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Introduction
If you are part of the 29% of SMBs using an older payroll systems, you’re in luck. Thanks to recent optimization of payroll service offerings, there’s a lot of cool features in HRIS and payroll services that will reduce time consuming and eliminate manual processes. Check out how payroll services are changing how embracing AI, accommodating the growing gig economy, reducing the complexity of remaining in compliance and more…
A recent study by Kronos and the American Payroll Association has found that 29% of SMBs use an outdated payroll process. Many are using spreadsheets and other manual payroll processes. If you are in this group, it may be time for a payroll process upgrade. Here’s some interesting trends occurring in the payroll industry.
Standalone Vs All-in-one Payroll System
Standalone payroll systems are a thing of the past – All-in-one payroll solutions like UZIO are the way to go. Designed to reduce or eliminate manual processes, these all-in-one solutions create an easy to use, self-service environment enabling businesses to be able to manage all their payroll functions without any assistance. This helps reduce business reliance on support heavy payroll services or vendor support.
Innovative and Flexible Payment Options
Flexible payment options change how employees get paid – As payroll processing is increasingly digitized, diverse compensation administration options are becoming a must have. Not only are the standard paper checks versus direct deposit a current feature expectation, other employee payment options are emerging. An employee payment self-service option is an attractive feature. Crypto currency payments may become more widespread in use as this payment method becomes more popular. According to a recent Statista report, over 39% of surveyed Americans reported they would be “open to the idea of using Bitcoin for transactions and purchases.”
Artificial Intelligence (AI) automates and optimizes payroll processes – Payroll systems will be able to continue to learn and anticipate what employees want from payroll. This is thanks to AI enhancements that are built into payroll software solutions. AI will enable payroll systems to automate processes, increase efficiency and reduce errors. Want to learn more about how AI is being leveraged, check out this recent article by Forbes “11 Ways AI Can Revolutionize Human Resources.”
Compliance Challenges
Compliance can become a bit less daunting – The changing landscape of financial laws and regulations will require constant diligence. As AI is increasingly built into payroll systems, it can help automate compliance. AI can help with real-time updating of tax, wage rates and any applicable changing laws.
Gig Economy and Lack of Benefits
Gig economy growth requires changing benefit offerings – The growth of the gig economy is becoming more of the norm. Payroll services will need to adapt and provide the appropriate support for these non-traditional workers. For many non-traditional workers, any health benefits have not been provided. According to CNN Business reports, “Millions of American workers don’t have access to health insurance through an employer.”
Conclusion
Trends suggest payroll providers will need to develop the appropriate accommodation to these unique needs of this currently underserved area. Only those payroll system providers who are able understand and adapt to the changing demand will be able to survive and grow at a rapid pace.
