Payroll & HR Software: 5 IT Terms You Need To Know

Payroll & HR Software: 5 IT Terms You Need To Know

Payroll & HR software has changed dramatically over the last few years. These newer software solutions are more flexible and cost effective, freeing HR personnel from continuous administrative work. These software solutions also allow employees to connect in a manner which increases productivity throughout the organization. When purchasing the newest payroll & HR software, there are five key technologies that you should look out for. Below is a list of them:

Cloud Functionality

Cloud software is defined as any application which is accessible online, and software which fall under this category includes both the older applications which are hosted, along with newer software that is multi-tenanted. Software which is multi-tenanted is designed to be shared with others. The same infrastructure will be shared by multiple users, but each user will get their own space. This allows new features and updates to be applied more rapidly.


SaaS, or Software as a Service, is a method by which software is provided. Rather than purchasing and handling the databases, firewalls and software which are necessary for managing business applications, clients simply log in via an online page, and then use the software in the form of a service.


HTML5 is the newest version of HTML, or Hypertext Markup Language. This programming language is the most widely used for interpreting the look and content of web pages. The majority of laptop, mobile and PC design companies are now supporting HTML5, which means that software solutions that are designed using it will be capable of functioning across a wide variety of devices without the need of special plugins or upgrades.


API, also known as Application Programming Interface, is responsible for simplifying interfaces while making them cheaper to develop. Before API was developed, those that wished to exchange data with other business software (such as between payroll software and HR), needed a vendor to develop a custom integration. Each time the system changed, this integration had to be updated, which was time consuming. Another benefit of API is that your IT personnel may be able to design the integration from scratch.

Elastic Computing

When it comes to elastic computing, this means that you have the ability to dynamically bring in additional resources for computing. A good example of this is when your systems are operating at peak usage. When your provider informs you that this has been activated, it is a sign that the technology is being optimized in a manner that allows costs to be reduced without lowering the quality of service. The only alternative to elastic computing is to purchase additional capacity to deal with demand fluctuation, and then pass on the costs to the consumer, which is both undesirable and inefficient.

Payroll and HR software is a must for human resource departments of all sizes, but it is important to make sure that this software comes with the cutting edge features which are needed to ensure that the department operates efficiently.