Compliance enhanced with cloud payroll
According to research from RightScale, some 94% of organisations are using the cloud in some capacity within their businesses.
“This is seeing many businesses adopting a strategy where they consider operating a process, workflow, or similar in the cloud before looking at on-premises alternatives,” says Sandra Crous, MD of cloud-based payroll and human capital management software, PaySpace.
She says they are doing this to take advantage of the many benefits that cloud brings, including cost efficiencies, streamlined operations and automatic updates.
“A cloud strategy has the potential to save a lot of time and money for businesses, and nowhere is this truer than with payroll and HR solutions,” adds Crous.
Another benefit, she says, is the need for less hardware. Going the cloud route means that corporates have to spend far less on maintaining legacy hardware and infrastructure, and the space needed to house it all.
Maintenance costs are built into service provider contracts, eliminating the need for in-house support staff in the event that something goes wrong.
Moreover, she says businesses don’t need to worry about the technology, as they will have access to the latest and most advanced software, without having to physically install it, or worry about the ongoing maintenance and upgrades needed to keep it up to date, because this is done regularly and automatically.
There is no large capital outlay, Crous adds.
“With any ‘pay-as-you-use’ model, companies can benefit from economies of scale, as pricing is flexible, with packages to suit companies of every size. There is also far greater flexibility, as businesses can instantly scale up or down according to their needs, with no manual intervention. And with an increasingly mobile workforce, having a cloud solution enables employees to work more easily on the go. As long as they have an Internet connection and a mobile device they can work from anywhere, at any time."
When it comes to cloud-based payroll software solutions, Crous says these should calculate the correct amount each employee should be paid, and help keep track of their work records, including leave, benefits, taxes and overtime which not only saves a lot of payroll processing time by removing the need for manual input, it also offers real-time information for the business.
Better security and compliance
But perhaps the most compelling benefit is the increased security and compliance that cloud solutions can offer.
Automatic security software upgrades are handled by the provider, meaning that remaining secure is hassle-free, says Crous.
Keeping up to date with staff contract changes, as well as governance can be a very onerous task because payroll and HR processing is complex and governed by numerous sets of regulations at different levels.
“This complexity is increased when a business has offices all over the world, but a good cloud solution will automatically update information concerning new regulations, and ensure your business remains compliant at all times, and in all of its offices.”
This is particularly key when dealing with personal data, such as payroll information, she says.
“Loss or theft of this data could result in hefty fines being levied against your organisation, not to mention a loss of customer confidence which can prove to be catastrophic.”