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Top 3 Payroll Trends to Watch in the Near Future
by Eden • Fri, 18 Nov 2022 07:11AM
The payroll management system is being affected by changing workplace culture and technological advances. Watch out for these key payroll trends to keep up and stay competitive.
In the modern business sphere, payroll refers to the routine process of paying employees. But according to Forbes, payroll could also mean a list of employees to be paid and the total amount of wages and salaries.
On the other hand, the whole payroll process involves more than just data or the obligation to send paychecks. It starts with gathering employee information, integrating employees into a payroll system, setting up payments and deposits, tracking working hours, calculating wages, and managing health insurance, worker compensation, and tax responsibilities.
In conclusion, payroll has a crucial role in the business process. Therefore, the payroll management process also has to follow the evolving workplace and emerging technologies that affect almost all businesses worldwide.
A survey from Kronos and the American Payroll Association shows that companies that use manual and outdated payroll processes are facing difficulties in tracking and reporting the company’s key performance indicators (KPIs). This has limited their ability to see payroll’s impact on overall organizational performance.
Modern and digital payroll systems make it easier for companies to build the proper business cases. This will enable the company to secure the investment needed to stay current with today's speed of business. Also, cutting-edge payroll tools can deliver in-depth analytics and enhance employee experiences. These factors can open more doors for improved business performance.
Summed up from various sources, here are several payroll trends to watch this year and possibly in the coming years as well.
The Shift to Cloud-Based Payroll
As hybrid and remote working become a new workplace culture, cloud-based payroll has grown and become more essential.
According to SeeLogic, besides providing a paperless solution, cloud-based payroll also has self-service features that allow managers and employees to access payroll information details from anywhere in real-time.
AI and Machine Learning are Enhancing Payroll
The Global Payroll Management Institute explains that AI-powered payrolls are one of the futures of payroll management. Utilizing facial recognition, chatbots, and other AI features, this system provides more intelligent workflows and smart validations.
Additionally, AI can also help management automate approval and other payroll processes. Payroll processes become faster, more transparent, and more professional. AI helps eliminate human error and increases efficiency.
Payroll Systems Have to Adapt to the Gig Economy
According to Business News Daily, the rise of the contingent workforce, freelance work, and gig economy trends are affecting payroll systems. There is a rising trend for payroll professionals to adapt to a broader variety of worker categories.
Pay periods that are usually every two weeks or every month will change to real-time or on-demand payments. Especially for non-salaried workers or independent contractors.
These trends will require faster payroll processing and the ability to spot and resolve issues quickly. To enable faster payments, a company can utilize mobile payments that are easy to access and available in many options.
In addition, payroll professionals also have to be aware of the challenges of processing instant payments. For example, calculating taxes and maintaining records of paychecks and cash flow.
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