Back then, in the 1970s and 80s, there were no tools and technologies especially for payroll processing. But, over time, wage technology evolved, and we see innovations taking the industry by storm.
“The future for a payroll professional is one where they get to do the fun, interesting part of their job—they get to be the expert, and the toil goes away”, says Aaron Goldsmid, Head of Product, Payments, and Integration, Deel.
Companies are taking advantage of these benefits to streamline their processes and manage financial records most efficiently.
They need to adapt to the new changes to stay on top of the game and keep up with their competition.
Read on to see five upcoming innovations in payment processing technology that will continue to shape this industry.
1. Integration Of AI
Right now, one in three firms started investing in artificial intelligence. Nowadays, there is steady normalization of biometrics, intelligent workflows, and smart validations.
Other than that, AI-powered cloud technologies like Face ID or chatbots are responsible for bringing an era of time tracking and pay calculation.
Do You Know? During 2020-2024, the payroll outsourcing services market is poised to grow by USD 5.01 billion at a CAGR of almost 5%.
The administrative department can finally take a break because this has made its day-to-day tasks so much easier.
Managing financial reports, especially in organizations with a hundred or more workers is a complicated and troublesome task. One tiny mistake can set off a whole stream of miscalculations and this in turn will cause frustration among the team members.
With AI automation, managing classifying, and calculating wage and hour information becomes an easy task. Some platforms even have integrated chatbots that can answer standard queries and this introduces an interactive element.
2. Introduction Of Payroll Applications
Folks need to have easy access to their financial profiles so they can make changes to them. Compared to desktops or laptops, these days team members tend to use their phones more often.
Introducing pay stubs mobile applications has made this approach extremely convenient. Now they can update personal details and financial information from anywhere at any time.
Organizations that work with remote workers should consider such platforms optimized for mobiles as well.
3. Cloud-Based Payroll Software
Is your organization still relying on running human resources internally or fragmented record-keeping systems? Well, the smarter choice is to have your revenue-generating activities managed with cloud-based payroll solutions, right?
In straightforward terms, cloud-based software enables you to use the operating system using only an internet-connected computer.
It integrates all the functions like calculation and distribution of their paychecks, improving efficiency and accuracy in one – you don’t need five other systems or teams to deliver each set of information.
Statistics:
In 2021, the global HR payroll software market Size was valued at $23.55 billion, and shortly it is expected to reach $55.69 billion by 2031.
This makes its job much simpler – if your company still uses old systems it is high time to upgrade!
In today’s busy and rapidly changing business environments, time cannot be wasted on meticulous calculations or manual entries.
Upgrading to cloud accounting is almost a necessity, and it is an investment a company should make in the immediate future.
4. Payroll Outsourcing
Outsourcing your company’s payroll management will let your organization focus on business strategy, hiring, and retaining the right talent. Providers are specialized in managing its procedures.
This involves everything ranging from securing sensitive information to regulating compliance.
Businesses might hesitate to opt for payroll outsourcing because of the cost but in reality, outsourcing is the least expensive option. Managing human resources in-house can get complicated and pricey, especially with tax and compliance issues to take care of.
Entrusting management in the hands of a professional will take the burden off your company, make the operation run more smoothly, and give you peace of mind.
Interesting Fact: In the 5th Century, 7000 BC, the Greeks kept records by chiseling the information into stone. It was the earliest recorded payroll.
If chosen wisely, it ultimately offers a highly efficient approach to paying employees, managing tax filings, and handling numerous other functions.
5. Cybersecurity
Poor cybersecurity for your system can lead to catastrophic consequences. The issues that could potentially arise are serious – be it financial fraud, leaking of sensitive information, or identity theft.
A few basic security measures include teaching workers to use their accounts properly and performing regular updates.
You can have a professional analyze your system to check for shortcomings in security or suspicious activity.
Partnering with providers that guarantee privacy and security is also one of the best decisions you could take to ensure the safety of all necessary information.
Conclusion
With all these technological advances, the payroll landscape will undergo a major overhaul in 2024. It is significant to ensure that you ethically manage it with respect for the privacy of every employee’s data.
Regular inspections and upgrades will help your company’s financial information stay safe and secure without any compromises.
Embrace these opportunities, streamline operations, and enhance accuracy.
