Marketing & Media trends
Industry trends
BizTrends Sponsors
#BizTrends2024: AI and the cloud are crafting the future of payroll management
Payroll, an indispensable element of every business, has experienced a significant evolution over the years. In the past, innovation wasn’t a central focus of payroll systems. However, with changing work dynamics and the arrival of new technologies, payroll processing has been steadily transforming.
The future of payroll will surely surpass present boundaries, harnessing technological breakthroughs to build an era marked by efficiency, precision, and seamless management. Artificial intelligence (AI) and cloud computing will be the engines driving this change, providing companies with a means of strategic expansion and efficient payroll administration.
Payroll has a bright future ahead of it, with tech-driven, smooth, and efficient procedures being led by cloud-based solutions. Let's look at a few upcoming adoptions for which payroll and HR departments should prepare:
1. AI-driven automation
AI integration will streamline payroll operations, automating intricate processes. This transition will redefine management roles toward validating and approving AI-processed data.
2. Real-time workforce alignment
AI-powered integration between time management, payroll, and finance systems will drive real-time workforce planning. This synchronisation will correspond with business productivity and profitability metrics.
3. Seamless mobility and data access
Mobile employee self-service apps will foster efficiency, granting instant access to comprehensive employee data on various devices. No longer will employees have to queue outside the payroll office to get their pertinent payroll information.
4. Effortless banking integration
Payroll systems will integrate seamlessly with traditional banking and cryptocurrency platforms, offering real-time exchange rate data and diverse banking functionalities, which will be useful in many ways, ie. for banks needing to grant credit to employees, they will have instant access to data needed to calculate risk. Employees can be paid in any currency they choose, even cryptocurrency.
5. Adapting to gig economy needs
The gig economy is growing, and more and more people are looking for jobs that speak to their way of work rather than the traditional rigid ways of work. To attract talent, companies will need their payroll systems to allow for the flexibility this market requires. Where remuneration may be based on the goal and not the time taken, time may no longer be a factor in calculating a salary. Payroll systems will cater to various worker categories in the gig economy, emphasising real-time or on-demand payments for non-salaried or contract workers.
6. Cloud-powered evolution
Cloud-based payroll processing will dominate, providing unparalleled accessibility, flexibility, and cost-efficiency. This evolution ensures automated updates, robust compliance adherence, and scalable capabilities.
7. AI-enabled payroll efficiency
We have witnessed how AI has driven efficiency by automating tasks, minimising errors, and streamlining processes, notably in timesheet management and employee support. AI isn’t something payroll managers should be afraid of however, it will allow them to better drive a high-performance culture in the organisation instead of performing menial administrative tasks that go with managing people.
8. Synergy between HR and payroll
Gone are the days where payroll and HR work in their own silos with not too much collaboration. Seamless integration between HR and payroll systems will bolster data accuracy, security, and accessibility. This convergence will offer advanced payroll capabilities catering to diverse employee preferences and the automation of performance-based incentives.
9. Personalised payroll experiences
Consumers are used to personalised experiences and the team member expects nothing less. Future payroll systems will prioritise personalisation, providing advanced payroll features tailored to individual employee needs, from varied pay periods to niche financial benefits.
Embracing payroll services that align with these future-oriented trends will save time and money while paving the road for a more streamlined, efficient, and integrated payroll management future. The cloud is driving the future of payroll, ushering in an era of efficiency, innovation, and seamless administration.
About Ancel Draai
Ancel Draai is the MD for Applico Training, a Sage Solutions Training Provider