We are way past the recovery phase from the COVID-19 impacts – businesses are doing better than simply recovering. According to a survey, organizations have spent a record-breaking $4.3 trillion on acquisitions and global mergers this year. This is the second-highest record compared to the numbers from 2015 of $4.8 trillion. Global expansion has been crucial for companies in opening the doors for potentially lucrative new markets. In addition, in today’s market scenario, global expansion is even more compelling as it relieves businesses from supply chain problems and labor shortages. However, overseas expansion isn’t simple – it comes with new challenges. A self-explanatory one is a payroll. Payroll processing for small businesses or giant companies is almost the same – in simple terms, it is the process of paying your employees. This incorporates calculating salaries, withholding taxes and other deductions, and issuing payments. To the benefit of businesses worldwide, technology has infiltrated payroll processing in recent years, bringing flexibility in pay and innovating time reporting. This seems upright for companies struggling through their human resource processes and payroll management. Let’s have a peek at what is waiting for payroll in the future.
The Future of Payroll
We witnessed several changes in how human resources operate over the recent years, yet from the payroll point of view, it pretty much stayed the same. However, with new evolutions, payroll is waking up to the digital revolution. The introduction of automation and other technologies has bought an entirely new approach making things more exciting and attractive. In today’s fast-paced world, the approach is to do more with fewer resources. Payroll modernization holds the ability to deliver excellence to companies. Transforming your approach to remunerating can help you attract, bring, engage, and retain top talent and drive greater operational efficiency.
Robotic process automation (RPA) has been a game changer for payroll processing, introducing cost savings and automating manual entries and payroll runs. Nevertheless, payroll automation is still in its infancy, but the next advancement will be real-time pay. Let’s take a look at 5 payroll trends that are likely to shape the future of payroll.
5 Payroll Future trends – Payroll in the coming years
Here are five trends to anticipate in the future of payroll.
Increased Use of Cloud Technology
Cloud technology has been on the hype for the past few years – almost every organization has brought their operations to the cloud. So, why not payroll processing? Cloud-based payroll management software not only helps you stay compliant with these regulations but also helps handle tax compliance with ease. Moreover, the integration of cloud technology empowers HR managers to view and modify payroll from anywhere, anytime, incorporating flexibility and cost-effectiveness.
The cloud-based payroll software market is anticipated to reach over $13.3 million by 2026.
According to a survey, 57% of organizations have already embraced cloud technology for payroll processing, while 27% are planning to implement a cloud solution. Additionally, with the emergence of remote and hybrid work cultures, it has become more crucial for HR teams to process payrolls remotely. This has made cloud systems the perfect fit for global payroll processing.
Embracing Artificial Intelligence
We’ve all heard a theory of robots taking over the world someday. While the assumption may seem a tad far-fetched, the indication of machines replacing humans is becoming more apparent – and artificial intelligence is to blame. The concept isn’t new to all of us. AI is slowly and steadily seeping into all sorts of businesses and departments – and the payroll industry is no exception. Several organizations are embracing AI-driven tools for storing and managing payroll data with ease. In addition to leveraging the power of AI, many companies are also incorporating AI-driven chatbots that free up time for HR and payroll teams. Likewise, smart reports are also becoming popular, notifying the concerned teams whether there are input errors and anomalies within their payroll. With AI getting more intelligent with time and the increased access to global payroll data, the user experience, data and analytics, and support improvements are only going to get better. As a result, in the near future, AI-driven payroll systems will bolster the role of payroll processing teams.
Integration of HR Technology
You might think of HR and payroll as two distinct disciplines, but essentially, they are connected and come under the same umbrella. Integrating HR software and payroll can help professionals access all the employee information they need from a single dashboard. Moreover, it increases efficiency in managing and maintaining employee data. It is also imperative for HR managers to ensure that employee data is protected and can be easily accessed for future reference. With labor laws getting increasingly complex, it is always beneficial to have essential data handy. With the help of HR technology, you will not only be able to reduce payroll errors but also effectively store past payroll data securely on the cloud. Get a technology you can grow with.
Improved Data Security
The pandemic has essentially been a great learning experience for different aspects of a business. One of the key lessons concerning payroll was being able to access consolidated, real-time payroll data for globally situated teams for tracking global payroll costs and making more informed decisions. However, centralized data asks for more integrated security. In recent years, according to new laws, payroll software needs to be GDPR-compliant. This limits how the data can be used. Every organization out there holds massive volumes of sensitive data such as account numbers, social security numbers, wages, addresses, and more. New advancements such as two-factor authentication help access such data securely.
Bank integrations for secure and faster payments
Banks and company payroll software are two different entities for many organizations. This leads to a higher turnaround time as the payroll software has to be coordinated with the bank to process payments. With new technological advancements, payroll systems and banks are more likely to work in tandem to make the payroll process simple, more effective, and time-saving. In the dynamic wages industry, faster payments have become more of a norm than just an option. The bank integration significantly improves operational efficiencies, cash flow management, and customer engagement with reduced settlement time, less clearing time, and greater data transparency.
It’s a wrap!
As you see, there are several technological advancements ready to streamline your payroll processes. However, considering the stringent budgets and stiff market situations, businesses can’t afford to invest so much in just the payroll function. This is where businesses like yours can benefit from engaging with third-party payroll outsourcing services like Exela HR Solutions, a leader in global payroll processing and compliance. Get in touch with the Exela HR Solutions team to integrate new payroll trends in your payroll processing. Get Exela HR solutions today and transform your end-to-end HR processes!
DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.