At Salsa, we meet platforms every day grappling with the same critical question: Should we invest in building a payroll product for our customers today, or can we afford to wait?
Here we'll break down every reason we've heard on the street to justify waiting, and we'll share our observation: your customers need a better payroll solution now, and waiting usually costs you more than you think.
Debunking common hesitations
You might have reservations about launching payroll. We'll round up these concerns, address them head-on and share our insights.
"My customers aren't asking for payroll"
If you think your customers aren't asking for payroll, look closer. The signs are subtle but significant—missed opportunities, operational inefficiencies, and silent frustrations. Watching your customers run payroll is an eye opening experience!
Intuit found that customers spend hours per week on payroll (amounting to 20+ business days per year of time) when they could be focusing on growing their business. This silent struggle is a ticking time bomb. Legacy tools aren't helping business owners and they're not keeping up with the needs of modern businesses.
In the past, switching payroll providers didn't affect software platforms. Today, payroll movers might switch their entire platform to one that includes payroll. When businesses search for new payroll tools today it’s not just legacy payroll companies that show up: it’s platforms like yours.
For most of our partner platforms, the initial signup surge for the new payroll feature was a validating surprise. As described by a recent product leader, “When we launched the product we never would have imagined that 10% of our customer base would sign up for payroll in the first month of launch - that took us by surprise.”
"It's too big of a project for our current roadmap"
Think launching payroll is a gargantuan task? It used to be. In the early days of embedded payroll the feature took quarters or years to build. Today, that's no longer the case.
At Salsa, we've streamlined the process to make it surprisingly manageable. With pre-built UI that can be customized and a clear playbook from our team, most of our customers have their first users running actual payroll within a few weeks—with just one engineer on the job.
"Significant impact, minimal fuss." - Product Manager launching Salsa
Out of the box you get a full payroll feature set that will serve your whole customer base - even the things you traditionally had to build and manage yourself with other embedded providers (time off management, benefits, flexible pay types and overtime compliance). Our operational tooling makes it easy to give your customers a great experience, too. Out of the box help center content and hands on support over Slack really lower the lift to get started.
"Our product isn't ready yet"
You have high standards for what you release to your customers. But here's the truth: the current bar for payroll solutions is incredibly low.
Your customers are using outdated, clunky systems that waste their time and increase errors. What they need today is a reliable, straightforward payroll system that gets the job done efficiently.
[.c-highlighted] Our approach is simple: Launch, learn, and improve. [.c-highlighted] This allows you to quickly solve customer problems, get real feedback, and build market awareness. We have more than a few platform customers who cringed at launching the first version of their product with what they perceived as very significant gaps - lacking compensation data, not having time tracking, - and were surprised that their early customers praised the product as such a leg up from their old process. Our recommendation is always to launch early, and use customer traction and pull to justify resourcing the next features. What we see in practice is platforms getting stuck with a perceived giant product roadmap needed before payroll can built. See more of our thoughts here on what you need- and don't need - before getting started on your payroll journey.
"We don't have all the data needed for payroll"
Salsa is uniquely designed to meet you where you are today and complement what you have and augment what you don't. A single API collects all available data about your customers, and then our UI components respond to capture any and all missing payroll data. That way you can get started now, with what you already have, and retain the flexibility to build more when you're ready. We have many customers who initially launched a product without compensation data, our without time and attendance and later added functionality over time. Salsa ensures that your first product still gets the job done perfectly.
Why payroll should be a high priority
The payroll market is changing quickly. Your platform has a chance to be part of this change. Here's why acting now could be beneficial:
Solve customer pain points immediately
The urgency to address payroll inefficiencies is real and pressing. Your customers are losing valuable time and resources to outdated payroll systems daily. By launching embedded payroll now, you're not just adding a feature but providing an immediate solution to a critical business problem.
Integrated payroll eliminates common frustrations that plague businesses:
- Time waste: No more hours spent on manual data entry and reconciliation.
- Error reduction: Automated data flow minimizes human errors in payroll processing.
- Compliance headaches: Built-in tax calculations and filings keep businesses compliant without the stress.
- Fragmented systems: Say goodbye to juggling multiple software for a single payroll run.
Your platform can deliver these benefits now. Every day you wait is another day your customers struggle with inefficient payroll processes.
Learn from real customers
Launching your payroll solution now gives you a critical edge: early customer feedback. This invaluable input allows you to refine and improve your offering faster than competitors still on the sidelines.
Real-world usage provides insights that no amount of internal testing can match. You'll uncover:
- Feature priorities: What do your customers value most?
- Pain points: Where are the opportunities for further innovation?
- User behavior: How are customers integrating payroll into their workflows?
This knowledge becomes your competitive advantage. It informs your product roadmap, allowing you to iterate rapidly and dominate the market. The sooner you start this learning process, the further ahead you'll be.
Build awareness and drive adoption
Early launch means early buzz. It's your chance to position your platform as a fintech innovator. Here are strategies to capitalize on early adoption:
- Exclusive beta access: Create a sense of privilege among early users.
- Success stories: Showcase how early adopters are benefiting from your solution.
- Educational content: Help customers understand the value of integrated payroll.
- Referral programs: Incentivize satisfied users to spread the word.
The snowball effect of early adoption is powerful. Satisfied early adopters become your most effective advocates, driving organic growth through word-of-mouth recommendations. This creates a virtuous cycle of adoption, feedback, and improvement that propels your platform forward.
Strengthen your market position
Adding embedded payroll isn't just about a new feature. It can change your revenue and market position. Here's how:
- Increased average revenue per user (ARPU)
- Higher customer lifetime value (LTV)
- New revenue streams from payroll adjacent products
- Boost engagement on your platform: from both employers and workers
- Reduced customer acquisition costs through increased platform stickiness
There's another crucial reason to act now: your customers might not wait for you. Many businesses are actively looking for better payroll solutions and the flurry of activity in embedded payroll means the next payroll system your customer evaluates might be a competing platform, not a legacy payroll provider. By launching your payroll product now, you can:
- Meet an existing demand before your customers look elsewhere
- Gain a new acquisition channel before competitors do
- Position your platform as proactive and innovative in addressing customer needs
Remember, capturing market share early is often easier than convincing customers to switch later. Launching now puts you ahead of this curve.
Why customers will flock to your payroll solution
Your embedded payroll solution isn't just another feature—it's a game-changer for your customers. Here's why they'll eagerly adopt your offering:
- The power of "all in one": An integrated solution allows customers to manage everything from time tracking to tax filings in one place.
- Tailored to your industry: Your embedded payroll can offer industry-specific features that generic solutions can't match.
- Enhanced data flow and accuracy: Seamless integration means fewer mistakes and more efficient workflows.
The surprising demand for early access
You might think customers would be hesitant about a new payroll solution. The reality? They're eager for change.
Our partners have seen impressive adoption rates that begin with a bang and consistently grow month over month. Despite minimal marketing, businesses are lining up to try integrated payroll solutions. Why? Because the pain of current systems is real, and the promise of an integrated solution is compelling.
Your initial version doesn't need every bell and whistle to attract significant interest. Customers are so hungry for better payroll solutions that even early versions generate excitement. They see the potential and want to be part of shaping its evolution. This early interest provides invaluable feedback and creates a core of loyal, engaged users.
Sooner is better than later
There are clear benefits to launching embedded payroll early. By acting now, you can solve critical customer pain points, learn and iterate faster than the competition, build a loyal customer base, and strengthen your market position.
Payroll is evolving, and we're here to help you navigate this change. Take action: make the move today and explore how Salsa can help you offer better solutions to your customers, sooner, not later!
