TECHNOLOGY
marketing, HR [human resources] and operational functions where the use of collaboration tools, CRM [customer relationship management] and ERP [enterprise resource planning] systems are widespread. However, in payroll our function seems to be a little late to the party. In research we carried out recently, we identified that only one in three organisations are using a cloud-based payroll technology today – although we did report that 72% of respondents were evaluating their technology options, so even before the pandemic, we are in midst of a technology refresh cycle. However, I do think it’s fair to say that the pandemic will accelerate this process. The experience of the last twelve months or so has signalled that our organisations require access to decision-making tools on-demand. Indeed, we saw that in the wake of the 2008 financial crash, organisations rationalised processes and turned to the first wave of emerging cloud technologies across all business functions to optimise their operations. Moorepay team: Our Annual Payroll Survey in 2020 found that 44% of surveyed professionals use cloud-based payroll software. Further, a year-on-year comparison revealed a 14.6% increase in cloud-based payroll software usage from 2019 to 2020. The shift was already happening pre-pandemic, but the impact of Covid-19 has highlighted the benefits
of storing payroll data in the cloud, rather than on-premise, and, coupled with the ongoing requirement for employees to work from home, has pushed many businesses to make the switch. ...based upon present trends, we anticipate that cloud software will become the default and surpass on- premise... Is it inevitable that cloud-based software will become the standard for the industry and, likewise, will remote working remain a widespread modus operandi in the industry even after the pandemic, thanks to its increasing adoption? JD: Many industries have extraordinarily complex challenges, so it is good to ensure when embarking upon a review that all the nuances are accommodated. I would certainly expect to see this type of offering continue to build over time, and as the offerings develop, so will the market. Hopefully, what will become more available as we come out of the pandemic
is flexible working. I think business leaders have witnessed just how diligent and supportive payroll and pensions teams are and how committed they are to getting the job done, whatever the hurdles. If employers can be more flexible, that has to be a win-win for all concerned. CD: It is absolutely inevitable that true cloud software will become the standard for the industry – the only question is around the timescales. Barely anybody looks at desktop solutions for accounting or HR these days and payroll will be the same. Starved of investment, desktop and traditional server-based solutions will rapidly reach the end of their economic life, as we’re already seeing with the retirement of brands. The bookkeeper, accounting and non-specialist bureau markets will drive the way along with SMEs. Software specialising in specific areas, such as public sector or education, will probably be the last to cling on as a desktop standard, but it is hard to envisage in five years’ time businesses wanting to go through the annual process of downloading new tax versions of their software when their competitors are finishing one tax year and immediately starting on the next. PG: Adoption of cloud-based software will only increase, especially as the provision of super-fast broadband increases across the country. This will also help the adoption of remote working. The pandemic has probably brought forward by five years the adoption of cloud-based technology and working remotely. While working remotely will become more common, a hybrid flexible approach to where people work is the more likely outcome. A lot of people are missing the collaboration and ‘water cooler’ moments that an office brings. However, if you are wanting to concentrate without distraction – maybe when running payroll – the ability to work remotely is good to have. BS: I don’t think it’s inevitable. Many organisations continue to see payroll as a function that, if it isn’t broke, why fix it? And while others may choose to outsource the function, I do think they might miss the strategic value that payroll data and insights can add to their organisation. There is, understandably, some
| Professional in Payroll, Pensions and Reward | February 2021 | Issue 67 40
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