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Uncover the 3 myths about moving payroll from on-premise to the cloud

Posted by: The ADP Team on 7 January 2020 in Payroll

We all understand that moving payroll to the cloud is the trend and has the potential to bring us many advantages. But when it is time to make the real change, many questions will come to our mind:

Is it really a better choice for us?

Will the cost be reduced or increased by moving to the cloud?

How can I know our data is secure in the cloud?

Well, having concerns about the unknowns could be part of our human nature. Gladly, research in depth and reliable figures can help us to uncover the myths.

Myth 1: Cloud solutions cost more

Your company might be unsure about the true cost benefits of moving payroll to the cloud, but apart from an initial investment and some increased operating expenditures, almost all of the associated costs become the responsibility of your cloud service provider.

Let’s take a closer look:

The truth:

15%-35% average savings made by companies that move payroll from an on-premise solution to an ADP cloud solution[1].

Myth 2: Cloud solutions take away control

Your company may be concerned that moving in-house payroll to the cloud would mean giving up control of its payment processes but, in fact, what it really loses is many of the burdens of having to run and maintain highly complex and labor-intensive systems.

Let’s take a closer look:

The truth:

2x higher error rate for on-premise payroll solutions compared to cloud-based solutions[2].

Myth 3: Cloud solutions are less secure

The security of your company’s confidential payroll data is mission critical, which is why many companies fear that storing this information off-site in the cloud would make it less secure than keeping it on-site. In practice, though, the opposite tends to be true.

Let’s take a closer look:

The truth:

 “Cloud service providers know that their reputation, as well as their clients, depend on ensuring that the very highest levels of encryption and security are in place.”

—Andy Hone, Business Consultant, ADP

ADP has hosted a webinar to discuss about the various factors that you’ll need to consider when moving payroll from on-premise to cloud. During the webinar, Cargill also shared their first-hand experiences of moving payroll to the cloud and lessons learned along the way. Register here to hear our conversation!

[1] Source: ADP Payroll Unplugged
[2] Aptitude Index Report, Payroll Systems 2018. Source: ADP Payroll Unplugged
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TAGS: Payroll payroll in the cloud

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