Once upon a time, customisation software was once the only option to ensure deep business alignment, but now cloud-native payroll platforms offer a powerful and flexible alternative.
The reality today is that siloed and ‘locked-in’ traditional payroll systems and departments no longer align with modern integrated and data-conscious businesses. Furthermore, layers of granular software customisations limit the agility of payroll software, creating lock-in where there should be scale and choice.
However, conventional wisdom holds that one needs to customise payroll systems to get the most out of them. Is this still true, or is there a more flexible alternative?
What are the problems with customisation?
Organisations often depend on customised software to match internal processes and workflows. But this approach is not ideal, as customisation needs extensive development and coding that permanently alters software. Even if the customisations are minor, they still require skilled developers to implement the changes. Those changes can often lead to other effects that need to be addressed, leading to more development time and costs for your business.
Even if the customisation was effortless and flawless, it has a shelf life, and at some point, updates to the core product will require changes to the customisation. The problem lies that if the people responsible for the customisation choose to leave the organisation, they can take that knowledge with them, making it challenging to affect changes in the future. So, when your business wants to change software providers, it must then customise everything from scratch.
It is therefore not surprising that many organisations choose to keep such a system going long after it’s become outdated. This phenomenon is called ‘lock-in’. They just cross their fingers and hope nothing big will change. However, we all know that change is crucial for today’s companies. Shifting marketplaces, faster competition, digital risks, and modern business tools prompt organisations to adapt their software accordingly. We see this dynamic when it comes to payroll software.
For example, KPMG has identified several trends pushing payroll modernisation, such as better employee experiences, complex workforce compliance, accessing global markets, evolving payment options and structures, and the imperative to embrace cloud technology, artificial intelligence, and data.
Thus, the more your payroll system is customised, the harder it will be for you to adapt to such demands and opportunities. But there is an alternative and that is: configure the payroll software.
Why payroll configuration is the better option
Configuration used to be a very limited and superficial option and wasn’t considered a valid alternative to customisation. Yet, cloud-native platforms are changing how organisations can alter software.Â
Clyde van Wyk, Director and Co-founder at PaySpace reminds us that:
“Cloud-native software platforms do things differently. They are modular, making it easier to change specific parts without affecting the overall system. Ownership also works differently. Previously, companies had to buy and own the software they wanted to alter. Now, they can make massive configuration changes without owning any part of the software, so the financial risks are much lower.”
Cloud-native software platforms operate from a single entity that serves multiple tenants, each receiving a unique instance of the software. To accommodate customisation needs, platforms provide in-depth configuration options, leveraging modern software concepts to make extensive alterations without harming the integrity of the central system. Examples include changing user interfaces, creating customised and ad-hoc reports, automating elaborate processes, integrating other business systems, and processing different data sources.
This approach avoids lock-in. When the software updates, the configuration carries over unaltered (or is quick to update if changes are needed). Configuration rarely requires developers to make changes—that power now resides with the business professionals using the software. If there is a requirement for developer-specific alterations, these can be modular and easy to migrate.
Why Configuring your payroll is the new customisation
Is it better to configure your payroll software and avoid the costs, risks, and lock-in of customisation? When using a cloud-native payroll platform, the answer is yes. Such platforms offer more scale, flexibility, and direct control without development overheads, hefty upfront investments, or delayed changes. They also provide robust and fast integration, excellent employee self-service, calculation automation, universal data standards, and push updates for new features and employment regulations.
Now it’s easier and better to configure instead of customising. Even if there is some customisation, it is limited and easy to graduate into built-in features, but without the technical lock-in or ongoing costs. Thanks to cloud-native software, your company almost never has to rely on customisation again.
Get in touch with PaySpace today to find out how we can help you to configure your payroll.Â
