Payroll is as essential as electricity to keeping the lights on in your business. If paychecks go out late or wrong even once, you’ll need to repair damaged trust with your employees. And if you aren’t getting payroll taxes to federal, state, and local governments on time, you’ll incur fines or interest, wasting money.
Maybe you’ve never had these problems, but consider your HR team’s experience in managing company payroll. What hurdles must HR jump to keep payroll processed smoothly and accurately, to maintain compliance with shifting regulations, to create useful reporting, and to ensure that everyone gets paid on time and accurately?
I recently spoke with a friend who works in HR. She said she had to go into the office for an hour or two on Christmas Day to process payroll so that everyone got paid at the end of December.
In 2016, we had technology that enabled a stuntman to skydive from 25,000 feet without a parachute and walk away unscathed. Surely we can save an employee the hassle of driving into the office on a holiday just to “keep the lights on.”
If you’ve been struggling to process payroll efficiently, here are 3 reasons it’s time to use a cloud payroll solution.
1. You need more flexibility in when, where, and how your employees process payroll.
Imagine a scenario that lets employees access and process payroll anywhere—from home, while traveling, or on their iPhone while sitting in the waiting room at the doctor’s office.
Because cloud payroll software can be accessed from any computer or device, your employees don’t have to be at their office desks to use it, making payroll processing more portable and scalable.
Leaving the office for a doctor’s appointment or an impending blizzard no longer poses a threat to getting payroll processed on time. And remote employees around the world can access your software and process payroll too.
2. Your isolated Payroll system may be holding you back.
In today’s competitive marketplace, access to information can make a big difference for the company’s bottom line. If your systems are not part of an efficient integrated landscape, you may be entering information twice, not getting access to data trends, and the data in the rest of your Human Capital Management systems may not be complete when you make decisions. The systems in the cloud are built to be connected to other systems and therefore are much easier to integrate to, which opens up possibilities of communication between the systems that may result in a more complete picture of the HCM data and better decisions based on this data.
3. Your payroll system is falling behind.
With the increasing complexity of processes and increasing amount of data, it is getting harder to manage the HCM processes or find the data you actually need. The goal of the cloud is to focus and simplify the processes and offer the data you actually need and this trend is making older system feel more inefficient with every new cloud update. Just like the user interface of the iPhone changed the way we expect data to be presented to us, the cloud continues to reform our experiences with payroll processes.
4. You’re spending too much time and money maintaining payroll software.
Provisioning your own hardware to support your payroll software, plus maintaining servers and updates to keep your software running is costly and risky. A cloud payroll solution stores and maintains everything for you. All your data is backed up on secure servers to prevent loss, and your solution provider is responsible for automatically updating the software and keeping it running 24/7.
SAP says, “Top performing payroll organizations process payroll at a 37% lower cost than standard organizations.” To learn more, download the SAP SuccessFactors brochure.
Bringing It Together
Cloud payroll software gives you the flexibility, automation, time, and cost savings you need to focus on what your business does best. You’ll reduce risk of error and regulatory non-compliance with government agencies. You’ll also benefit from a level of security and maintenance expertise that you likely couldn’t replicate on your own.
Paid employees are happy employees, and so are HR teams with the right tools to help them succeed at work.