How to tell when you need a new HR and Payroll system

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Human Resources is all about adapting and evolving, it is an ever-changing playing field that must change accordingly in order to ensure that employees are kept engaged and motivated.

HR software has a huge role to play in this, and so it’s important to ensure that your company is up to date with the latest solutions and software to keep your employees satisfied. 

But how do you know when it’s time to finally close the door on your outdated HR system and open the door to a new realm of cloud-based, automated HR? Here are a few tell-tale signs that HR teams should be on the lookout for. 

Your software isn’t cloud-based

Coud-based HR software and payroll software is becoming ever more popular. There are many reasons why your HR and payroll software should be on the cloud, from making typical tasks such as talent management and onboarding more streamlined to providing far greater security.

With access anywhere at any time to all of your important information and data stored in one place, it means there’s no accidental losses or mistakes. The solutions that are a part of newer HR softwares allow the human resource department to streamline otherwise more painstaking tasks.

Also, with around 24% of workers in the UK having a hybrid working style, cloud-based software is more essential than ever.

You want to make better decisions using analytics

As businesses grow, the desire to make smarter decisions becomes both a desire and necessity. If you’re finding that this is something that you want to integrate into your business strategy, then it might be time to look for a new HR software with reporting and analytics HR solutions.

With a solution like this, HR is able to identify exactly what drives productivity by looking at data and trends on key metrics such as employee engagement, employee lifecycles and recruitment. These analytics ultimately help HR departments make evidence-based decisions as modern HR software features real-time data.

You can create templates and reports as you like, allowing human resource departments to really zone in on specific areas in a fraction of the time it would take them to compile reports on their own. 

Continued compliance mistakes and human error

Compliance mistakes can rear their ugly head in many forms, and errors with payroll is one that is all too common.

Getting payroll right is essential as your employees have bills that need to be paid and important expenses every month. Mistakes with payroll can result in severe employee dissatisfaction, and can have a very nasty knock-on effect when it comes to employee engagement. 

Fast growing companies are especially vulnerable to payroll errors as their HR and payroll software often doesn’t have the capability to match the growth. XCD’s payroll solution processes payment 50% faster and automates a lot of the work, making this easy-to-use solution a necessity for a company wanting more effective payroll.

Outdated HR software, payroll software or manually handling data can result in human error which can end up being very costly for your business. Small businesses may be able to manage for a while with manual data entry and record-tracking when it comes to payroll of their employees or changes in laws, however as a business grows this is not just inefficient, but down-right impossible.

If you begin to notice a consistent run of mistakes when it comes to employees not being paid on time or not receiving their pay, this is a clear indictor that it’s time for a new HR software and payroll software. 

 The more the business grows, the greater need there is for automation within their payroll solutions and an integrated HR software. 

A lack of self service features

When a HR software lacks self-service features, this can cause a headache for both HR professionals and employees themselves.

Self service solutions automate and streamline processes which otherwise can take up lots of time by allowing employees to perform tasks on their own, alleviating HR’s workload and speeding up the entire process. For example, employees can log in to their HR software, view how much annual leave they have left and then request any dates off that they may desire with the click of a button.

Without self service features, processes such as requesting annual leave can take days all in all as employees have to fill out tiresome forms only to be handed in at the back of a long line of annual leave requests. HR professionals then have to sift through each form one by one, taking their time and attention away from other pressing and important HR processes such as onboarding or accurately managing payroll.

Ultimately, employees want more control of their time, and self-service solutions are a great way to do this and keep HR processes running smoothly.

Employee turnover rate is Increasing

Outdated HR software can cause company’s to face a higher employee turnover rate. This is because the system may not be able to handle the influx of new employees or current employees’ needs.

For example, an outdated HR software may not have the capabilities to allow employees to fill out their own information themselves, or to go in and change any necessary information. As a result, the company’s payroll department would have to spend precious time and resources manually updating this information for each employee. This can lead to frustration among employees and increase the likelihood that they will leave the company.

As well as this, it means that HR’s time and attention is continuously taken away from more pressing issues such as compensation management, discrimination issues and more. 

Onboarding is inefficient and uninspiring

Onboarding is an essential process for human resource departments in any company. First impressions really do count, and having an inefficient onboarding process can really leave new employees feeling like they’ve made a mistake. In fact, 69% of employees who experience a good onboarding process typically stay with a company for 3 years or more. This shows the importance of having an effective onboarding process, as it can produce company loyalty, drive and passion right from the start.

Outdated software can cause problems with automation and communication, which can lead to a delay in bringing new employees on board. Additionally, a lack of integration with other software can also lead to a disjointed onboarding process.

Cloud based HR software also allows new employees to begin their onboarding process long before they’ve stepped foot in the door. With XCD’s onboarding solution, new starters can simply log into their employee profiles and access any necessary information they may need to fill out or read before their first day.

Manual Reports are still the go-to

One major sign that your company needs a new HR and payroll software is if reports are still being produced manually. Not only does manually extracting data and building reports cost a lot of time, it also doesn’t provide the same level of insight into important HR processes such as employee engagement, performance management, onboarding and more that automated reports can provide. 

A modern HR system automates reports, which can save HR professionals a lot of time and improve the accuracy of the data. With an automated system, employees’ data will be updated in real-time, so there will be no need for producing manual reports and helping to improve the efficiency of the HR departments.

Small businesses and large businesses alike demand more sophisticated reports than ever, and with new HR and Payroll software reports this becomes a possibility. 


If you’re noticing any of these signs, it might be time to upgrade your HR software and payroll system. But first, you may want to read all about the hidden costs of a new HR software: