Is Your Payroll Management Software Outdated

Payroll management can be a hassle to deal with if your payroll management software is outdated. Not only will your company be missing out on several of the latest automation features available in more modern software applications, but there is a high chance that the software will also be sluggish.

Is Your Payroll Management Software Outdated?

Every piece of software comes with a lifespan and as they come closer to the end of their lifespan, software applications gradually tend to slow down, develop bugs, and lose efficiency. Older software also becomes more vulnerable to malware attacks as their dated infrastructure cannot always be patched properly against the latest threats.

The bottom-line is that there is no upside to using outdated payroll management software solutions, but how do you know that your current software is indeed at its life’s end? Even if it is time to look for other options, what exactly is the best option? Stay with us as we answer those questions next.

Growing Sluggishness

Even brand-new software solutions can feel more sluggish than their much older competition sometimes because good software, kept up to date by a quality provider, is likely to outperform buggy new releases. However, you don’t need to compare your current payroll process management software with a new iteration to notice a slowed down system.

If a PRM software is past its prime, it will take significantly more time to complete tasks than it did before. Once the difference between the application’s prior and present speed becomes significant, the same will be reflected on the company’s payroll process as lost productivity.

See also  Implementing an Avaya Cloud System in Your Organization

This can be a result of increased workload, or the software simply being too outdated to keep up with the constantly changing digital protocols, formats, security measures and more. Consider taking steps well before the slow system becomes a real productivity bottleneck on paydays.

Inadequate Feature Set

Our expectations from a PRM system bought a decade ago should not be the same in 2021. Even if your payroll management system is not facing any significant issues at the time, it doesn’t mean that your system doesn’t need an upgrade. To understand the situation, consider a business that’s still using pen and paper to document and regulate their payroll processing. If they are small enough, the company may not even realize that they are simply sitting in stagnancy for years, instead of being able to promote any form of sustainable growth.

Similarly, working with an outdated system could be halting your company’s growth potentials, without anyone ever realizing it. A modern PRM solution should be able to handle tasks such as time tracking, wage calculation, overtime calculation, applicable deductions and benefits calculation, reimbursement calculation, pay stub generation, tax calculation, e-filing of taxes, and much more. If your current system is unable to offer similar services in a reliable manner, it’s outdated.

Lacking Automation Features

Even if your payroll management system is unable to deliver the best of what modern automation has to offer in the department, there are some standard features which must be there today. For example, automatically generated tax invoices, paychecks, and bills are much less likely to be erroneous, which saves time, effort, reputation, and money.


It minimizes the necessity for human input when it comes to repetitive but time-consuming work. This, in turn, allows workers to better utilize their time doing something productive which requires a human touch. In the meanwhile, a smart payroll admin software minimizes any chances of human error from becoming a major expense for the company. If the current system lacks automation features like these, take it as a sign of its age.

Frequent Security Issues

Both old and new software can be vulnerable to malware attacks, but they are not equally vulnerable. The more time cybercriminals have with a software, the closer they can get to cracking it. This can be prevented successfully by releasing regular patches, which is what all good OEMs do nowadays. However, patching up the old codes become increasingly complex with time, while cracking through the security gaps becomes easier for the other side. If it has been a while and the vendor is not shipping out updates as frequently as it used to anymore, take it as a sign that your company should prepare to upgrade soon.

End of Life/Support

End of support, End of Life (EOL) is the most prominent sign that it really is time to change and move on to a newer payroll management system. Even the best software solutions provider in the world can only support a system for so long. When the OEM’s original support period (variable) is over, they may offer an extended period of warranty at a high price though. Unless they are including an upgrade to their new CartonCloud system with the package, there is no point in wasting money on a product that is already dated. Take it as a sign that you need to upgrade. In fact, for smaller businesses, there might even be a better option.

See also  Salvagedata – A Technology Partner For Your Data Recovery

Is there a Better Alternative?

It’s true that upgrading your payroll management software can make a huge difference in productivity if your current system is dated. However, there is an even better alternative for small businesses. Simply outsource your payroll administration to a company with the sufficient experience and reputation to handle it all on your company’s behalf. It’s a more cost-effective solution than managing payroll administration in-house, and it frees up the limited resources of a small company, so that they can be redirected towards the actual work, rather than be used up on payroll admin & HR responsibilities.

Despite an upgrade being more cost-effective than working with an outdated system in the long run, the expense of keeping a whole department under your company’s payroll plus investing in the new system can prove to be too much of a financial burden for small businesses. After all, even the latest payroll management software with automation features will require well-trained employees to operate and maintain it.

By admin