SMEs avoid cloud payroll solutions over security concerns

Cloud dollars

Small and medium businesses are avoiding using payroll and HR management solutions in the cloud due to security concerns, according to a new report.

The study from Breathe finds 22 percent of teams are not utilizing payroll solutions, instead opting for time consuming and error-prone manual spreadsheets, a surprising outcome.

In addition 11 percent say they rely on manual timesheets to manage and calculate payroll. Over a third (37 percent) of respondents say they spend around 12-17 hours a week managing payroll with the average being 14 hours per week -- the equivalent to 87 working days a year.

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Over half (51 percent) say they don't use cloud-based software for people management due to security concerns, with budget constraints (28 percent) and lack of training (19 percent) also listed as reasons.

Jonathan Richards, CEO at Breathe says:

Payroll is possibly one of the most important functions of a business. If you’re not paying your people correctly and on time, then it will be near-on impossible to foster a positive company culture with a team of people who are motivated.

It is shocking to see how far we still have to go in stopping time consuming spreadsheets for payroll and ensuring SMEs are investing in cloud-based platforms. By taking the burden off payroll and HR teams through using software for tasks such as payroll, they will have more time to spend on what is ultimately the biggest asset to their companies: their people. With accredited and security-complaint solutions on the market, it's time for SMEs to ditch the spreadsheets and harness the cloud.

The full report is available from the Breathe site.

Photo Credit: ImageFlow/Shutterstock

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