Lattice Is Sunsetting Its HRIS and Payroll Products: What This Means for HR Technology (And Where Customers Are Likely to Go Next)

In late 2025, customers began reporting that Lattice had quietly announced plans to sunset its HRIS and Payroll products by July 2026. For many HR teams, the news was unexpected. Only months prior, Lattice had been promoting strong HRIS adoption numbers and positioning itself as a full-suite people platform.

The announcement raises a bigger question for the HR technology market:
What caused a beloved performance-management company to retreat from one of the most competitive—and unforgiving—categories in HR tech?

More importantly, what should current Lattice HRIS customers do now?

This article breaks down what happened, what it signals for the HRIS market, and why many displaced organizations will likely migrate toward BambooHR or HiBob—platforms with far deeper roots in operational HR.

What Happened: Lattice’s HRIS and Payroll Retreat

Lattice entered the HRIS market with significant brand momentum. It was already trusted for performance management, engagement, and employee development. Extending the platform into core HR seemed logical on paper.

But the product shipped with foundational gaps:

• No payroll at launch
• No timekeeping
• No benefits administration
• No ATS
• Limited compliance infrastructure
• Minimal global-readiness
• Shallow workforce-administration depth

Core HR isn’t a feature bundle. It’s infrastructure.

Even after payroll was added, it lacked the maturity buyers expected. HR teams already using BambooHR, HiBob, Rippling, or Paylocity had little incentive to abandon proven systems for a product still finding its footing.

Ultimately, Lattice discovered what most HR tech founders learn the hard way:
Performance management and core HR require radically different operational DNA.

Lattice’s retreat is not a failure of vision—it’s a recognition of where the company’s strengths truly lie.

Why Entering the HRIS Market Is So Difficult

Payroll is a moat, not a module

Payroll requires:

• Constant jurisdiction-specific tax updates
• Automated filings and remittances
• Accurate time integrations
• Error-proof workflows
• Near-100% uptime
• Support scaling

As we see it, only a handful of vendors have ever built payroll well—and most took a decade to do it.

HRIS replacement cycles are slow

Most companies replace their HRIS every 5–7 years. They move only when:

• Compliance risk increases
• Payroll becomes unreliable
• Data integrity is compromised
• Operational workloads become unmanageable

Very few companies switch solely for design or UI.

Modern HR teams expect end-to-end operational depth

Not aesthetic polish. Not lightweight workflows. But:

• PTO, time, and attendance
• Payroll or payroll-grade integrations
• Benefits enrollment and deductions
• Built-in compliance workflows
• Accurate employee data structures
• Analytics and standardized reporting
• Mobile access for employees

In our view, Lattice entered the market without most of these.

How Lattice’s Exit Shifts the HR Tech Landscape

1. A return to “best-in-class + integrated ecosystems”

HR teams are once again prioritizing fit over suite consolidation.
Performance and engagement remain their own domain.
Core HR remains its own domain.
Teams will increasingly assemble stacks instead of assuming one vendor can do it all.

2. Market consolidation favors established HRIS vendors

Vendors with operational maturity—especially in payroll and compliance—are positioned to absorb Lattice HRIS customers.
This includes:

• BambooHR
• HiBob
• Rippling
• Paylocity
• Gusto (for payroll-focused SMBs)

3. A cautionary tale for HR tech founders

Horizontal expansion is expensive.
UI is not infrastructure.
Brand momentum cannot replace compliance competency.
Core HR takes years to build well.

Based on the reports, Lattice made a bold strategic decision—and the industry is paying attention.

What Lattice HRIS Customers Should Do Now

A July 2026 sunset gives organizations time to migrate carefully. The key steps:

Step 1: Identify which systems are impacted

Most customers used Lattice HRIS for:

• Employee records
• PTO & time
• Basic reporting
• Workflows
• Possibly payroll

Step 2: Determine your source of truth

If Lattice owned all core employee data, then data migration planning should begin immediately.

Step 3: Clarify your future HR operating model

Do you need:

• A full-suite HRIS with payroll?
• A global system of record?
• Modular tools?
• A simple, U.S.-centric HRIS?
• Deep performance + compensation?

Once this is clear, the shortlist becomes obvious.

