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 benefits administration.”