Why you should use a cloud-based payroll system

It becomes more common to switch to a cloud-based payroll system, which means that you don’t need staff to take care of hardware and software. You also adjust to today's environment characterized by mobility and flexibility, since you as an HR representative can work from anywhere.

An on-prem system is installed on the servers on company premises, while a cloud-based payroll system is hosted in the cloud, built on software models called SaaS (Software as a Service). They have two different departments, one for admins and one for employees. This allows HR to work with their tasks, and employees to view their salary and other features.

6 reasons to choose a cloud-based solution over on-prem

We believe investing in a cloud-based solution is an investment for the future. Here are some reasons why:

1. Scalability

With an on-premise solution, what you see is more or less what you get, and the possibility to adjust the system to a growing business is limited. One major perk with a cloud-based system is that it is highly scalable. As these solutions are customizable, you will be able to add features along the way as your company grows.

2. You don’t need to rely on a developer or IT expert

When software is installed on company premises, only one or a few persons in IT will be able to solve issues if the system crash. With a cloud-based solution, no software needs to be installed, and there’s no additional cost for maintenance since the vendor provides IT support.

3. One system to rule them all

The fewer platforms you use at work every day, the more efficient you will be. Cloud-based payroll systems have integrative capabilities that combine HR and payroll functions into a unified solution, which streamlines processes while reducing administrative errors.

4. Adjusting to remote work

You don’t have to rely on IT experts, and you're not dependent on company premises with a cloud-based solution. As a result, you can process payroll remote even if the office is shut down, since the information is stored online and, therefore, always accessible.

Not only can you who works in the HR department process payroll, but a cloud-based solution also allows your employees to access their payroll records and other online features from home. Since we’re turning more towards mobile accessibility, it’s also easy to use the cloud to integrate with mobile devices, to make it easy for employees to access their payslip on their phone. Working remote is a trend we will continue to see increase in the future, so this is an important part.

5. Environmentally friendly

With a cloud-based solution, your staff will be able to access their payroll records from anywhere. In the long-run, this can allow your company to reduce its carbon footprint and be more or less paperless. It will be easier for organizational purposes since you have less physical material to deal with – everything is collected online.

6. Data safety

There’s a decreased risk of data loss with a cloud-based solution, as opposed to on-premise tool which doesn’t provide you with regular backup. There may be huge setbacks for your company if your system crash, making you lose valuable employee data.

Kjarni – a cloud-based solution adjusted to Icelandic companiesemployee data

Kjarni is built for Icelandic companies, and, therefore, created to make it easier for classification and ensuring that equal pay is followed through. Kjarni easily stores all the necessary information regarding payroll certification, and results are delivered quickly.

Common concerns regarding cloud-based solutions are the safety of employees and the company’s personal information. We can assure you that Origos’ solution is completely safe, and we use an ISO certified hosting environment. Your information is more secure in Kjarni than it is on a server at your own company.

To get more information about Kjarni and how we work with HR tech, feel free to get in touch with us at Origo.