Taking your payroll into the cloud
Cloud computing is changing the HR software landscape quickly. Companies that are looking into implementing new HR software or expanding their current functionality will at least consider going completely or partly into the cloud.
Cloud solutions offer good looking software, that is easy to use and can be deployed quickly.
On the attention points for HR moving to the cloud, NGA has organized several webinars:http://resources.staging.nga-d7.xio.be/5-lessons-moving-hr-cloud
But what does this all mean for payroll?
Looking at the way cloud solutions are deployed, one would be tempted to expect a much faster and less complex implementation however this is not the case;
- Payroll continues to be a complex functionality, which is highly visible to your employees in case mistakes are made.
- Implementations of payroll will continue to demand specialist skills (both technical and legislative knowledge) from the consultants that implement the solution, and demand on customer side that resources with the best knowledge are freed up, despite being already busy in the periodic payroll process.
- Many cloud software providers are working on providing new country payroll solutions. We know however by experience that it takes many years to have a solid working payroll machine, with only the legal requirements covered. Doing further pre-configuration, for example based on collective agreements, requires even more years of development and experience. This is why currently all cloud solutions that will use the already existing payroll engines are best positioned, since they have proven their position over the years.
So how will then cloud payroll solutions make your life easier, and what should you pay attention to?
- Integration = key
A good standard integration will allow you to connect your chosen cloud solution for HR to a payroll engine. Integration is usually a pain point, so check carefully that the integration offered by your foreseen software provider is truly a proven concept.
Preconfiguration offers a complete set of best practices that can be selected depending on your HR requirements. By selecting a solution that is pre-configured, you can save implementation time and costs. Make sure the solution is truly pre-configured and not just a template that is imported into a newly created system. Ask your provider how pre-configuration is done and how legal patches on global and local level, and generic updates in the software are moved to your customer solution. This is relevant if you share an environment with other customers, but also if you have a dedicated environment. If you are prepared to accept small changes in the naming of wagetypes, payslip design, and use the implementation to harmonize some of your local agreements, deploying a pre-configured solution will be even faster.
- Flexible services
Do not only look for a cloud solution for your payroll, but also look at the options this solution offers for outsourcing the payroll process. If providers offer running your payroll process in the cloud (a so called BPaaS, Business Process as a Service), you will be flexible in deciding to insource or outsource your HR processes, incl. payroll, depending on how your company develops in the future.
- Global payroll
Look for a solution that can run payroll in all the countries you operate in. A global payroll solution will offer you global reporting and reconciliation possibilities, all accessible via the cloud. It will also give you a single service delivery model, without losing the local variations you might need per country. The payroll process is by nature not a process in which many innovations are expected or even desired. Companies that will manage to connect their cloud HR solutions to a solid payroll engine, will however be successful with payroll in the cloud!