Technology is forcing organizations to change the way they are doing business. It wants them to be more agile, be it in manufacturing products or delivering services. Well, payroll management is no exception.
Every year, the government levies billions from business owners as a penalty for their payroll errors. In order to eliminate such fines and reduce mistakes, organizations must find ways to optimize their payroll process. Besides, payroll will be more people-centric in the future. Hence, businesses require leveraging cutting-edge payroll technology and follow market trends.
As we are sailing into 2020, knowing the trends that will shape the future of payroll management can help you stay ahead of your competition. This article reveals the top trends that you must look out for in the payroll space.
Top 7 Trends that will shape the future of Payroll Management in 2020
- Adhere to Compliance
Earlier, businesses were restrained from hiring people located in the same town or city because every locality had its own labor laws and tax regulations. But with modern companies embracing payroll management software, their ability to hire people from all over the world has strengthened. That’s because payroll software is data-driven and has the power to access all the necessary information required to maintain compliance.
Moreover, the payroll software easily adapts to the frequently changing tax slabs, tax rates, and regulations that ensure that business owners maintain a spotless compliance record for employees across all the regions. Thus, one of the biggest trends in the world of payroll will be payroll systems that are GDPR-compliant.
- Maintain Pay Transparency
Pay transparency is soon going to be the norm all over. Businesses have already put their foot forward towards considering everyone on the same level irrespective of their age or gender. They never miss a chance to showcase this move of theirs to the general public.
What businesses can do to promote pay transparency is that instead of guaranteeing that payment and wage levels will be maintained private, employers must share the information about the salaries being paid for different roles within the organization with the team. Explaining how the salary structure is devised and getting feedback on how it can be optimized proves to be a good thing for the employees as well as the organization. This leads to reinforcing employer brand and communicating values of truthful pay and quality.
- Adapt to Cloud-based Payroll System
With the advent of cloud-based payroll software, organizations have benefitted in tackling several critical issues. Right from handling every aspect of the payroll process from a single dashboard to viewing or altering the payroll from anywhere, the cloud-based payroll system has rendered power to the payroll department.
Right from handling every aspect of the payroll process from a single dashboard to viewing or altering the payroll from anywhere, the cloud-based payroll system has rendered power to the payroll ….
Moreover, it scales as the business grows. So, organizations need not worry about replacing the payroll system as they grow. Besides, it enables employees to check their own working hours and request pay-offs as and when needed; thus, avoiding any inconvenience.
- Leverage HR Technology
While many businesses are under a misconception that an HR system is too expensive, the ones that have deployed one believe that it makes business processes more efficient and useful than ever before. And, the integration of HR system and Payroll can take the business operations to new heights.
As an HR system makes time tracking and scheduling easier, integrating it with the payroll process helps eliminate any errors or fraud in collecting an employee’s leave and attendance data. Moreover, integrating payroll platforms with conversational chatbots help employers answer any employees’ queries instantly.
- Shift to Gig Working
With millennials transitioning from one role to another quickly, gig working is making its space in today’s workforce. Convenience and flexibility are two valuable benefits that people nowadays seek from employers. Freelancing and contract-based jobs are becoming more lucrative as it enables people to customize their schedules.
This increasing importance of gig working reveals the need for centralized payroll solutions. It might happen that the freelance space will exceed the traditional work culture. In such a scenario, there will be a need for combining a worker’s multiple jobs and also their earnings into one form of a weekly or monthly paycheck.
- Payroll Automation
Doing payroll manually is prone to human errors. Such errors can adversely cost a business. Moreover, the manual payroll process is time-consuming. Thus, it is imperative to embrace payroll automation. It makes calculating hourly wages and basic salary easier. Furthermore, it frees up your payroll team from going over countless spreadsheets every time you need to pay the employees. Payroll automation even simplifies the calculation of tax deduction.
- Provide Financial Wellness Programs
When you integrate your HR with Payroll and Employee Benefits, providing a financial wellness program can be the best bet. Many large enterprises have already implemented such programs and gained immense benefits. Providing your employees financial counseling can rest assure that they are making the right decisions with their money. This not only helps them boost morale but also make them feel that they are working for someone who cares for them.
The above payroll trends will not only shape the future but also make the lives of business owners as well as employees easier. Implement them correctly to drive growth.