Darren Dempsey, Associate Director, Customer Success, gives us his thoughts on the emerging trends in global payroll technology for 2023.
The world of payroll technology is rapidly evolving, and with it comes a number of exciting developments that promise to revolutionize how companies manage their global payroll needs. From automation to on-demand payments, there are plenty of emerging trends that businesses need to be aware of in order to stay competitive.
Today’s payroll professionals are stretched thin. They’re asked to perform various tasks, often with disparate technology and limited resources. Also, they’re forced to keep up with ever-evolving payroll laws and regulations in multiple countries.
Automation
The concept of automation within global payroll delivery is not new, but the adoption of hyper-automation, which uses several automation tools and processes working together, such as Robotic Process Automation (RPA), is taking automation to a whole new level. RPA enables the execution of structured business processes by using bots. Bots are being programmed to execute process tasks in an instant, scalable manner, working at maximum speed, 24/7. Automating a payroll process using RPA results in the following:
- Greater efficiency and accuracy of a process
- Improved consistency and speed of delivery
- Reduction possibility of human error
- Enables payroll specialists to focus on delivering exceptional results
iiPay is constantly working to be ahead of the curve with our use of automation, from the upload of immense amounts of payroll data to automated validation of payroll in seconds, thus focusing our payroll specialists on complex cases and the employee experience, delivering the high-value work that our clients expect.
On-Demand Pay
One of the most highly-debated topics in recent months has been the emerging technology and service that is the earned wage access (EWA) and on-demand pay, which employees can receive their wages as they earn them before their next payday. This is typically in the form of the employee accessing all of their earned wages or a proportion, such as one day’s wages. According to a recent payroll industry survey, 12% of employers would be interested in providing this scheme to their employees, whereas a recent Forbes survey found that 83% of employees believe that they should have access to their wages at the end of their day or shift.
To provide an example of EWA, restaurant chains are using these services as an option for their employees so that once an employee finishes their shift, they are given the option to collect their paycheck that day and if they do, their wages are transferred to a prepaid debit card or deposited directly into their bank account.
With the continued disruption that fintech is having on the banking industry, on-demand pay is going to have a significant impact on the global payroll and HR landscape as systems and processes will need to evolve to on-demand pay initiatives, which will mean a greater need for integrations and the use of automated solutions to deliver highly accurate on-demand calculations and payments. It’s going to be an interesting developing topic in 2023.
AI and Machine Learning
Artificial intelligence (AI) and machine learning play a major role in global payroll technology. Both can help automate mundane tasks such as data entry, allowing payroll professionals to focus on more strategic activities.
The use of cutting-edge AI cloud technology will enable the automatic notification of specific teams when input errors and anomalies occur within your payroll, allowing for swifter correction before the payroll processing commences.
The next step is to connect the client HRIS system with the Global Payroll Platform via an API. The two systems can work with one another to assess and provide feedback on errors that can go directly to the end employee to address, putting the control and onus on the individual to correct their input error which will significantly reduce the overheads of a payroll team.
Data Security
One other important trend to consider is data security. Companies must ensure they’re utilizing secure technology and services to protect sensitive employee information. This includes encryption, two-factor authentication, and other security measures that can help prevent data breaches and other malicious threats.
It’s important to ensure payroll is closely aligned with the other departments and that data is securely shared across functions. The integration of a global payroll system ensures accurate reporting and timely payment for all employees. It also allows for better forecasting, budgeting, and planning by providing visibility into current expenses, future trends, and key performance indicators.
Companies that leverage the trends can gain a competitive advantage by integrating payroll operations with the rest of their departments. By doing this, they can create synergy and more efficient processes across the entire organization. This helps streamline workflows and reduce costs, allowing companies to remain competitive while providing employees with better service.