Latest Trends in Payroll Management

Last Updated on May 20, 2021 by MoneyVisual

Introduction

Payroll services are important for any business. They not only manage your payroll but also ensure regulatory compliance and protects you from IRS penalties. With growing business demands and a fast-changing regulatory environment, payroll services are evolving their offerings. Some of the latest trends in payroll management services are discussed below:

Increased Use of Technology

Payroll management systems are likely to make greater use of technology and evolve into more efficient systems. Cloud technology is going to be a key driver of payroll systems in the future. The cloud-based payroll management market is estimated to grow to $13.3 million by 2026.

A cloud-based payroll system allows you to access data from any device on the go. Work from home may become more popular and common in the future. In such a situation cloud-based payroll system can help managers to work remotely. These payroll management systems offer protective services like cybersecurity and software updates to keep your data secure.

Artificial intelligence (AI) will also make payroll management systems more intuitive. It can perform the more routine task more efficiently and make the tasks of managers easier. AI-based systems can collate and analyze large quantities of payroll data and help you make informed decisions. AI chatbots can resolve the more routine queries of the staff in the future.

Integration with HR Technology

Payroll and HR are two different verticals, but they are interconnected. Integrating payroll and HR software can yield numerous benefits and unlock synergies. HR managers can extract all key information on HR and payroll management from a single source.

Combining HR and payroll management can provide improved functionality and efficiency in managing employee data. Payroll service providers are now offering HRIS (human resource information system) that can track time tracking and scheduling. Integrating the HRIS into the payroll system can help share this data across systems.

Demand from the Freelancing Sector

Technology has enabled a boundless workplace. Working from home can become the new normal in the future. Technology has also led to the expansion of the gig economy. Most of the traditional payroll systems are not well-equipped to manage the demands of the gig economy.

Going ahead, these payroll management systems will need to evolve to meet the needs and ever-growing size of the freelancing sector. You can easily manage these freelancers hired by your organization through such payroll services.

Inclusion of the Financial Wellness Program

Your staff should be financially secure and healthy to work dedicatedly. You can improve their productivity by keeping your staff engaged and motivated. Companies are realizing that simply paying their staff fairly is not enough. They should be a part of a financial wellness program to make them financially independent and secure in the long run.

Payroll service providers have started including financial wellness programs for staff in their services. They provide financial counseling to the staff to plan their financial freedom. This ensures that the staff stress less about their future and work with more commitment.

Employee-Centric and Transparent Payroll Systems

A good payroll management system should be transparent and employee-friendly. Payroll services are putting efforts towards evolving a more transparent system. Such a system can help the employees understand the different components of their salary easily.

They can understand how their pay has been worked out. This can promote a sense of fairness and equity among the staff. It also helps to emphasize the value of a company’s culture in terms of fair treatment and pay. This can promote your brand and motivate the staff to work with dedication.

More Emphasis on Data Security

Data security is an important element of a successful payroll management system. There is much confidential information included in payroll management like social security numbers, salary details, tax details, etc.

These data should be managed securely by any payroll management system. If such confidential information leaks out, then it can lead to penal issues and actions on your business.  Payroll services are likely to emphasize more on data security in the future.

Data servers need to be made more secure and protected from natural disasters to ensure better data security. Payroll management should also be GDPR-compliant. This ensures that any confidential information entered on it is protected by the best security standards.