Future Of Payroll: 7 Trends to Watch

The pandemic has changed the way businesses work. Work from home is now the norm, even amongst traditional sectors. Technology is even more seamlessly integrated with everyday work and people are slowly coming to terms with the new reality. And most of these trends will continue to remain, long after the pandemic is over. 

With HR technology altering the landscape of work, payroll to is undergoing a shift. According to a report, The aspect of Human Capital Management is expected to have the largest chunk with over 20 billion dollars in investment while the Payroll software might be valued at $8 billion. 

Read on to stay abreast with the latest that is happening in the world of payroll and take a look at some of the emerging trends:

Increased preference for cloud technology

The global cloud-based payroll software market is expected to grow over $13.3 million by 2026.

The benefits of cloud technology are not unknown. As work goes remote, cloud-based software makes it easy for HR, managers and employees to access payroll-related functions from home without the hassle of coming to the office to access on-prem solutions. 

Moreover, ensuring a water-tight security system for on-prem solutions is an expensive affair. Whereas, the cloud-based payroll systems already come with layers of security to prevent data leakage of one of the most critical functions of a business. 

Use of artificial intelligence

When you think AI, do you think robots like Sonny? While Artificial Intelligence has us thinking robots will replace humans in every walk of life, it will be a long time if that even happens. Today what AI does in payroll software is simplify the complex process and automate a lot of tasks that saves both time and costs for payroll managers. 

For example, calculating error-free payroll based on different salary structures, generating payslips, gathering inputs from all departments etc. are some of the tasks that can be done swiftly using AI. Not to mention, the tax calculations and the payouts to external agencies also becomes much easier to calculate, thus saving additional expenses of penalties. 

Integration of HR technology

As innovation in HR Tech progresses by leaps and bounds, it has become more affordable and useful than ever before. Integrating your HR technology with the payroll system has made it easier to gather inputs seamless and process payroll within a day. The ROI is also now higher compared to previous generations of HR Tech.

Integrating will also help you track time and attendance better, gather data from travel and expenses module, process off-cycle payroll, track vacation time and other leaves, and much more. In fact, before buying your payroll software, ensure it has certain must-have features.

Moreover, having all the data in a central location will also help generate quick reports and offer actionable insights so you can design your strategy better.

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