires, manage employee information, and oversee time off, all in one place. Freshteam's capabilities include sourcing talent through a customizable career site, integration with various job boards and social media channels, and facilitating seamless collaboration between recruiters and hiring managers.

Paylocity offers a comprehensive product suite delivering a unified platform for professionals to make strategic decisions in benefits, core HR, payroll, talent, and workforce management. Paylocity aims to cultivate a modern workplace and improve employee engagement through its holistic HR solutions.

Comparing these HRIS tools is crucial for businesses to identify which best aligns with their specific HR needs, size, and strategic goals.

Freshteam Overview

Key Features

  • Applicant Tracking System (ATS): A robust ATS that allows for sourcing candidates through job boards, career sites, and social media channels.
  • Onboarding: Streamlines the onboarding process, enabling forms to be filled, documents to be signed, and handbooks to be handed out even before the new hire's start date.
  • Employee Information Management: Maintains comprehensive employee profiles and an employee directory. Permissions for accessing employee information and documents can be managed effectively.
  • Time Off Management: Tracks employee time off, allowing the HR team to manage and approve requests with ease.
  • Collaboration Tools: Facilitates easy collaboration between recruiters and hiring managers, including note sharing and feedback mechanisms.

Paylocity Overview

Key Features

  • Core HR: Manages essential HR functions, including employee information, document management, and HR compliance.
  • Payroll Management: Handles all aspects of payroll processing, including tax calculations, direct deposits, and generating payroll reports.
  • Benefits Administration: Provides a comprehensive solution for managing employee benefits and enrollment processes.
  • Talent Management: Combines recruitment, performance management, and learning management to help businesses attract and retain top talent.
  • Workforce Management: Includes time tracking, scheduling, and labor cost management tools.
  • Employee Engagement: Cultivates a modern workplace with tools for employee engagement, surveys, and feedback.


Freshteam and Paylocity both focus on simplifying HR operations and improving efficiency. They offer robust recruitment solutions, facilitating end-to-end talent acquisition processes. Additionally, both tools enable effective management of employee information and provide essential features for onboarding new hires. Collaboration is a significant element in both systems, allowing HR teams to work together seamlessly regardless of geographic location.


While Freshteam is oriented towards growing businesses needing a well-rounded HR tool with strong recruitment and onboarding capabilities, Paylocity provides a more comprehensive suite encompassing payroll, benefits administration, and workforce management. 

Freshteam excels in attracting and hiring talent with its vast ATS capabilities and social media integrations, whereas Paylocity’s strength lies in its robust payroll and benefits management functions. Additionally, Paylocity’s workforce management tools offer advanced scheduling and labor cost management, which are not prominent in Freshteam.

Pros and Cons



  • Intuitive user interface.
  • Strong ATS with multiple sourcing channels.
  • Effective onboarding tools.
  • Cost-effective for growing businesses.
  • Collaboration features that enhance recruiter-hiring manager interactions.


  • Lacks advanced payroll functionalities.
  • Limited benefits administration capabilities.
  • Might not scale well for very large enterprises.



  • Comprehensive HR suite covering payroll, benefits, and workforce management.
  • Strong payroll and tax calculation features.
  • Advanced employee engagement tools.
  • Scalable for businesses of various sizes.
  • Interactive employee self-service portal.


  • Steeper learning curve.
  • Higher price point compared to Freshteam.
  • Overwhelming for small businesses needing more straightforward solutions.

Use Cases


  • Ideal for small to medium-sized businesses focusing on talent acquisition and onboarding.
  • Suitable for companies looking for cost-effective HR solutions with robust ATS capabilities.
  • Perfect for teams that value collaboration between recruiters and hiring managers.


  • Well-suited for medium to large enterprises requiring a comprehensive HR back office with payroll, benefits, and workforce management.
  • Excellent for businesses that need robust payroll and tax management.
  • Ideal for companies prioritizing employee engagement and communication tools.


Both Freshteam and Paylocity offer valuable features tailored to address various aspects of HR management, but they cater to different business needs and sizes. Freshteam stands out with its strong recruitment and onboarding features, making it a great fit for growing businesses focused on talent acquisition. Paylocity, on the other hand, provides a holistic HR suite ideal for medium to large enterprises requiring advanced payroll, benefits, and workforce management tools.

When choosing between Freshteam and Paylocity, consider your business's specific needs, size, and strategic goals. If your primary focus is talent acquisition and onboarding at a cost-effective rate, Freshteam is likely the better option. However, if you need a comprehensive HR platform that includes payroll, benefits, and workforce management along with advanced employee engagement tools, Paylocity would be the ideal choice.

Key takeaways 🔑🥡🍕

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