Payroll Complexities Drive Demand for Digitized Solutions Among Nordic SMBs

When it comes to payroll and human resource (HR) administration, there is an increasing complexity in the data and information connected with each individual employee, ranging from taxes, expenses and holidays to absences, collective agreements and parental leaves.

This administrative burden and complexity has created a demand for fast processing and seamless digital processes, according to Monika Juul Henriksen, managing director of Visma Enterprise in Denmark, the corporate arm of Norwegian Software company Visma.

In Denmark, Henriksen said, the lack of human resources has been one of the key driving forces behind this strong demand for better workflow automation within all administrative areas in the enterprise market.

“By automating manual or administrative processes, you gain insights and transparency that enables you to make decisions based on actual data and facts instead of a gut feeling,” she said, adding that it frees up human resources which in turn boosts business growth.

In the professional space, she added that people are increasingly seeking seamless flows of information from various sources via single entry points, which shows up in the increasing demand for a tailored solution “with best-of-breed products that connect data across platforms.”

Related: Norway’s Visma Acquires Danish Expense Management Solution to Drive Enterprise Market Growth

To cater to these various needs and accelerate its regional growth within the HR and payroll services sector, the Norwegian software service firm recently acquired the Danish FinTech company Acubiz, one of Scandinavia’s leading suppliers of expense management with a market share of 20% in Denmark.

According to Henriksen, the merger will enable Visma to fully leverage Acubiz’ solution, which has been designed to simplify and streamline time-consuming administrative processes including travel expenses, mileage reimbursement and absence management.

But until the acquisition, the Copenhagen-based subsidiary was helping businesses simplify their workflow processes as one of the leading firms offering HR and payroll solutions in Denmark. The corporate unit currently serves more than 1,500 corporate clients, offering digitized solutions and services not just within HR and payroll, but in people administration and absence management.

Taking the Digital Leap

The benefits of digitalization and automation of workflow processes for businesses, such as saving time and cost as well as boosting efficiency, cannot be overstated.

Yet still, not all small businesses have made the digital shift due to various reasons, including cost, reluctance to abandon legacy infrastructure and concerns about their inability to adapt to newer and sophisticated technologies.

Henriksen acknowledged that digitization can be challenging, and it requires commitment and involvement from the top management to be successful.

But for businesses still on the fence, she suggested they “start small” — either in the core business or in the periphery — after which they could “pick out the quick wins that do not mean a total revolution of either processes, habits, or technology.”

Read more: Visma, Youredi Partner To Help Small Suppliers Act Big

Accepting the likelihood that they won’t find a solution that fits all of their needs will also help manage expectations, she said. Instead, she recommends staying open to new insights and adjusting along the way because “the solutions available today will have changed within five years anyway.”

“With a ‘halfway there’ mindset combined with a fail-fast attitude, the gains will far outweigh the potential discomfort experienced when companies update business processes and force employees to change their ways,” she added.

Henriksen went on to say that it is important to address the ownership of those performing the tasks, including professionals like bookkeepers and controllers, who she said are experts in controlling financial flows. It’s why she believes businesses must make these employees “owners of digitization” and masters of digitizing administrative processes and routines.

See also: Norway’s Visma Considers 2023 IPO

She pointed out that many chief financial officers underestimate the value of letting administrative employees digitize the organization. When asked why they are not taking full advantage of the technology and digital possibilities available to them, she said it often boils down to keeping old habits and a lack of awareness.

But Henriksen said she is optimistic about the huge potential for digital transformation within Danish enterprise companies, noting that “the companies that embrace the possibilities within digitalization and process automation will gain a significant advantage when it comes to value proposition, customer relations and communication.”