Many organizations were compelled by the pandemic to examine their current business procedures, particularly HR-related ones. While some business functions and processes were strengthened, others underwent renovations, and some were completely redesigned.
The “new normal,” which includes things like work-from-home, work-from-anywhere, hybrid working models, gig workers, and of course, their wages & salaries, is what HR teams are dealing with now that the worst appears to be over.
Technology is assisting HR teams in streamlining their various tasks and maximizing their efficiency, just like it does for other business functions. The Payroll Management System was one of the crucial HR processes that had already begun to experience a technology-driven transformation before the pandemic.
An efficient payroll management system and payroll outsourcing are now essential tools for any modern organization. In addition to ensuring that the employees are paid on time, it also guarantees that the HR team can effectively carry out its primary duties.
However, payroll management systems and payroll outsourcing are likely to develop further in the years to come, just like every other business activity and function. Here are five payroll trends that will probably intensify over the next few years.
The Next-Gen Payroll Management System is closer than you think.
Robots were once considered useful in manufacturing facilities and on sales floors. This was the world before robotics, automation, and artificial intelligence (AI). These potent tools will be included in the future’s next-generation payroll management system, making managing payroll much more effective than it was today.
According to a 2020 Deloitte Global Payroll Benchmarking study, 15% of the organizations surveyed were already successfully managing their global workforces with the help of a next-gen payroll management system. In the next two to three years, another 49% were likely to change.
These cutting-edge technologies will not only make the payroll management system super intelligent but also be able to spot and stop payroll fraud!
The future lies in a cloud-based payroll management system.
By 2026, the market for cloud services is anticipated to reach more than $13.3 million. The main benefit of cloud-based services is how simple it is to access data from any device, and you can do that from anywhere in the world. A cloud-based payroll management system will prove to be beneficial as newer employment models like gigs, work-from-home, hybrid, and work-from-anywhere gain popularity.
The Cloud-based Payroll Management System will be safe and probably prevent fraud and unauthorized security breaches as well as simplifying life for employees and HR teams. Additionally, as your business expands, the need to upgrade your IT infrastructure is probably eliminated by cloud-based payroll outsourcing.
The cloud-based payroll management system can expand and change along with the business as its size and its needs increase.
HR data will help resolve and even prevent issues.
Data is essential for every successful business. The ability to gather better information and make better decisions is directly correlated with data volume. The enormous amount of data gathered from the Payroll Management System will aid organizations in charting the appropriate trends and anticipating the likely future employee pain points as their scope and size increase.
When this data is analyzed, businesses can use it to make smart choices that will benefit them in the long run.
Payroll outsourcing will become necessary due to flexible working.
Not all businesses or departments within organizations will accept flexible working. However, some businesses and parts of certain organizations will undoubtedly proceed in that direction. The introduction of flexible work policies will lead to an increase in payroll outsourcing. Businesses that recognize these flexible working options will have a competitive advantage over their rivals because they can access the world’s talent pool and hire the best candidates. In such circumstances, a technology-driven payroll management system will prove to be a boon, making it much easier to manage teams across continents.
New regulatory changes will be introduced.
Recently, The New Labor Rule in India is encouraging a 4- day work week as well as Europe began experimenting with a 4-day workweek to support employees’ ability to maintain a healthy work-life balance. In order to manage their employees’ work-life balance and to adhere to local laws, businesses will test out these newer concepts. A technologically advanced payroll management system is useful for decision-making, analysis, and experimentation with newer formats by an organization.
The payroll management system of the future, in our opinion at CAnest, will not only be intelligent but also evolve! It will adapt to the shifting demands of organizations and all of their various departments, particularly the HR team.
That is one of the main justifications why some of the most renowned companies rely on CAnest for payroll outsourcing or optimizing their payroll management systems.