Payroll – it’s one of those systems that needs to work, but in reality, few think about it. It’s critical, but not front of mind. In fact, 86% of respondents to a recent survey we commissioned either strongly agreed or agreed with the statement ‘Payroll is vital as it gets people paid but I think nothing more of it – it just has to work and work well’.
As such, it’s probably not most people’s first choice of application to move into a cloud environment. However, if your organisation’s payroll isn’t currently hosted in the cloud, you might be surprised to know that while you are part of a majority, it’s only by 4% – 48% of UK organisations have migrated payroll to the cloud.
Why would you move payroll to the cloud?
If you’re in the remaining 52%, you might be wondering what they know that you don’t. You may also be wondering why they’ve invested the time and resource into something is for the most part out of mind (as long as it works). Here’s what those almost one in two people think about payroll in the cloud:
There might not be anything too surprising there – a big part of any cloud pitch is the flexibility and convenience it offers. What might come as a surprise is that 42% went with cloud for security reasons.
Why could that be a surprise to you in the 52%? Because security was one of the biggest fears organisations had when moving to the cloud, and it was also the number one fear that proved to be unfounded.
From hygiene factors to strategic insight
Security is critical, but it is ultimately a hygiene factor – it needs to be there as standard. What about the benefits of using cloud-based applications which could contribute a strategic edge to the business? Changing ways of working are seeing an increase in the number of self-employed, and having a flexible, agile payroll system is critical to seizing the opportunity this trend presents. These gig-economy workers are a means to securing high-quality, experienced talent in a rapid, cost-effective manner – but how well suited is your payroll to accommodating individuals who don’t fit the standard permanent employee model? We already know that work practices are changing and the Millennials conform to very different ideals about employment.
Another area to consider is what sort of data could having cloud-native apps do for your understanding of the market and ability to react to it? From our survey, 62% agreed with the statement ‘Data collected from payroll will enable me to adapt to changing market conditions sooner’, while almost three quarters (72%) believed payroll data collected and analysed by HR can influence the strategic decisions a company makes.
We’re going to be looking into both of these areas, and how they can help HR be a strategic weapon for its organisation, in the future. For now, consider this – at a time when the way we work is changing rapidly, Human Resources need to be proactive to help shape their organisation’s approach to talent. Cloud-based applications can give HR the ability to do just that, ultimately leading to increased organisational performance. Check out this infographic to guide you on the how.
To find out more about how moving payroll into the cloud can help transform your organisation, get in touch here.