The COVID-19 pandemic and advancements in AI technology are affecting the future of payroll processing. These factors have led to a shift in adopting digital processes, transparency, and access to employee information.

7 Payroll Trends That Are Growing Fastest

Cloud-based payroll management systems are becoming more popular to improve the efficiency and flexibility of payroll departments. The global cloud-based payroll processing market is expected to grow to $10.33 billion in 2023.

A cloud-based payroll system is a better option than spreadsheets.

  • Eliminates data entry errors.
  • This saves time and effort that would have been spent on entering, validating, and storing data.
  • Remote access is available for employees as well as payroll processing personnel.
  • This offers better protection against cyberattacks.
  • Allows for easy scaling up and down according to your needs.

1.    Integration of payroll and attendance management

Traditionally, the HR department handled attendance and leave management while the payroll department processed Payroll.

The trend is to combine these functions so that access to employer data can be streamlined and data accuracy can be improved.

When the payroll system has access to information such as timesheets, schedules, and leaves, inaccuracies can be reduced. This helps speed up payroll processing and report generation.

Managers and their team members can access the relevant information through a single dashboard with integrated leave, attendance, and payroll systems.

1.    Transparency is key

We are not used to knowing who is paid what in a company. Managers fear that employees will resent the public disclosure of their salaries.

The trend for revealing salaries is increasing because it has been proven to:

  • Increase employee loyalty and trust.
  • Reduce the disparity in pay.
  • Retention of employees can be increased.

Companies that set fair and equal employee salaries do well regarding employee engagement parameters. This is a welcome trend.

1.    AI-powered payroll systems

Artificial intelligence (AI) has impacted every industry in one way or another. Payroll is not an exception.

AI-based payroll systems reduce the amount of manual labor required to process payroll data. This reduces company costs.

AI investment is well worth it for its efficiency improvements, automated repetitive tasks, a freeing up of payroll staff for more value-added tasks, and the generation of error-free reports.

Chatbots for Payroll is an AI-powered app that can humanize employee interactions via text or voice.

These chatbots can assist employees in finding attendance data, leaves, and payslips. Chatbots can be accessed 24/7 by employees, giving them access to all their information at any time.

2.            Mobile apps for Payroll

The COVID-19 pandemic in India has pushed for digitization. Remote work is now a “normal” way to work for employees.

Mobile apps for Payroll support this “anytime and anywhere” culture of work. Employees can access their pay slips and verify their personal details with a click.

Companies can also make more informed business decisions faster with real-time payroll reporting.

3.            Payroll flexibility

By hiring gig workers, small and medium-sized businesses were able to weather the economic downturn caused by COVID-19. To manage the fluctuating number of temporary workers, it is essential to have payroll flexibility.

These systems are flexible and can manage a diverse workforce. These systems can be used to manage tax compliance and other legal requirements.

4.            Programs for financial wellness

2020 has brought on a double crisis for employees, with fear of infection and fear about losing their jobs. Companies are creating financial wellness programs to help and counsel their employees with financial matters.

The personnel departments also release programs that link Payroll and employee benefits.

These initiatives increase employee morale, make employees feel that the company cares about them, and ultimately improve productivity and create loyalty.

Last Thoughts

Payroll processing can be one of the most tedious tasks in the HR department and can consume most of the time that could be used to address core issues within the human resources department. In such situations, online payroll software may make business sense. It can also increase employee satisfaction, reduce error rates, and allow for greater flexibility.

Payroll Management System makes it easy to use, reliable and efficient. Employers can access payroll software from any location. Our online payroll software is simple to use, doesn’t require frequent maintenance, and accounts for all your statutory compliances.