Nucleus assessed HCM vendors designed to support small and midsized businesses (SMBs) and their unique HR challenges. With smaller HR teams expected to manage more work with fewer in-house resources, vendor support and partnership is critical in achieving efficient time to value and ensuring customers can maximize the returns on their investment. AI-powered automation, a feature once reserved for enterprise use cases, has now permeated the SMB HCM market and continues to grow in scope, enabling organizations to reduce time spent on repetitive, manual tasks.
“Over the past few years, SMB-focused HCM solutions have matured in tandem with their customers,” said Research Manager Evelyn McMullen. “We see market leaders offering more advanced capabilities to match the evolving requirements, including Generative AI-powered digital assistants and AI-powered insights to drive better decision-making.”
As vendors invest in building out their suites, providers that previously solely relied on API marketplaces and partnerships to fill functionality gaps have expanded offerings through native development and acquisition. As the complexity of these solutions grow, customer support and success resources continue to be crucial to the success of an SMB HCM deployment, not just in terms of configuring a system to current needs but ensuring that the setup drives increased value over time.
Leaders in this year’s Value Matrix deliver advanced functionality without sacrificing ease-of-use at scale. These include ADP Workforce Now, HiBob, isolved, Paycor, Paylocity, and UKG Ready.
The Experts in this year’s Value Matrix are organizations that deliver value to customers with complex use cases through deep functionality and industry-specific capabilities. These include BambooHR, Namely, and Rippling.
Accelerators in this year’s Value Matrix deliver value through greater ease of use and quick implementation. These include GoCo, Gusto, Paychex, Paycom, and Unit4.
Core Providers deliver core capabilities with faster and less expensive adoption. This year’s Value Matrix Core Providers are ADP RUN, Personio, PrimePay, and Sage.
To download the full 2025 SMB HCM Technology Value Matrix, click here.
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