In these challenging times, employees are struggling to meet the demands of work and family. Many face financial hardship, mental stress and health concerns. Employers, striving for greater productivity and increased margins, know that this outcome is predicated on an engaged workforce, one that feels cared for and supported by the organization.
We know that there is a direct, positive correlation between the financial success of a company and employee’s perception of their work experience. One of the most critical components of the workforce experience is payroll – it must be accurate, and it must be delivered on time, every time.
The evolution of payroll
Payroll as we know it today, started during the first industrial revolution. Payrolls were manually processed for all employees, but not fully documented. The next step was using a technology solution to enable payroll automation.
Fast forward to today, cloud payroll is the way forward. A fully integrated payroll and HR solution, enables you to focus on compensation strategy. Using AI and data-enabled pre-built mechanisms can help to improve the employee experience.
Why move to the cloud?
The pandemic forced employers to rethink many processes, including the delivery of payroll. Many organizations around the world continue to run their own payroll on-premise, posing unique challenges to delivering payroll during a global health emergency.
Three drivers in moving to the cloud
There are many reasons why companies decide to move to the cloud, but here are three reasons for the shift
- Rapidly changing policy
Legislative changes related to payroll, meant to mitigate the financial impact and regulate employer actions, have been swift during the COVID-19 pandemic.
Payroll administrators have the knowledge and mechanisms to keep informed on legislation concerning collective labour agreements, government tax and employment guidance, as well as specific organization policies. They then have to apply them to payroll systems.
However, by using a cloud-based system this can be done with less manual intervention as the provider updates the system regularly to ensure compliance.
- Remote workforce
Companies around the globe are increasingly looking to adopt a hybrid model of working. That is employees spending a few days in an office and a few days remote. As a result, access to remote systems becomes increasingly important.
Take for example an on-premise payroll administrator, who may not be able to perform their duties due to their own illness of that of their family. A cloud payroll system can help to maintain continuity.
- Technology and efficiency.
One of the most compelling reasons to move to the cloud is efficiency. Many tasks associated with payroll are considered commodity or repetitive, which can be efficiently and accurately run by AI and intelligent technology.
Using cloud-based technologies allows payroll administrators to focus on compensation strategy rather than mundane tasks. Using data from cloud systems can inform intelligent and data-driven, employee-centric strategy.
As you can see there are many compelling drivers to moving to the cloud. Maintaining business continuity during the COVID-19 pandemic magnified this. If you would like more information on how we can support your move to the cloud, please get in touch.