10 Trends that will Influence the Future of Payroll Management in 2020
A well-thought-out payroll management system can build a distinction in an extremely competitive, candidate-centric job market. Here are the top 10 trends that every payroll manager or business owner should know so as to make a real difference in 2020.
With unemployment levels plummeting and the skills gap widening, employers should go the extra mile to draw in high talent and make sure that they stay with the company. Before perks and engagement plans, streamlining payroll is important for employers, irrespective of industry or size. That’s why we are witnessing a flood of latest technologies that aim to remodel payroll management in 2019. Not only can it make HR managers’ lives easier, reducing manual efforts at month-end, it’ll also position digitalized payroll as a worth add to retain high-performing employees. Here are 10 payroll management trends that can be expected to mature this year.
- Automated Payroll is going to be entirely GDPR-friendly – Payroll automation is based on the concept that employee information is seamlessly accessible across locations and interfaces. The GDPR went into a result within the middle of last year; any new payroll management solution being introduced to the market should be expected to be GDPR-compliant.
- Payroll will be Audit-ready from day one – rather than scrambling at quarter-end or year-end to collate and reconcile payroll data, employers can adopt automatic report generation that enables electronic submission, without any complicated bureaucratic formalities.
- Gig staff will enter your payroll – the distinction between payrolled workers and third-party workers will begin to fade as firms more and more depend upon gig workers. This goes beyond blue-collar jobs, encompassing high-value projects led by knowledgeable consultants and the enlightened ‘digital nomad’.
- Bots can guide query resolution – employees running from one department to another department, trying to induce queries answered from HR Team, finance, or maybe accounts, could be a familiar picture to us all. In 2019 AI-based chatbots (deployed as standalone apps or a part of a bigger manpower service suite) is going to be a standard answer to the current problem.
- Manual Payroll will finally become obsolete – With payroll automation finally changing into extraordinarily cost-efficient also as easy-to-deploy, a larger number of small businesses can abandon manual, paper-driven processes. This may be driven by increasing familiarity with tech and a boom within the payroll solutions market.
- Weekly or Monthly payroll won’t be the only approach – Some solutions have already started rolling out versatile payroll systems that align wages to a particular date each month or perhaps support one-time payments as a part of a company’s regular disbursal cycle. Apparently, this can be absolutely in-line with gig employee requirements.
“Payroll Outsourcing Companies like Relativity are more and more providing alternatives to bi-weekly or monthly pay periods. As an example, Relativity is also exploring a versatile pay model, that permits workers on-demand access to funds while not having to wait until payday, for a small or no-cost”
- Unbanked employees are going to be welcomed – Contrary to standard belief, an enormous portion of the world population remains unbanked, even in developed economies. Platforms like Relativity can facilitate bring this manpower section into the payroll management scope, easing access to the salaries they need truly earned.
- Disbursal is instant – taking off from the widespread popularity of mobile payment applications, payroll management will explore instant payment options, so employees don’t need to wait for a specific time period once their shift/project/seasonal tenue with an organization has concluded.
- Financial wellbeing is a part of the package – By advocating the necessity for financial wellness, employers can ensure their manpower is provided to take care of a particular quality of life and properly utilize their allotted wages. In 2020, financial wellness benefits are a way to drive worker satisfaction without constant pay hikes.
- Pay Transparency will be the norm all over – From guaranteeing that regular payment and wage levels are maintained private, progressive employers can look at sharing salary levels publicly – from white-collar ranks to part-time employees. This will go to an extended approach in reinforcing employer brand, communicating the values of truthful pay and equality.
These are the highest 10 payroll management trends we tend to expect to witness over the subsequent few months. Motivated by large scale digitization on one hand, and a push towards outsourcing the entire payroll process to a third-party agency on the opposite, 2020 is anticipated as the year payroll management will undergo a positive transformation.
Which of those payroll management trends are you hoping to adopt in 2020? Share your payroll management journey within the comments below.
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