5 Market Trends To Understand About Payroll System
Payroll technology is changing how HR approaches payroll processing. Payroll system helps HR department to monitor and keep track of employees. As a result, managing the payment of your employees becomes easier and consumes less time. The way your company tackles payroll could make or break the morale of your team. On top of that, failure to prepare payroll effectively could lead to incidences of lawsuits that would eat into the purse of your organization.
Upcoming trends are transforming the way that Human Resource departments tackle payroll functions. The following are 5 payroll trends that numerous businesses have incorporated in their payroll to make it easier for them to process payroll:
Uptake of cloud payroll going up
Nowadays, nearly everything is being done on the cloud. Different business operations can be executed on the cloud, making the shift to the client a very important ingredient that is fueling many businesses today.
And the payroll business is no exception. According to a report published by Allied Market Research, titled, Cloud-Based Payroll System Market by Organization Size and Industry Vertical, cloud-based payroll software was valued at $6,738 million and is poised to hit $10,336 million by 2023.
Cloud-based payroll system technology enhances payroll efficiency and simplifies payroll functions in businesses. With cloud technology, the payroll is automated and therefore accuracy and efficiency can be ascertained. Being a web-based application, it is easier to also access cloud-based payroll information at any time, anywhere. There is no need to purchase expensive network hardware, hire server farms and also perform various IT related tasks and processes that require an in-house IT team. Moreover, HR won’t have to hire IT professionals in order to ensure everything is operating smoothly.
Going mobile with payroll
There is an increasing number of the people using mobile. Today, mobile is facilitating communication between the employees and their employers. The good thing is, employees can use the same technology not only to communicate with their managers and co-workers, but also to pass critical information to the payroll department. Thanks to the advent of mobile technology, most businesses are encouraging their workers to file their expense reports through HR applications like Concur. Using various online company portals, employees can easily share or access hours worked, tax deductions, and any other information that will be used to improve payroll efficiency. All you need is an internet connection for the mobile phones. Thanks to the mobile environment, it is easy for the increasing number of telecommuting employees and freelance consultants log in the hours worked. It also helps them access the payroll system, and confirm the authenticity of the information that will be used to process payroll.
Integrated HR operations
Integration is the talk of the town. Human resource department and payroll system are getting integrated into the accounting systems. Now, the integrated accounting, payroll, and human resource functions make it easy to prepare payroll without burning a lot of time in data entry tasks. Besides, it becomes very difficult to makes errors that occur during the manual transfer of data from one system to another. Thanks to the integrated HR operations, businesses, Human Resources department can focus on team performance, as opposed to individual performance. As a result, businesses are able to maintain better connectivity among the teams, leading to easier employee management.
Rush to tame the increasing cost of compliance
Today, many countries demand a vast amount of information from businesses and other organizations. For example, the GST related information that the governments of these countries are demanding for payroll processing and compliance has been on the rise. Similarly, the new tax laws in the UAE are changing the way business approaching payroll processing. As a result of these developments, you have to report to the tax authorities in real-time when you pay your employees. This means you will be forced to fill your tax information as frequently as possible. Manually performing this work would be a nightmare. Transferring all the data from different operations systems into the payroll processing system is burdensome and prone to errors.
That is why many businesses are going for integrated payroll technology. The software not only adapts as the business grows, but it also helps them consolidate all the information required for payroll processing in one place. With payroll technology, compliance has been simplified.
Data and analytics
We are living in the era of big data. For any business to be successful, it needs to come up with appropriate data-driven solutions that would pave the way for making strategic decisions. Automating the routine payroll activities ensures that your HR department captures relevant employee data. That way, you will be able to know the key areas of specialization, interests, and expertise of different employees. When the employer knows the talents of different employees, it helps to manage them and allocate the right task to the right person.
Summing it up
In a nutshell, HR is continuously growing. And so is the payroll technology. As a result of these changes, different trends are coming up that are shaping the way process payroll. Adopting these trends helps bolster your business efforts to manage your employees, process payments, collect important data and also comply with different statutory regulations.