Paylocity’s new AI features

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SCHAUMBURG, Ill. — Paylocity (NASDAQ: PCTY), a leading provider of cloud-based HR and payroll software solutions, today announced its latest series of new AI features designed to streamline HR processes and deliver more personalized, modern employee experiences. Building upon its track record of innovation, the company is introducing AI-driven optimized workforce schedules and personalized learning plans, as well as multiple instances of intelligent recommendations. The new AI features announced today—and already in use by early adopters—reflect Paylocity’s long-standing commitment to outcome-focused design principles at the core of modern workforce transformation.

An AI Strategy Built with Business Outcomes in Mind
Paylocity’s AI strategy goes beyond mere Generative AI to include a multipronged approach that focuses on enhancing business efficiency, delivering actionable insights, and improving the user experience.

“The driving force behind our AI approach at Paylocity is, and always has been, the business value it delivers to our clients, with the ultimate goal of enhancing the success and well-being of businesses and employees alike,” said Steve Beauchamp, Co-CEO of Paylocity. “Our AI strategy ensures that our advancements contribute meaningfully to the industry, empowering professionals to navigate the future of work with confidence and purpose.”

AI-Driven Schedule Optimization to Meet the Needs of Employees and Businesses Alike
Launched last year, Paylocity Advanced Scheduling already incorporated AI to reduce unplanned overtime costs, ensure appropriate role-based shift coverage, and minimize no-show rates. Today, Paylocity announces AI-powered shift scheduling, which intelligently recommends and optimizes employee schedules to streamline the scheduling process and take both organizational needs and employee preferences into account.

Early adopter clients using AI-driven shift scheduling have seen an 80% adoption rate for shift-scheduling recommendations, enabling managers to make informed scheduling decisions faster and with more confidence, based on factors such as employee availability and preferences.

AI-Led Learning Recommendations to Aid Employee Development and Career Paths
As organizations aim to differentiate their culture through continuous training, Paylocity has continued to improve its acclaimed Learning Management System (LMS) by introducing AI-driven recommendations, which not only enhance the learning experience, but also ensure that training aligns with individual career goals.

Early adopters report a 63% success rate, with AI-driven recommendations resulting in actual course enrollments and enabling employees to tailor their professional development journey to their career goals.

AI-Powered Recommendations Build on Generative AI to Increase Employee Engagement
Paylocity was the first HCM vendor to embed Generative AI into its platform and has since rolled out multiple Generative AI capabilities. Today, Paylocity announces new personalized recommendation features across multiple products, including Recognition & Rewards, Employee Voice, and Community, Paylocity’s online collaboration hub.

Recognition & Rewards is a newer product that automates recognition of important moments, such as birthdays and anniversaries, and allows customization for rewards programs. Today, Paylocity announces a new “Recognitions to Give” feature, which uses AI to suggest relevant opportunities for users to acknowledge and celebrate their peers’ accomplishments. Early adopters are already seeing impactful results, including a significant 20% increase in peer-to-peer recognitions originating from AI recommendations. 

Employee Voice is another newer product that leverages AI to go beyond traditional surveys by helping organizations continuously collect and analyze feedback, transparently share insights, and then strategically act to improve employee engagement and retention. Employee Voice delves into employee sentiment to translate survey data into statistically validated engagement scores and tailored recommendations to improve employee engagement at either the individual team or companywide level. The score and action plans are easily accessible on an interactive dashboard alongside deeper category analysis.

Community now includes “People to Follow” and “Groups to Create” recommendations. Early adopter clients leveraging the “People to Follow” feature have reported a 50% increase in follows, while those using the “Groups to Create” feature note that 25% of successful groups in Community now originate from AI recommendations.

“One of Paylocity’s strengths is its AI-powered, mobile-first platform, which helps its clients optimize business performance,” said DeeAnna Warrington, Principal Industry Analyst – HR Technology and Services at NelsonHall, an independent research and advisory firm. “In today’s fast-evolving workplace, where workforce dynamics are more complex than ever, AI is not just a tool but a strategic imperative. The industry is at an inflection point, with AI having the potential to drive the next wave of HCM transformation. Paylocity understands this and is beginning to deliver on the promise of AI.”

Paylocity is hosting an upcoming webinar on February 21, dedicated to helping HR leaders navigate the AI landscape. Register here.

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