The time to modernise payroll systems is now

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All departments within businesses are having to digitally transform. HR management solutions are no different, and are increasingly migrating to cloud-based models which enable entirely new ways for managing employee data.

Sandra Crous, MD of PaySpace, a provider of payroll and HR management software, says many companies are unsure how to transition their business to the cloud and do not realise this can be done without major investments.

Firstly, she says there’s the question of real availability versus legacy availability. Solutions which were designed and built for the cloud enable users to process payroll and HR tasks in seconds and minutes as opposed to the hours and days often required by legacy hosted solutions.

Then, says Crous, there’s the question of being innovative versus maintaining the status quo. Legacy solutions were designed to meet the needs of the workloads from decades ago, and still do not have many of the key capabilities that cloud solutions offer, such as the automatic loading of weekly features and legislative updates, eliminating making back-ups, and keeping software up to date with no effort.

Another way in which she says cloud-based solutions trump legacy offerings every time is through future-proofing the payroll office.“What we are seeing these days, is that in an attempt to remain relevant, legacy providers are hosting their products to extend their shelf life and buy some time, but this results in solutions that are both difficult to maintain and frustrating for companies.”

Another point is the simplicity of cloud versus the complexity of legacy hosted solutions, adds Crous. Solutions that employ a ‘per employee’, ‘pay-as-you-use’ model, combined with scalable architecture are far more agile, and can get customers up and running in no time, and offer a good return on investment. Legacy solutions impose monthly upfront licensing fees, which is a hassle.

Crous says cloud solutions also offer powerful capabilities that outdated, legacy software simply can’t match, such as ISO27001 information security standard that provides GDPR and POPI compliance, intuitive workflows and guidance, and API integrations.

PaySpace rewrote its entire solution a few years ago to enable flexible cloud computing, and interface with as many endpoints or APIs as possible.

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