2026 Workforce Possibility Report
Why delaying cloud migration is already holding organizations back
About the report
The cost of waiting is higher than most organizations realize
SAP on-premise payroll support is coming to an end. But Strada's research reveals something more pressing than an end-of-support date. The bigger challenge isn't migration, but delay. Organizations running hybrid or on-premise infrastructure are already at a measurable disadvantage compared to fully cloud-based organizations, across every metric that matters.
Strada surveyed senior leaders across HR, finance, operations and technology in seven countries, uncovering exactly what the cost of delay looks like - financially, technically and strategically – and why a well-managed, payroll-first move to SAP SuccessFactors is so important.
“The cost of waiting is no longer theoretical. It’s already showing up in business performance.”
Raul Camacho Director, SAP Global Alliance, Strada
Key findings
Here’s what 405 senior leaders across 7 countries told us about the real cost of delaying a move to cloud.
1. On-premise organizations are already losing the growth race
Only 30% of leaders are very confident their systems will support growth over the next three to five years - but organizations in fully cloud-based environments are more than twice as likely to be highly confident as those in hybrid and on-premise environments. With support for older on-premise systems rapidly running out, every month spent delaying modernization widens the confidence gap.
of organizations have already moved away from primarily on-premise payroll environments
of hybrid/on-premise organizations are 'very confident' their systems will support growth—vs 49% of fully cloud-based organizations
2. How you migrate matters as much as whether you migrate
Most organizations that have already deployed a major cloud-based HCM platform still run manual backup systems alongside it—a sign of operational distrust. Only around a quarter report significant improvement in the outcomes that matter most. A rushed migration under deadline pressure risks replicating old problems on new infrastructure.
of organizations with a major HCM platform maintain backup systems or manual workarounds
report significant improvement in core outcomes post implementation
“A structured, payroll-first approach reduces the risk of duplicating old problems on new infrastructure.”
3. AI readiness is blocked by legacy infrastructure
Organizations often assume AI adoption starts with technology. But it starts much earlier—with trusted data, connected systems, and consistent processes. Only 24% of organizations are fully ready to use AI for workforce management, and legacy systems are more than twice as likely to be the primary AI barrier in on-premise environments. With AI embedded at the core of SAP SuccessFactors, staying on-premise isn't just a payroll issue. It's a barrier to innovation.
of organizations with hybrid/ on-premise workforce management environments say they are fully AI-ready—vs 47% of fully cloud-based organizations
4. M&A agility depends on infrastructure
Most organizations discover the strengths and weaknesses of their workforce infrastructure during periods of change. Mergers and acquisitions place immediate pressure on workforce operations. When HR and payroll rely on fragmented data, disconnected systems, and inconsistent processes, bringing together people, payroll, data, processes, and reporting from two organizations become much harder - at exactly the point the business needs speed and certainty.
of fully cloud-based organizations rate HR and payroll integration during mergers and acquisitions as good or excellent
of hybrid and on-premise organizations say the same
“Complexity is often only revealed at exactly the point the business needs speed and certainty.”
Key takeaways
Make the case–and make the move.
Whether you're in HR, IT, finance, or operations leadership, this report gives you the data to have the right conversations with your board, and the confidence to act before the deadline forces the decision.
The real operational cost of remaining on SAP on-premise
The dangers of migrating under deadline pressure
How cloud infrastructure directly impacts AI readiness and growth confidence
What compliance, M&A agility, and employee experience look like on cloud vs on-premise
How Strada's payroll-first migration approach protects continuity, compliance, and control
Get the report
