Small businesses are actively investing in change to drive agility, resiliency, and growth. But what is the best way to make change happen? Which investments provide the biggest bang for the buck? How can businesses ensure that cash flow is closely aligned to growth?
During periods of growth, small businesses often get bogged down in administrative tasks and aren’t sure how to best control the escalating costs of human capital administration. The limited personnel assigned to HR and payroll tasks become quickly overwhelmed by the increasing number of demands and changing compliance requirements. Processes quickly break down and business risk increases.
To relieve the burden of labor-intensive tasks and increase accuracy, many businesses consider adopting an in-house or cloud-based HR and payroll solution. An in-house licensed solution will require capital expense as well as other up-front IT investments. On the other hand, adopting a cloud-based system by subscription or “pay as you go” model allows the business to lower their total cost of ownership and conserve cash for investing in growth rather than back-office overhead.
Let’s explore some reasons why adopting a cloud-based HR and payroll system can help you leverage the advantages of technology while preserving cash flow so you can focus on growth.
Ensure a bigger bottom line
To better manage and even increase your cash flow, experts recommend monitoring and documenting processes, cutting costs, examining payment processes, and avoid buying new equipment among other things. Adopting a cloud-based HR and payroll system not only eases the burden of labor-intensive tasks, it also emboldens smooth operations and provides data that can be used for strategic reports and insights.
According to Sierra-Cedar’s 2019-2020 HR systems survey, businesses with regularly updated HR systems strategy see 10% higher business outcomes than those without. A cloud-based subscription solution provides that consistency since there are no upgrades to purchase and all updates are handled seamlessly by your solution provider.
HR and payroll transformation made possible through the cloud
Manual administration is time-consuming, difficult, and prone to error. There are many negative impacts of labor-intensive manual processes including productivity issues, payroll errors, fines and penalties due to noncompliance, and missed business opportunities. That’s why more businesses are choosing cloud-based solutions to improve HR and payroll processes while conserving cash for investing in growth and customer-facing headcount.
Using cloud-based HR and payroll, businesses can expect more value from these professionals. According to Mercer insights, HR transformation means leveraging cloud-based technology to support both service delivery and customer experience. Employee data is centralized and many activities are supported by self-service, freeing HR and payroll staff to focus on strategic work.
4 ways cloud HR and Payroll conserve cash
If you’re considering cloud-based HR and payroll solutions purely from a cash-flow perspective, here’s how they can help you better manage and increase your cash flow:
Get up and running quickly. When you choose a cloud-based HR and payroll solution, there is no physical hardware to install or setup to accomplish. Cloud-based setup requires no programming and enables rapid integration so you achieve fast results with minimal administration needs.
Control your cash flow and budget with predictable costs. With a subscription solution, there is no need for major capital investments—your solution provider takes care of hardware, maintenance, and upgrades. Monthly subscription fees are predictable and much lower than license fees—plus you’ll never have to worry about unexpected upgrade costs.
Minimize IT support costs. With cloud solutions, there is no need to buy and maintain servers. You won’t need an IT staff to help support the system either. You also won’t need to install software updates. Instead, updates are handled by the vendor, resulting in lower operating costs and a lower total cost of ownership.
Scale quickly and easily to meet changing business needs. In a subscription model, your business can readily adapt to changes as you increase or decrease the size of your workforce. You don’t have to invest in expensive hardware—simply request to add or remove capacity to meet varying workload demands. With Asure , businesses can scale to 1000+ employees without expensive upgrades.
Indirect ways cloud solutions help maximize cash flow
There are many other indirect ways that cloud-based technology helps you save. HR and payroll solutions work to support a stronger workplace culture and increase employee satisfaction. This helps increase productivity and attract top talent. Using self-service, your HR and payroll solution serves as a central hub for employee communication to ensure your workforce is always in the know. Plus, employees have access to more company data and information which helps to build trust. Your HR staff also have better visibility into employee needs and preferences so they can make informed decisions about benefits and ways to hire and retain top talent.
Cloud-based HR and payroll solutions also help your business keep your cash flow focused on growth because:
Employee data is centralized which leads to lower operational costs and increases in efficiency.
Accuracy and compliance are maintained so your business avoids costly errors, audits, and penalties.
Complex business processes and systems can be easily integrated to improve productivity.
Data security is maintained because you can control who accesses information from one centralized secure location. Information is protected from physical emergencies and you can control who accesses what information.
Invest in growth, not back-office overhead
If your business needs a HR solution that meets you where you’re at, Asure can help. We offer HCM software t
hrough a subscription model that allows you to save cash and invest in things that drive growth. We also offer three different levels of HRaaS support for any size organization.