Secure Payroll in the Cloud: Why The Right Technology Partner Matters

Automated and integrated payroll services are available through cloud-native platforms. How can companies select the right partner to overcome security concerns and modernise?

Many payroll operations don’t enjoy the benefits of next-generation technologies such as single-truth data, automation, employee self-service and artificial intelligence, including predictive analytics and large language models.

Concerns about security, compliance, and confidentiality tend to keep payroll services as they are. Despite all the drawbacks of older payroll systems, companies take comfort in a sense of control. They know what systems they use, where their data resides, and who has access to their processes.

These considerations often surface when it comes to cloud technologies. During 2024, high-severity cloud security alerts tripled; there are many circumstances where cloud services are not automatically safer or more secure. Why risk one’s payroll?

“We’ve worked with many clients across the world to upgrade their payroll. They often share the same concerns. They worry about the safety and security of their data. They are aware that automation and integration projects have the potential to fail. Unless they get proper assurances, they would rather stick with what they know,” says Sandra Crous, Managing Director at Deel Local Payroll, powered by PaySpace.

When Cloud Security Works

Internal or on-premise payroll might seem safer than a cloud-native payroll platform. Yet, unless the company has a robust security team, strong security protocols, crucial certifications for data security and integrity, and disaster recovery plans, its payroll is even more vulnerable.

Businesses bank on this false sense of security and miss out on next-generation payroll improvements that will save money and increase productivity. However, the right payroll platform partner can both reduce risks and deliver modern advantages such as time-saving automation, Crous adds:

“We won’t stay in business if our customers don’t trust us and our cloud-native platform with their data and processes. So, we invest constantly in security and the relevant certifications. A breach will damage their operations, but it can completely destroy our business and reputation, so we take these things very seriously. In return, our customers get modern security features and massive productivity gains, such as automating payroll processes and providing secure access to payroll data to other departments.”

Evaluating Payroll Platform Partners

 If companies want to overcome security concerns and modernise their payroll systems and processes, they can evaluate a payroll platform provider using the following criteria:

• ISO 27001 certification: An international standard to implement, maintain, and improve Information Security Management Systems for superior data security.

• SOC 1 and SOC 2 certifications: Service Organisation Control (SOC) certifications cover financial controls, security, processing integrity, confidentiality, and privacy.

• Data encryption: The payroll data is encrypted where it is stored (at rest) and when it is transferred (in motion), so the data remains inaccessible even if someone steals it.

• Multi-factor authentication: The payroll platform provider implements layered security, including multi-factor authentication (MFA)—a potent countermeasure against common cybercrime credential theft.

• Logically separated customers: The platform provider utilises authorisation and security policies to ensure that each customer’s data is kept separate from that of other customers.
• Permissions and Administrative Controls: Administrators can define security roles and attach users to them, restrict or allow user access to specific areas, and grant access to organisational units.

• Audit trails: The platform maintains application-level audit trails for access, tracing issues, and monitoring performance.

Organisations don’t need to hold onto their legacy and manual payroll software. They can enjoy the benefits of modern payroll services, from automation to self-service and AI. The key is to choose a payroll platform partner that demonstrates a strong commitment to security and compliance.