Creativity is thinking up new things; Innovation is doing new things! – Theodore Levit
As the world celebrates Creativity and Innovation Day on April 21st, do you remember the last creative activity you performed? When was the last time you took a break from the mundane to pause and smell the roses? We are in the middle of an era where technology has infiltrated and dominated every aspect of society. Nowhere is this more evident than in business and commerce, where the effective application of new technology and processes may make or break a company. And most believe that technological disruptions brought forth by innovation is well worth the price.
What about innovation in the payroll industry? Has it taken a back seat? The payroll industry has a somewhat sleepy reputation regarding innovation. Most people regard payroll as a rather monotonous back-office “commodity” that is more of a necessary evil than an exciting location for innovation and innovative thinking.
Many managers are hesitant to innovate in this area due to the susceptible nature of compensation and wages. A poorly planned initiative to “streamline” payment systems can be disastrous, causing salary disruptions throughout the firm. As a result, many organizations are still using old, wasteful, and clumsy payroll systems.
Payroll Innovation – A Modern Day Reality
The environment around us is constantly changing. And as the world evolves, we must adjust as well. To stay afloat, businesses of all kinds must continually adapt and develop. Those who do not adapt will succumb to competition. Payroll innovation aims to keep businesses and HR departments on top of their game by ensuring that their systems and technology are cutting-edge.
What is the state of innovation in Payroll today?
Innovation in the payroll arena has been relatively sluggish. While payroll is somewhat transactional and repetitive (calculate gross-to-net each pay cycle based on pre-defined rules), it should also be compatible with innovative technology (e.g., robotic process automation, machine learning, artificial intelligence, etc.). However, the unfortunate truth is that it is by and large, still relatively low-tech. Many payroll activities are still done manually, with emails, spreadsheets, and paper being exchanged back and forth. Even the industry’s most prominent players have been slow to adopt cloud-based solutions. They include more consumer-grade self-service capabilities in their software. However, these features have long been standard in other industries and software solutions for different business functions (e.g., sales, marketing, etc.).
How can Payroll innovation drive business success?
Payroll innovation has several advantages. And businesses are rapidly seeing the benefits of investing in this area.
The most obvious and immediate benefit is that paying your staff is easier and more efficient. A dependable and rapid method may be used to ensure that employees are paid on time. This will in turn make employees more driven and productive as they will have one less thing to worry about. This would also help with efficient resource allocation to other activities that demand more attention.
Employers can also benefit from payroll innovation since it allows them to have more control over individual payments and data. Individual employee productivity, attendance, overtime, extra perks, and incentives may be tracked. As a result, the company’s payroll will have better visibility and accuracy, reducing mistakes.
Where is payroll heading in the future?
Global executives and decision-makers are confronted with a fast-changing corporate environment as technology and digitalization continue to grow, requiring them to adapt to new situations to remain competitive continually The future is more unclear than ever, especially following the disruptions caused by COVID-19. This holds true for the future of global payroll as well. Here are some payroll trends to look out for –
– Paving the way for the Next-gen payroll
Most firms already utilize next-generation technologies in their payroll functions. Most company executives said engagement platforms, robots, and automation were among the technologies they wanted to use.
– Rising demand for Cloud-based solutions
The usage of cloud-based solutions to support payroll activities is another technology-related trend that is predicted to acquire even more traction. Cloud solutions will be a critical component of making global payroll appropriate for the “new normal” since they allow remote access.
– Data will be pivotal
One of the most important lessons for business leaders to take away from the pandemic in terms of payroll is that having access to aggregated, real-time payroll data for their whole worldwide workforce is critical for making well-informed business choices and managing global payroll expenditures.
– A multitude of payment methods
While alternative payment methods are already gaining ground in the worldwide e-commerce industry, the usage of digital wallets and other similar technologies in global payroll is expected to grow dramatically as a solution to delayed and expensive cross-border payments.
To keep up with global payroll trends in 2022, businesses should use a cloud-based global payroll solution to update their payroll procedures. Neeyamo has a consolidated global payroll platform that integrates a company’s payroll information, automates data flows, and allows them to see payroll data for their entire workforce – on a single platform. Interested in knowing more and driving your organization toward an innovative global payroll path?
Get in touch with us to learn more about our services.