The launch of SD Worx Buddy Payroll marks a turning point for payroll in Europe. This brand-new software replaces batch processing and delivers real-time payroll results. Every change made by HR, the employer, or the employee is processed instantly and continuously. Auditors have called it an unprecedented innovation. How did the team at Teal Partners, together with SD Worx, succeed in building this revolutionary software? An interview with Koen Denies.
Koen Denies: "SD Worx wants to capture the leading position in the European HR and payroll market, where SMEs play an important role. Most SMEs don't have specialized HR or payroll knowledge in-house. To expand their offering for European SMEs, SD Worx needed new software – this wasn't possible with the existing legacy software.
Teal Partners and SD Worx have been successfully working together since 2016. Our technological expertise and knowledge of the employment sector, combined with SD Worx's business power, made disruptive market innovation possible. We joined forces and from this SD Worx Buddy was born. This new software gives SMEs clear insight into what it costs to employ people. It provides better, transparent results in a fraction of the time that was previously needed. It makes payroll administration significantly more efficient and higher quality.
Payroll software exchanges data with government institutions, for example for reporting social security contributions. In Germany, a certificate is required to submit government declarations digitally. The Informationstechnische Servicestelle der gesetzlichen Krankenversicherung, or ITSG for short, is responsible for this. Consider it an exam in which auditors test complex payroll scenarios. We passed with flying colors. With the certificate in hand, SD Worx can now give the first customers access to the system."
Koen Denies: "We rethought the process. Until now, payroll was a black box: you entered data and got a result back, without insight into the calculations. We made the entire process transparent - from entering data and onboarding clients and employees to calculating results."
The combination of SD Worx's business power and our technological expertise enables us to realize technology at this scale.
SD Worx Buddy Payroll calculates continuously. No more waiting time of a day - the latest figures are always ready. This enables forecasting. Based on the data in the system, we predict upcoming costs and employees' net salaries. A business leader can better assess the financial impact of decisions. Employees gain more insight into their payroll calculation and upcoming net payments.
We deliberately left out payroll jargon. All classic systems work with codes, like 1000 for a gross salary, but we call things by their name. This makes the software accessible to everyone."
Koen Denies: "Our technology is thoughtfully constructed. The concepts are sound and the components – from input to declaration and payment – are clearly separated and well integrated, both internally and with external parties. A rich parameterization layer allows business analysts to implement regulations and localization (adapting software for the local market, ed.) without developer intervention."
The auditors were surprised that we accomplished this with a relatively small team. Other payroll software developers employ hundreds of people. We process feedback in short sprints and iterate regularly. Delivering quality quickly is our strength, and that became clearly evident during the audit.
We build technology that makes companies more efficient. Our software brings new business models, digital products or services within reach for our customers. Buddy is a perfect example of this.
One of the auditors guided us through a trajectory prior to the audit. He noted that we listen well to feedback and played with open cards from the start. A nice compliment, because this is exactly how we work with our customers. Transparency is key, both in our technology and in our approach."
Koen Denies: "SD Worx Germany's customers are now getting first access to the software, which we continue to expand and improve. We continuously process feedback from early adopters and constantly add new functionalities, such as the ability to run simulations. Think of trying out scenarios like salary increases, benefits, bonuses, changes in working hours, parental leave, or other factors that influence payroll calculations.
After Germany, other European countries will follow. Each time, we help adapt the software to local payroll legislation.
SD Worx's management gave us a unique opportunity: complete freedom to develop the software according to our vision and approach. That trust, further confirmed by their participation in 2021, is now being rewarded. We are incredibly motivated to provide their customers with the best possible payroll experience. The combination of SD Worx's business power and our technological expertise enables us to realize technology at this scale. That's a thrill.
SD Worx Buddy Payroll calculates continuously. The latest figures are always ready. This enables forecasting. A business leader can better assess the financial impact of decisions.
Almost ten years of our lives are in this software. The relief was immense, not just because of the ambitious timing. It feels like a thousand kilos have been lifted from our shoulders. There were tears after the audit. We couldn't let this moment pass quietly – we threw a big party for all our employees to celebrate this milestone."
The entire team of Teal Partners celebrated the milestone in Antwerp's Plein Publiek
Koen Denies: "We build technology that fundamentally innovates sectors. But it's certainly not the case that we only work on projects that take years. You can also build software with immense impact in a short time."
As technology experts, we don't just execute. We look for ways to achieve efficiency gains through technology, making organizations more profitable. We explore how technology enables new business models, digital products, or services that increase a company's revenue. SD Worx Buddy is a good example of this. We made payroll more efficient, transparent, and higher quality. It gives SD Worx the opportunity to explore new business models.
We excel in software for the service sector. Not just in the employment sector, but also in financial, logistics, or administrative sectors, for example. Our clients all share the vision that technology fundamentally improves their business. IT is still too often seen as a cost center, but increased efficiency saves costs. New business models increase profitability. We are a partner for companies that understand this.
With Buddy, we created something brand new together with SD Worx, and it's unique proof of our capabilities. Our developers work on software that truly innovates. It's not about writing lines of code, but about transforming a sector with technology. We want to fundamentally improve our clients' way of working or business model."
