Fidelity has confirmed to PLANSPONSOR that “after a strategic review and decisionmaking process,” it has decided to exit the human resources (HR)/payroll business.

“Fidelity believes that working with outside experts rather than continuing to build and maintain an HR/payroll solution in-house will allow us to better meet the broad needs of our clients,” the company said.

The firm selected Paycor as a preferred payroll provider to which it will refer existing clients.

“As part of this transition, the firms will work closely together to provide seamless integration with Fidelity’s platforms to ensure clients have access to what they are familiar with today—a streamlined administration of a retirement program/401(k) and payroll,” Fidelity stated. The change will affect retirement plan recordkeeping clients that use a bundled solution.

Fidelity says Paycor is well-positioned to support Fidelity’s nearly 2,000 existing clients “with its full range of human capital management solutions, including payroll and benefit administration.”

“We are excited that Fidelity has selected Paycor as their preferred HR and payroll provider,” said Paycor CEO Raul Villar, “As part of this designation, we can offer Fidelity clients 360 retirement integration between Paycor and Fidelity. The integration will provide users with single sign on (SSO) to provide streamlined access from Fidelity NetBenefits to Paycor’s payroll suite. This end-to-end visibility and control of data provides a rich experience for both client administrators and their employees. Paycor has been serving business leaders for over 30 years, and we are thrilled to welcome Fidelity customers to our user community.”