Why 56% of payroll teams can't keep up with modern work culture
When companies still rely on old software, they lack the flexibility they need to grow and payroll software is one of the surprising culprits
Working remotely has its benefits, as does working from the office. Rather than choosing sides, workplace cultures must evolve to embrace both. Yet many companies are held back by outdated software and surprisingly, payroll systems are often a key bottleneck.RTO vs WFH: Not a contest
Tensions between working from home (WFH) and return to office (RTO) policies are well documented. Employees value autonomy, flexible schedules, and the ability to work without being measured by hours at a desk. Executives, meanwhile, often see human contact as essential for culture and insist on RTO.
Recently, Microsoft mandated three days in the office weekly, while Amazon requires five. But experts caution against rushing back to old norms. Modern workplace culture is defined as much by how people work as where. “Work hasn’t been limited to offices for over a decade. Companies should adapt their culture rather than romanticise old work styles,” says Sandra Crous, MD of payroll provider Deel Local Payroll.
Rigid attempts to rewind the clock can impact talent retention, morale, and productivity, and even create legal risks when labour laws aren’t respected.
The new office
Offices still matter; they are hubs for culture and collaboration. But they aren’t the same as a decade ago. Video meetings, messaging platforms, and hybrid schedules have changed how results are delivered. Employees now often work remotely with clients, or integrate part-time, freelance, and contract staff.
These changes were accelerated during the pandemic. The debate over RTO versus WFH is, in many ways, a distraction. Businesses need cultures and technologies that support flexible, hybrid workplaces.
Technology and payroll
Outdated business software creates rigidity, particularly in payroll, which underpins employee relations. According to the 2025 Deel Australia Payroll Report, 56% of payroll staff cite inflexible reporting as a barrier, 41% struggle to respond promptly to employees, and 40% frequently encounter system errors. Managing hybrid, remote, or global workforces is a recurring challenge.
“Many payroll teams still operate like it’s 20 years ago, using inflexible systems disconnected from modern business needs,” says Crous.
The cloud solution
Cloud-native payroll platforms offer self-service access, earned wage access, automation, remote administration, flexible reporting, and automatic updates. Administrators can process salaries remotely, managers can approve requests from smartphones, and HR and finance staff can generate real-time reports.
These platforms boost productivity, cut payroll errors by 60%, and reduce processing costs. Flexible licensing also allows companies to scale as needed.
Remote work and office work aren’t opposing forces—they’re both part of the modern workplace. Companies with modern, cloud-based payroll software have the flexibility to find the right balance for their culture and operations. “The key is identifying which parts of the business are lagging. For payroll, the solution is clear: move to cloud-native platforms,” says Crous.