Migration Archetypes: Where Companies Typically Move After Lattice HRIS

Based on market patterns and HRIS evaluation criteria, we see two dominant migration paths—one toward BambooHR and one toward HiBob.

These are not sales-driven patterns.
They’re operational-fit patterns.

Why Many SMBs Migrate to BambooHR

Best for: 25–500 employees, U.S.-centric, SMBs that need a stable HR core.

BambooHR is often the most natural transition for Lattice HRIS customers because it delivers the operational foundations Lattice lacked:

✔ Strong employee data management

A complete HR data hub with secure employee records, workflows, approvals, and custom access levels.

✔ Mature PTO, time tracking, and benefits workflows

• Automated PTO
• Time tracking with overtime calculation
• Benefits tracking and employee self-service
  

✔ Reliable U.S. payroll with tax filing

This is a major differentiator.
BambooHR payroll includes federal and state tax filing, a single source of truth for pay data, and streamlined workflows.

✔ Simple implementation and strong support

SMBs appreciate BambooHR’s predictable setup and responsive customer service.

✔ Flexible ATS and onboarding

Pre-boarding, e-signatures, ATS, and mobile hiring app — another area where Lattice lagged.

In short:
If Lattice customers want a clean, reliable, scalable HR foundation without unnecessary complexity, BambooHR fits naturally.

Why Many Scaling or Global Companies Migrate to HiBob

Best for: 100–5,000 employees, high-growth, global, distributed teams.

HiBob has become the go-to HRIS for companies that need more depth than the typical SMB-focused HRIS can provide.

✔ Global-first HR architecture

Multi-country support, localized fields, multi-currency compensation, and global payroll hubs.

✔ Deep and configurable workflows

Task automation, approvals, custom fields, forms, role-based access, and lifecycle workflows.

✔ Culture-building features

Kudos, Shoutouts, Clubs, social-style homepage, and engagement tools.

✔ Advanced performance + compensation

360 reviews, 1:1s, goals, talent planning, global comp cycles, and benchmarking.

✔ Powerful analytics and workforce planning

Scenario modeling, dashboards, finance alignment tools.

The bottom line:
HiBob is ideal for teams that want both operational depth and culture-focused design.

BambooHR vs. HiBob: Which One Fits Your Organization?

Here’s a simple breakdown:

Company Type	Best Fit	Why
U.S.-based SMB (25–500 employees)	BambooHR	Easy to use, simple payroll, strong HR data fundamentals
Scaling, multinational (100–5,000 employees)	HiBob	Global-first design, advanced workflows, analytics
Teams needing basic payroll quickly	BambooHR	Faster payroll setup + integrated PTO/time
Teams needing advanced performance + comp cycles	HiBob	Deep talent + compensation modules
Companies that loved Lattice’s UX	Both	Both platforms deliver modern, intuitive interfaces

The Bigger Lesson: HRIS Success Depends on Operational Foundations

Lattice’s decision is a reminder:

• HRIS is infrastructure
• Payroll is a moat
• Compliance cannot be rushed
• Data accuracy and workflows matter more than UI
• HR buyers expect maturity, not feature checklists

Vendors who succeed in HRIS do so because they invest deeply in:

• Data structures
• Reporting
• Security
• Compliance
• Global readiness
• Workflow automation
• Payroll reliability
• Integration ecosystems

This is why BambooHR and HiBob have remained category leaders.

Final Recommendations for Lattice HRIS Customers

Before choosing a replacement, ask:

1. What operational problems must the new system solve?

Payroll? Data accuracy? Workflows? Global complexity?

2. What HR model is right for your organization?

Simple HRIS? Global HRIS? Full-suite? Modular?

3. What will you need 12–36 months from now?

The best HRIS fits your future state, not your present state.

Explore Your Options in the HR Technology Launch Hub

If you’re evaluating alternatives to Lattice HRIS, the HR Technology Launch Hub includes:

• Vendor comparison worksheets
• Platform shortlists
• HRIS RFP templates
• Implementation plans
• Migration checklists
• HR Tech Readiness Quiz
• Detailed BambooHR and HiBob feature breakdowns

👉 Explore the HR Technology Launch Hub