In the past two years, industries and corporations have seen a significant paradigm shift in work culture. It will not be false to say that organizations will have to keep up with the changing world. The area of operations management will have to innovate a lot more than before to deliver better and faster results.
Payroll processing is one such area that will need more attention to detail. It is a basic contract between the company and the employee. The upcoming business community will look at sounder ways to achieve more overall output in payroll processing.
This is not an easy phenomenon as the following payroll challenges will impede success.
Challenge #1: Diverse and Global Workforce
Employment in this century is starkly different when compared to the 20th century. The new generation is coming up with new methods to earn an income and experience.
Knowledge is available with a few clicks which have given rise to freelancers and remote workers. At least 52% of global employees work from home once a week.
Both employers and employees know that talent can be acquired from anywhere and at any time. Therefore, in the future, the task of monitoring these employees will be another management role.
The productivity of these employees will affect their payrolls. Paying their salaries on time within their time zones is going to be an additional task.
Challenge #2: Formal Payroll Strategy
2019 Research by EY suggests that companies that have a formal payroll strategy are more likely to progress. Just like companies pay heed to other business activities, payroll should be given the same attention.
58% of companies believe that payroll is an HR responsibility while others believe it comes under finance. A formalized global delivery model of payroll will be formed in the future that would solve this confusion and give a shared responsibility to both departments.
Hence, to address this issue companies will have to draw out strategic plans about how they will carry out payroll processing.
Challenge #3: Statutory Compliance
Future workplaces will go from an office complex to the employee’s home and temporary talent will be hired for specific projects. This instance will give rise to new legislation to be formed.
HRs will have to study the labor laws of the native country of the employee and act accordingly. As law changes from country to country, so does payroll processing measures.
Taxes and banking systems vary a lot even in neighboring states. There would be more pressure to comprehend all these statutes.
Challenge #4: Automation
How can we leave technology behind if we are talking about the future? Technology will bring the world closer. It will also ease payroll processing and leave management. The newest innovation is SaaS. It uses efficient cloud computing software that is less prone to errors as compared to manual timesheets.
Automated leave management systems are known to have increased employee satisfaction.
A simple error of hiding cells instead of deleting them in an Excel timesheet proved fatal to Barclays. They lost millions due to inaccurate calculations.
Challenge #5: Shortage of Payroll Experts
Every field in the future will ask for expertise. The same goes for payroll processing. The HR and accounting teams will be given more important tasks to fulfill.
HRs today believe in reskilling employees to meet the latest market standards. This additional role will replace payroll processing. The accounting and finance team will strategize to put capital into new business ventures.
In the meantime, payroll should not be overlooked. Companies will hire payroll experts to carry out accurate and punctual payrolls.
But the market will face a shortage in these terms. This gap needs to be filled by a new generation of qualified payroll professionals.
Payroll experts will design various blueprints to overcome the first four challenges. These experts should be well-versed in law, finance, and other relevant aptitudes.
How Paysquare will help you?
Paysquare assists companies in carrying out their payroll operations. We are payroll experts who are acquainted with the latest developments in compliance issues. With our ISO-certified technology we aim to produce accurate payrolls so that you focus your attention and capital on business growth.