Today’s blog post was written by Ashley Lipman.
The way the world does business is constantly evolving. From production methods to administration procedures, technological advancements have changed the face of business exponentially in recent years. One of the areas that’s adapting to these changes is payroll.
Payroll is a pain point for many business owners, regardless of the business size. Here are four trends to watch that will bring payroll into the future.
Businesses are revisiting the importance of having streamlined business solutions and implementing standard operating procedures. The more seamlessly the business operates, the more efficient and profitable it will become. Payroll operating systems are no exception.
Modern businesses are now looking for payroll systems that help handle HR tasks as well. HR Payroll Systems manage everything from employee onboarding to performance tracking and benefit usage. By having one of these integrative systems in place, businesses reduce friction caused by using different platforms and address multiple pain points with one investment. As payroll is one of those gray area tasks that fall under both the HR and accounting umbrella, having a multipurpose interface can create cohesion between departments.
AI and Automation
AI and smart technology are disrupting the business industry. It’s creating opportunities for small businesses to compete with large corporations for the first time in a long time. AI and automation are making it possible to accomplish a lot with a small team in place by handling repetitive tasks that are low-value but necessary for operations.
In payroll, AI and automation are handling many of the outdated processes, many small businesses still use. These systems make payroll submission as easy as confirming the information and clicking a button. Some systems are also able to analyze trends and forecast scheduling needs.
Payment Frequency Changes
Many businesses use a traditional bi-weekly or monthly payment model. This approach to payroll is changing, particularly as the gig economy becomes more prevalent, and instant payment is becoming more accessible.
Modern payroll options are allowing for more flexibility in payment scheduling. Sure, it might make sense for business owners to process payroll on one specified day when they know it will take a lot of hands-on work. However, as systems become more streamlined, that approach is no longer necessary.
Some systems promote one-time payments, which are perfect for independent contractors, while others provide instant access to funds. This means that an employee who has a surprise bill come up between paydays could be able to get the money they need without going into debt.
Banks Not Required
Technology isn’t just changing payroll; it’s changing banking as a whole. In the near future, it’s possible that traditional bank accounts will become obsolete. Why pay a service fee to store your money with a bank when you can use PayPal or Apple Pay?
In the future of payroll, there will be a shift away from traditional banking methods and toward services like PayPal. Taxation laws have already started to change to be sure to capture money moving through these channels.
At present, having a home address and a bank account is necessary to get a job. As more people move toward remote work— many of whom pursue their love of a nomadic lifestyle while doing so– more businesses will start to accept “bankless” employees and be more flexible in their payment methods.
The Future of Payroll
With so many changes afoot, modern businesses will have to stay ahead of the curve to be competitive. Attracting top talent means offering solutions that fit their lifestyle. Furthermore, these changes necessitate improved employer focus on topics like financial literacy and debt management when talking to employees about their options.
With the right changes in processes, technology, and company culture, modern businesses can prepare for a brighter tomorrow.
Ashley Lipman is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition.