Important Payroll Industry Trends to Monitor This Year

Important Payroll Industry Trends to Monitor This Year

Keep your best employees with you by paying proper attention to activities happening in the payroll industry. 

In the meetings with hundreds of clients, vendors, prospects and consultants from all around the industry, we came across many issues, challenges, frustrations, requirements and visions that keep on aggregating to help shape the dynamics of global payroll systems. 

Many organizations fail to use the Payroll software and get away from the benefits of using such. However using multiple systems along with payroll software can be beneficial and bring value to the organization. 

In this article, we will distill various concepts and ideas directly from the trends and projections we see for the upcoming year. 

Important trends to be monitored this year

Increase in use of cloud technology

  • An assumption shows the growth of the cloud based payroll software market till 2026 over $13.3 million. The cloud based system allows access to the data from any place and through any device. 

Integration of HR technology

  • Apart from being different disciplines, the Payroll and HR management are connected to each other. There are numerous benefits associated with this integration. At the starting point, the integration will be enabling staff members or managers to access the essential information through a single dashboard. 

Increased gig economy demand

  • Technology allows people to work from any place that has resulted in a rise in the growing number of gig workers and freelancers. 
  • The modern economical shift right from the traditional one and full time employment to the mixture of third party people has made the situation complex. Hence the old systems are not capable enough to handle the diverse and dynamic workforce. 

Included financial wellness

  • The retention rate is directly proportional to the satisfaction of employees. If you wish to increase the productivity of the employees, you need to keep them engaged and motivated. Many of the employees get distracted from the work due to their problems with their financial well-being. Additionally, extreme stress can also lead to both physical and mental illness. 

Transparent payments

  • Many organizations focus on making the salary and wage process more accessible and transparent. This step is for the salaries of employees’ right from the executive class till the part-time workers. Explaining the employees the methodology behind what they are paid and how they get paid promotes the feeling of fairness and equality within the organization. 

Data security

  • As per the new laws in the past few years, the payroll software needs to be GDPR-compliant. It derives that any sensitive information that is entered into the system will automatically be protected with the highest cyber-security standards from the cyber-attacks. 

 The new normal: mobile and remote

  • The massive skilled desk less employees have finally encouraged the business to acknowledge them with the significant workforce they provide. It also results in competing with the lack of control, visibility and interaction with their workplace. 
  • The advanced mobile apps have become critical for meeting the self-service needs of the mobile, remote and desk-less employee. Modern user-interfaces and the non-intrusive data capture are opted as the best solutions. 

 Smooth integrations

  • A unified platform provides uniting disparate systems but the advance integrations complete the job. Disrupting the existing ecosystem can be messy and expensive. Combining multiple systems results in better productivity and maximum benefit out of the organization.

Implementation of artificial intelligence

  • The films showing the replacement of humans with machines or robots may seem far from the reality but the fact that some industries have actually replaced humans with machines cannot be ignored. 
  • Artificial Intelligence is popular in many fields including Payroll providing various advantages. The old payroll software was limited to calculating and paying the wages of employees and generating the slips. But now the requirements have changed and the future requires more.The AI automates and makes sure that employees are in the correct tax brackets. 

 Keeping track of employees

  • It is important to identify the top talent of your company and retain them to keep the company rank up in the charts of all indices. Continuously monitoring the data results in the metrics of every employee and compensating them properly. 

 Internationalization

  • Companies that keep growing and expanding are the ones that get successful. Once a company succeeds in one country, it starts moving to another one. In modern times, the companies focus on multiple countries at a time and keep growing simultaneously. The point at which they reach a significant size and scale, they maturely process and structure. 

Software adoption

  • Integration, support and scalability are three important factors for the payroll implementation. The integrated payroll software offers a centralized database and collaboration among multiple platforms. Keep it simple: Get a system that helps you grow but don’t get more than the one you need. 

 Cost reduction

  • The one time investment in the payroll software reduces many of the other expenses. The increasing cloud computing and innovations bring out the new payroll services that further increase the efficiency of products with reduced costs. It also reduces the costs associated with the processing and administration work. 

So finally the question that arises is; whether your company is ready to accept the technology and adopt the payroll system?

It is a fact that technology is revolutionizing business activities. All of us believe that accepting a new technology is a challenging task but also once you select the correct software, you will be benefited with the features bringing the most to your organization. 

 Conclusion

The payroll systems are principal in any business organization that needs streamlined compensation processes. The software must to move forward from the basic definition of wages and works. The new technology is introduced to adapt the changes. In the modern times, automation and standardization is essential to run business. 

These were few trends to monitor the importance of payroll industry in the current year. We hope these points were helpful and we were successful in solving your query.

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