Exciting and Innovative Payroll Industry Trends To Look Forward to in 2019
There is more to payroll than calculating paychecks and taxes. Payroll is a dynamic field to work in. This is due in part to changing tax laws, as well as the ever-changing needs of employees. Here are five exciting and innovative payroll trends to look out for in 2019.
1. The Growth of Global Cloud-Based Payroll Software
Rumour has it, by 2023, the market size for global cloud-based payroll software should reach $9.9 billion. This creates new opportunities for large companies with employees who work at different sites across state lines, or even across national borders.
It also makes it easier for regional or head offices to track hours worked, the cost of labor and the overall efficiency of the workforce based on these factors. Experts who recommend switching to cloud-based software point to its superiority over in-house systems, such as cost-effectiveness and global access.
2. The Rise in Financial Wellness Platforms for Employees
In the aftermath of the 2008 recession, companies began to pay better attention to the financial wellness of their workers. In the past, and even in the early post-recession years, companies mostly focused on how much they were able to pay employees. However, more businesses now understand that monetary compensation alone is not enough.
According to recent sources, when companies offered financial wellness programs, 63 percent of employees used them. In addition to this, 53 percent of employees who did not have access to these programs wanted their employers to provide them. Effective programs provide assistance with eliminating debt, boosting savings and planning for retirement.
3. Businesses Are Starting To Test Flexible Pay Days
In 2018, a payroll and HR benefits provider known as Gusto decided to add a new feature to its offerings. This feature allowed employees to select their own pay periods, paydays or both. This created such a stir in the payroll community that more companies are considering similar offerings to their own employees.
Here are some of the ways this may benefit workers:
- Employees can select paydays that work best with expected bills, such as their mortgage, auto loans or utility bills.
- Employees who don’t do well with money management can select shorter pay periods.
- Empowers employees to make decisions about their own compensation.
4. The Increase in Payroll Transparency
Naturally, one of the effects of systems like these is increasing payroll transparency. This is especially the case for companies that want to enforce social equality by showing, without a shadow of a doubt, that demographic factors, such as gender or ethnicity, do not affect pay rate.
Here are some of the benefits of this:
- Promotes better trust in the workplace
- May help to reduce turnover
- Motivates employees
- Enforces equality
5. All-in-One Integration: HRMS and Payroll Software
With so many important changes and variables now present in payroll and human resources, companies are moving to integrate the two functions with one software program. The more variables there are in compensation packages, or in a software system, the more room there is for error.
By integrating the two departments with one software, the room for error is limited by syncing information and ensuring both departments are on the same page. This will reduce the likelihood of payroll adjustments and the need to file amended tax returns.
Interested in seeing more information about payroll trends throughout the year? Check the PayrollPro blog for regular updates.