Payroll outsourcing can be dated back to the early 19th century when organizations started hiring specialized groups to do this non-core activity so they can focus on primary business objectives. In the decades that followed, many companies have decided to adopt this strategy to promote cost efficiency and increase productivity. But payroll processing method remained manual until the 1950’s when computers and automation kicked in. Payroll providers emerged in great numbers taking advantage of the technology that made it easier. But as time progressed, payroll and innovation have shared a distance with only minor improvements occurring every now and then. Today, thanks to the radical leadership of specialized payroll providers, the status quo of this industry have been challenged and world-shattering innovation has found its way to this non-core yet significant function.
What makes payroll so intriguingly innovative today? Let’s find out
No more data entry and paperwork: If you are not from the payroll department, chances are you might picture this process as excessive paperwork and data typing. You are not entirely wrong; many organizations are using data entry to feed inputs into a payroll system for a very long time. But now, your HR team is no longer required to type countless employee information into a payroll system thanks to the advent of human resource platforms, APIs (Application Programming Interface) and integration adaptors. The moment an employee joins or leaves the organization’s database modern payroll platforms are smart enough to pull that information for processing. Human resource and time and attendance systems are almost as common as xls these days and they store personnel master and time data by default. These platforms are integrated with the payroll systems using API’s to facilitate data flow automatically without the need to re-enter personnel information. Your joiners, leavers data, compensation data, time and absence data are now flowing effortlessly into the payroll system.
Latest and greatest technology runs your payroll now: Integration gets the process going, but cloud computing and artificial intelligence are now driving payroll. Integration using API automates the input process; the data that enters the payroll platform is automatically verified by artificial intelligence (bots), and a powerful engine on the cloud delivers incredibly fast and accurate output. This entire system translates into the “global payroll hyperloop”, a powerful and innovative approach to payroll. And this framework is supported by a single application that offers your employees a seamless experience and complete visibility over their payroll data. Payroll has transformed from automatic to auto-magic over the years. Data enters the system for validation, processing and delivery through technology and the loop keeps repeating like magic for every pay cycle.
A single provider for the entire world: Employees work from various parts of the world and this means your payroll challenges are now “global payroll challenges”. As a company ventures new territories to take advantage of the resources, the distinct tax laws and compliance regulations of different countries has to be observed while compensating employees. Companies have long adopted the decentralized approach (hiring multiple vendors to process payroll in different countries) to tackle this problem. But this gives birth to many other challenges like high cost and lack of standardized service/ technology which makes things worse again. The optimum solution to fix this global payroll complexity is to have a single provider for all the countries to manage your payroll. Fortunately, global payroll providers like Neeyamo deliver a holistic solution to organizations operating in multiple countries. The architecture of a single global payroll platform is designed to integrate with multiple systems across the globe for inputs and process them according to the different regulations of all those nations. Now, we have an effective payroll solution that can be availed by even small businesses operating in the multi-country environment thanks to the innovatively designed architecture of payroll systems.
A complete suite of technology works together to support payroll: When we take a closer look at the compensation structure, we have more than just base pay. Employee benefits, overtime payments or loss of pay due to absence, tax deductions etc., have to be carefully considered before payment. Though payroll processing was automated a long time ago with a calculation engine, heavy manual interventions were required for capturing the different components of compensation. With this challenge in mind, new-age global payroll providers now offer a suite of automated solutions to fix the gap. Time and attendance platforms, benefits and compliance tools are availed by organizations as a unified solution along with the payroll system and are integrated to facilitate complete automation of payroll. Employee time and attendance data, compliance updates and benefits information flow seamlessly into the payroll system for processing and generation of output. So it isn’t just about processing your salary anymore, everything that constitutes your compensation right from time card entry to payment has been automated for an effortless employee experience.
Modern payroll has become a simplified process owing to the innovative ideas of new-age providers. This rapid advancement has opened the door for organizations of all sizes across the globe to benefit from highly automated payroll. Innovation in payroll isn’t going to slow down, it will only get better as technology continues to grow and contemporary providers will continue to offer the best payroll solution for you. Payroll and innovation cannot be considered an oxymoron anymore.