Future Of Payroll: 7 Trends to Watch

If anything, the pandemic has led to an emergence of the gig workers. Hiring and training full-time employees have also become more expensive for organisations, especially in the time of crisis like we are currently facing. Thus, managing the contractual workforce's payroll will assume tremendous importance.

The payroll system must be equipped to handle the rising number of gig workforce while also blending it well with the full-time employees. 

Improved Data security

In recent years, new laws require payroll software to be GDPR (General Data Protection Regulation) compliant. This essentially means that any sensitive data will be automatically protected by the highest cybersecurity standards and applied to all geographies.

While choosing your payroll software, ensure that it is GDPR compliant so that your data is protected by processes like dual authentication to access highly sensitive data like employees wages, addresses, account numbers etc. 

Introduction of pay transparency

While this trend may take some time to catch up in India, it is slowly becoming popular among the western countries. Where organisations are making wage and salary data of employees more accessible to people. Right from the lowest ranks to the most senior executives. This means that people will be able to see how much people get paid and why they get paid that way.

For this to work, businesses would have to explain how they devise their pay structures, how they decide on bonuses and hikes etc. This transparency will eventually translate into equal pay and unbiased treatment towards everybody. Employees will know that their hard work will directly correlate to the raise they receive, eliminating any bad blood.

Inclusion of financial wellness

Just as businesses have started to focus on physical and mental wellness for their employees, especially post COVID, they are starting to realise that financial wellness is also an important aspect that lends to overall employee well being. 

Not surprisingly, higher employee engagament leads to higher productivity. The current crisis has also driven people to become a lot more anxious about their finances and having professional help to manage their finances would go a long way in alleviating their stress levels, hence helping them become more productive.

Organisations have started to include financial wellness in their packages which may include financial counselling, how to plan for retirement, different types of tax saving schemes available etc. 

In Conclusion

The payroll landscape is changing as advances in HR technology gain strides. But, is your organisation ready to keep up with the payroll trends? 

Companies like Bamboo HR, Cake HR, Darwinbox offer advanced payroll software that is GDPR compliant and simplify payroll processing to a great extent. By automating input gathering, providing powerful security systems and clear reporting styles, these HR Tech have definitely removed the pain from payroll.