A revolution is currently underway and it’s significantly changing the way we do business.
Technological advances and changing workforce expectations are disrupting established business models and affecting existing business operations in every industry — including payroll.
Already, technology is lending itself to better and more intuitive payroll processes that support a future of work shaped by greater autonomy and flexibility. It is evolving and developing into sophisticated solutions that will improve payroll processes and introduce transformative changes to non-traditional ways of working.
In this article, we examine key trends that will shape the future of payroll.
Artificial intelligence (AI) and machine learning (ML) will disrupt payroll operations
Payroll is traditionally a complex, manual-based process that carries an unavoidable risk of human error, whether in data entry or employee pay. The use of AI and ML in payroll is steadily rising and is set to significantly impact payroll management.
Advanced AI and ML capabilities will offer faster and more accurate classification of employees for payroll calculation, provide insight into workforce efficiency, identify anomalies that impact the bottom line, and help facilitate regulatory compliance.
The growing gig economy will force payroll to adapt
People want the freedom to work without boundaries and to choose projects and clients based on their interests. At the same time, businesses are taking advantage of the gig economy to widen their talent pool, which can be scaled up and down in response to changing goals.
However, payroll becomes more complicated when businesses have a mixture of workers.
Legacy systems aren’t equipped to manage a large, flexible, and dynamic workforce, forcing businesses to consider outside-the-box solutions like an intuitive payroll platform that can manage distributed workforces with different types of contracts.
Demand for flexible pay will grow
Employees now not only have the power to negotiate when they work but also when they get paid.
Demand for flexible and on-demand pay is growing and becoming a key differentiator when competing for talent. Rather than wait the traditional fortnight (or month) for their hard-earned pay, employees could receive their wages outside of the scheduled pay cycle as soon as they are earned.
On-demand pay doesn’t just benefit employees. For businesses, on-demand pay is a no-cost recruitment tool. It reduces turnover costs and creates happier employees. It’s also fast and secure with robust security and multi-factor authentication (MFA), making it impossible for employees to access funds they haven’t earned.
Consolidated, real-time payroll data will be crucial for informed decision-making
As workforces become more distributed and flexible, payroll processes must follow suit and support enhanced agility and responsiveness. Using analytics to gain vital insights to make better and faster decisions has the power to transform operations. However, the benefits of real-time payroll data analytics are yet to be fully explored.
Analytics in payroll can help spot and address fraud, identify consistent errors, accurately evaluate the costs and risks of employing dispersed staff, and support business leaders in formulating strategies for growth. To support the future of payroll, businesses must use payroll data analytics or risk missing out on reaping benefits from the data they’ve always had.
As organizations continue to adapt to the complex demands of today’s digital world, having a cost-effective, accurate, streamlined solution that takes care of your entire payroll operation is invaluable. Those who act fast in leveraging the benefits of a managed payroll service underpinned by the latest technologies will see immediate results, letting them focus on what’s essential: growth and profitability.
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