Feature topic – Remote working and payroll software in the cloud
The sky’s the limit Simon Bocca, founder of PayCaptain, extols the virtues of the cloud. Cloud-based payroll software is the most flexible, agile and appropriate solution for constantly changing, mission critical payroll operations. Over the last fifteen years there has been a continuous increase in the deployment of cloud- based payroll technologies, and the need for remote working caused by the pandemic has influenced the adoption of cloud technologies. default and surpass on-premise in 2022. Many of the payroll professionals with access to cloud-based software have enjoyed the benefits of working from home. The desire to continue to do so will likely remain – and this is backed up by the CIPP’s findings that 67% of businesses have seen an increase in the received number of flexible working requests. For the payroll professionals who have been able to work effectively from home – thanks to their cloud-based software – the desire to continue to do so will not go away. What are some of the reasons of resistance within the industry to cloud-based payroll software at present, and are any of them valid? JD: As noted earlier, cloud does come with parameters in terms of standard offerings – albeit they are being developed and expanded all the time. hesitancy in companies moving their payroll operations to the cloud. After all, we are talking about systems that are critical in the running of their business that contain highly sensitive, personal information. While these were common reservations pre-pandemic, the Covid-19 crisis forced us all – successful, in the main – to adapt to a new way of working. MT: Cloud-based payroll software is more reliable, flexible and secure than on-premise software. It’s also easier to maintain and upgrade, and scale as businesses grow, and it’s already become the standard in many other areas of business software. Despite its many benefits, our payroll survey found that 41% of businesses are still using on-premise software. However, based upon present trends, we anticipate that cloud software will become the
In order software providers manage the databases effectively for all clients, version management and upgrade routines are important to be followed to maintain support. For some businesses this is a challenge dependent upon how their systems are configured and changed currently.
including collaboration, security, file storage, telephony, video calling, mobile messaging platforms and payment processing are also part of a mission critical payroll service; and all of these capabilities can be delivered via the internet to facilitate payroll professionals working from anywhere. The most effective and robust payroll operations are highly automated, integrated, paper free and operate securely in the cloud. MT: There is a common misconception that putting your employee data in the cloud is risky because the cloud isn’t as secure as a server. But this simply isn’t true. Cloud providers offer the latest technologies and continually invest in controls that strengthen security, protecting data from any potential threat. n is more expensive than software B in pure licence costs, but when you take into account more efficient processing times, automation, the improved client experience, the lack of IT support and servers, then the pricing is cheaper overall in the cloud. Payroll administrators are undervalued but still more expensive than software. Inertia is the same issue that the industry has always seen in terms of switching software – it looks different and we are wary of change. PG: In the past there has been concern about security of cloud-based payroll, but as more and more of everyday life has moved online, like banking, this concern has become less relevant. If you use a mobile phone app then there is no reason not to use cloud-based payroll! BS: Look, companies are going to evaluate technologies based on their own requirements, so all concerns are valid. Some may regard the process of transitioning to a new payroll system as too much of a risk. From our perspective, we’ve done it for every one of our 4,500 customers so we’ve picked up lots of experience. Other companies are concerned about how data is managed in the cloud and again, we are talking about a technology that has evolved over two decades into what it is today: a safe, secure platform that is used by governments and financial institutions globally to manage the most sensitive of data.
...likely to maintain or enhance their
capabilities for remote working and this includes the deployment
of more cloud technologies...
Cloud technologies can be highly beneficial for the payroll operation because of the single code base, which is managed and maintained by the software vendor. New features can be deployed instantly to enable compliance with new legislation and new ways of working. Companies are likely to maintain or enhance their capabilities for remote working and this includes the deployment of more cloud technologies associated with the payroll process. Technologies I know that cyber security and risks of hacking are a consideration. However, all providers must be able to demonstrate a level of continual penetration testing and a high standard of protection to answer those fears. There is also the concern from internal IT departments that are used to being responsible for server hardware and maintenance and may have to be convinced that the cloud solution is right for the business. CD: There are definitely sectors where the choice of true cloud software is limited – for example, education and the public sector. Then there are sectors and companies that are not comfortable with cloud-hosted data. More generally though, the two significant issues are inertia and price. Price often comes down to a lack of appreciation of value. Software A
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| Professional in Payroll, Pensions and Reward |
Issue 67 | February 2021
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