The days of paper-based spreadsheets to manually manage HR and payroll are numbered. While this approach is still being applied in some parts of Africa, experts say these traditional manual systems are giving way to automated HR and payroll systems that deliver intelligence rather than just perform conventional computer processing transactions.

It takes first-hand knowledge of technology innovation and proven experience to be taken seriously in the cloud payroll and Human Capital Management (HCM) software solution development and services game.

It is an area of ICT that established operators like PaySpace have had to adapt to- and be agile enough to differentiate themselves in.

The Johannesburg-based multinational cloud payroll and HCM software specialist has been in operation since 2000, entering the market at a time when HR and payroll management involved mainly manual, administrative procedures using legacy systems.

The digital workplace was a distant notion, information technology and HR were far removed and mostly segregated.

Fifteen years on and we are talking a very different market now.

Automated intelligence

PaySpace CEO Bruce van Wyk says the markets are today defined by automated, intelligent systems, employee self-service ability and analytics, as well as mobility.

Globally, HR systems have produced some interesting approaches mainly centred around talent, performance management and development, and recruiting but not in the payroll element of employee management, van Wyk adds.

"Payroll aggregators are coming through and there is a focus on consolidating the global payroll function... but this has more to do with reporting consolidation, rather than actual processing intelligence. There is a move towards automation, which we focus on. We look to remove traditional manual processes and approaches, and on making information accessible to the user," he says.

In South Africa the emphasis today is on leveraging the functionality of Employee Self Service (ESS), mobile devices, cloud, business intelligence and security. Issues like cost, flexibility, support services and accurately interpreting legislation remain challenges to HR and payroll administration on the continent.

Van Wyk explains that HR and payroll has not evolved at the same pace in the rest of Africa. For the most part there is still reliance upon legacy systems and only newer front ends. However, he adds that these market segments are opening up.

The company was one of the first to market with a pure cloud payroll solution and now has a customer database that covers 37 countries on a single platform that processes 3100 clients.

Their value proposition is based on a move away from web-enabled platform and offer pure cloud solution. "True tech advancement in terms of a true cloud is where things are changing, and we want to make it accessible, like removing accessiblity hurdles such as VPNs, and offer benefits like low maintenance for clients, as well as legislative updates... these changes need to be incorporated into the payroll system."

Although there is an awareness of the cloud, generally, says van Wyk, he adds that more must be done to inform the market of the real benefits and true value. He lists these benefits as lower maintenance, no installations, lower capital outlay and the opportunity for service providers to expand their reach to more regions and fast-track growth. "For example, an accounting firm in Kenya can now service Uganda and Ethiopia from Kenya due to the cloud and automated compliance."

There is a growing need in Africa for scalable, flexible solutions to facilitate access to information in order to update systems without any downtime and in realtime. "If there are solutions used, they are expensive and only cover a small footprint in certain areas," van Wyk continues.

This is where PaySpace is concentrating its value. In addition to its cloud offering, another differentiator for the company is its consideration of the continued integration of HR and payroll in terms of system development and application.

Leadership wants to position the company and brand as the benchmark in payroll system and service. The strategy going forward for Africa is to align with country partners, widen its portfolio of accounting and ERP products and enrich its community forum approach.