Employers must make special efforts to recruit top talent and ensure they retain them due to the ongoing reduction of unemployment and the widening skills gap. Regardless of the organization’s industry or size, employers should streamline Payroll before focusing on perks and engagement plans. The plan to revolutionize management in 2021 is causing a surge of new technologies. Payroll’s automation will make human resource managers work easier by reducing manual work at end-month and retaining efficient employees. Here are the ten payroll management trends we can expect this year.
- Automated Payroll will be Entirely GDPR-friendly – the seamless availability of employees’ data across locations and interfaces makes the automation of Payroll feasible. Since the middle of last year, when GDPR went into effect, any new payroll solution introduced to the market will be GDPR-compliant.
- Bots will Guide Query Resolution – In 2021, AI-based chatbots will be commonly used to answer questions instead of employees running to various departments to get answers from human resource personnel.
- Payroll will be Audit-ready from Day One – The employer’s adoption of the automated report will allow for the submission of the electronic report instead of quarterly or year-end preparation and payroll information reconciliation.
- Weekly or Monthly Payroll won’t be the Only Way. Some solutions are already happening, such as flexible payroll systems that align wages to a specific date every month or even support one-time payments as part of a company’s regularized disbursal cycle.
- Manual Payroll will Finally become Obsolete – Most small businesses will adopt automated Payroll because they are easy and cost-effective to generate.
- Gig Workers will Enter your Payroll –. The inclusion of Gig workers in the Payroll as companies increase reliance on Gig workers such as having experienced consultants and free-thinking ‘digital nomads manage high-value projects will blur the line between pay-rolled employees and third-party workers because
- Unbanked Employees will be Welcomed – With the help of platforms such as Gusto, the most unbanked employees across the globe fall into payroll management ambit and enhance workers in accessing their salaries.
- Financial Wellness will be part of the Package – In 2021, financial wellness benefits will be a way to drive employee satisfaction without constant pay hikes. Employers can make sure their workforce is equipped to maintain a certain quality of life and correctly utilize their allocated wages by supporting the need for financial wellness.
- Disbursal will be Instantaneous – the payroll management will ease mobile payment applications’ challenges by exploring instant payment options to reduce the time workers have to wait for their specific period after their shift, project, or seasonal tenue the company.
- Pay Transparency will be the Norm Everywhere – Liberal employers will look at sharing salary levels for all workers publicly instead of keeping information about salary and wage a secret. This will help in communicating the values of fair play, equality, and reinforcing the employer brand.
These are the top ten payroll management trends to expect over the next few months. 2021 will be the year when payroll management technologies are used for positive transformation driven by large-scale digitization on the one hand and a push towards more inclusive workplace practices on the other.