The way organisations buy HR and payroll software is changing, and not necessarily in ways that benefit everyone. Across the Human Capital Management (HCM) market, a clear trend has emerged: businesses are moving away from best-of-breed, standalone solutions and towards combined HR and payroll platforms. A recent survey we commissioned puts a number on it—70% of buyers say their next software purchase will be a combined HR and payroll solution. It’s a shift that promises efficiency and simplicity, but one that carries some significant risks, particularly for payroll teams.
At Cintra, we’ve seen this trend play out directly with our own customers and prospects, and it mirrors what’s happening across the wider market. So, what’s driving it, and what does it really mean for organisations?
Why combined solutions are so appealing
The attraction of integrated HR and payroll systems is easy to understand. The promise of a single platform—one source of truth, no duplicate data entry, seamless workflows between HR and payroll processes—is a compelling one. For senior leaders and decision-makers trying to reduce complexity and drive operational efficiency, a combined solution ticks a lot of boxes.
When a single vendor can offer onboarding, performance management, and payroll processing under one roof, it simplifies vendor relationships, reduces integration headaches, and often comes with a tidier price tag. For time-stretched HR and finance leaders, that kind of simplicity has real appeal.
The unintended consequences: payroll's shrinking seat at the table
Here’s where it gets complicated. As demand for combined solutions has grown, so has a subtle but important shift in who’s driving the buying decision. Increasingly, it’s HR leaders—not payroll professionals—who are taking the lead in software selection. And that change in dynamic has consequences.
Payroll is a highly technical discipline. Getting it wrong doesn’t just create administrative headaches. It has real legal, financial, and reputational implications. Payroll professionals understand this. They know which features matter, which edge cases need to be handled, and where seemingly minor gaps in functionality can cause major downstream problems.
When payroll teams are sidelined from the purchasing process, organisations risk selecting a solution that looks great from an HR perspective but falls short when it comes to the genuine complexity of payroll. That’s a risk that often doesn’t surface until after go-live—when it’s costly and disruptive to fix.
The question of native functionality: Where did the software start?
One of the most important (and most overlooked) questions when evaluating a combined HR and payroll solution is this: where did this software come from?
Was it originally built as a payroll engine, with HR features added over time? Or did it start life as an HR platform, with payroll bolted on later to meet market demand? The answer matters more than most buyers realise.
Software that started as an HR system may offer a polished, intuitive user experience for HR workflows. But payroll is not simply another HR module. It demands precision, compliance with complex and ever-changing legislation, robust audit trails, and the ability to handle an enormous variety of pay scenarios. When payroll is an add-on rather than a native capability, these requirements are frequently where the cracks appear.
Glossy demos can mask these limitations. A system might handle straightforward payroll scenarios with ease, but struggle with the kind of complexity that many mid-sized and enterprise organisations deal with every day; things like multiple pay frequencies, complex absence calculations, or intricate pension configurations. By the time this becomes apparent, the contract is often already signed.
What this means for organisations buying today
None of this means combined HR and payroll solutions are the wrong choice. For many organisations, they absolutely are the right choice. But how you go about selecting one matters enormously.
First, payroll professionals need to remain central to the buying process. Their expertise is not interchangeable with HR knowledge, and their involvement is what protects the organisation from purchasing a system that can’t actually do what payroll needs it to do.
Second, organisations should look beyond the headline features and the demo. Test the system against your actual payroll complexity. Ask vendors pointed questions about how their payroll engine works natively, what it was originally built to do, and where its limitations lie. Speak to existing customers in similar industries with similar payroll complexity.
Third, don’t let the appeal of simplicity override the need for capability. A single platform that handles HR beautifully but delivers payroll unreliably is not a simplification. It’s a risk.
Don't forget about payroll
The shift towards combined HR and payroll solutions reflects a genuine and understandable desire for greater efficiency. But efficiency gained in the buying process can quickly be lost if the chosen system can’t support the realities of running payroll accurately, compliantly, and at scale.
The message is simple: involve your payroll team, interrogate the payroll functionality, and don’t let an impressive demo be the last word.
In a world where HR is increasingly driving the software agenda, payroll professionals need to make sure their voice is still heard—because the consequences of getting this wrong fall squarely on them.
