Global executives and decision-makers are dealing with a corporate climate that is changing quickly due to ongoing technological and digital advancements, and they must continually adapt if they want to remain competitive. But it’s getting harder and harder to plan ahead and become ready for the future in a world that is changing so quickly.
The future is unclear more than ever, particularly in light of the significant disruptions brought on by the coronavirus epidemic. The future of the global payroll is also affected by this.
Payroll executives throughout the world are faced with a plethora of unanswered issues as a result of COVID-19, which has had a significant influence on global payroll operations. What technological advancements are expected to have an impact on future global operations?
Which are the main international payroll trends to watch for? What will the worldwide payroll look like in 2022?
In this post, we’ll focus on the key aspects that executives in companies need to take into account when they set up their worldwide payroll for the future.
Intternational payroll trends that will influence the payroll industry in 2022
The commercial and working environments have been severely disrupted by COVID-19. Although the worst of the epidemic is set to end, its impact is anticipated to influence how business is done in the future. Increased efforts to include more advanced automated processes, along with other smart and artificial intelligence technologies, and cloud-based solutions, are some of the developments brought on by the epidemic.
Additionally, analysts believe that flexible working options like working from home and remote work will continue to be significant in the upcoming year. Employee experience is thought to be more crucial than ever because of how the epidemic has profoundly changed workers’ perspectives.
These worldwide developments may be seen at an industry-wide scale and will consequently have a big impact on the world of payroll in 2022.
1. On the way to next-gen payroll
All business sectors and industries are gradually integrating next-generation technologies. Payroll is not an exception to that rule. In fact, 15% of firms were already utilizing next-generation technologies in their payroll function, according to the 2020 Deloitte Global Payroll Benchmarking Survey.
Within the next three years, another 49% of enterprises planned to deploy smart technology. Most company leaders cited engagement platforms, robots, and automation when asked which technology they were aiming to employ.
There are also early indications of hyper-automation and machine learning being widely used in payroll, including continuous payroll processing and payroll fraud detection, according to the 2021 Gartner Market Guide for Multicountry Payroll Solutions.
2. Cloud-based solutions will be prevalent
The usage of cloud-based solutions to support payroll activities is another technology-related development that is anticipated to become even more significant. On 57 percent of the firms surveyed, payroll in the cloud was already a reality, and another 27 percent were either either adopting or expecting to implement a payroll cloud solution within the next three years, according to the Deloitte poll. Global payroll will need to be made suitable for the “new normal” by using cloud services, which allow remote access from anywhere in the globe.
3. Data will be key
One of the most important lessons from the pandemic for business leaders regarding payroll is the necessity of having access to consolidated, real-time payroll data for their entire global team in order to make informed decisions about their operations and keep tabs on their payroll expenses globally. Global payroll data has developed into a useful tool for labor management in the post-COVID-19 environment, according to Gartner analysts.
4. Alternative payment methods on the rise
Modern, automated, and data-driven payroll processes are on the horizon. What transpires, therefore, following payroll calculation? If we are to trust the experts, there will also be some significant adjustments made to employee compensation. In the near future, it is anticipated that more people would accept new payment models like earned income access, which are currently in the works and well-liked in places like the Asia-Pacific.
The same holds true for other methods of paying employees. The usage of digital wallets and other alternative payment methods is anticipated to rise dramatically in the worldwide payroll industry as a substitute for delayed and expensive cross-border payments, even as alternative payment methods are already gaining popularity in the global e-commerce sector.
5. Employee experience more important than ever
It is not unexpected that employee experience (EX) is one of the top objectives for company executives given the likelihood that firms will continue to struggle to attract and retain highly qualified people in 2022. Payroll plays a significant part in the active effort to foster a great employee experience. The only way to accomplish this aim is to find other means of paying internationally dispersed teams on time and in the appropriate currency.
The rising usage of employee self-service features like electronic payslip visualization, changing personal data, or time off requests is a new trend in worldwide payroll.
6. Compensating a global workforce
Options for working remotely and from home are here to stay. Companies were compelled to go online by the epidemic, but this also made it possible for them to access talent from all over the world. Payroll must, however, remain compliant with several multi-geographical laws and regulations. Any error might be expensive. Because of this, businesses may benefit from the flawless management of their payroll process provided by reputable payroll outsourcing firms like Allsec, which have expertise processing payroll in several countries.
7. A One-stop solution
In addition to providing precise, low-touch solutions, modern payroll systems will be required to put an emphasis on the employee experience. Employees should be able to access all payroll-related questions and concerns on their payroll management system online now that everything is digital. To avoid a bad employee experience, businesses will need to resort to payroll outsourcing providers who offer comprehensive solutions.
8. Flexi payments
Payroll management companies in India will need to be prepared to provide flexible payments as a result of a flexible workforce. While administrative staff may manage employee preferences for payment methods, the payroll system must be flexible enough to accommodate different tax regimes, variable deductions, quick payslip production, and varied payment cycles.
9. Incorporating financial wellness
In 2022, payroll systems will advance to incorporate financial planning and wellness as key elements of the system. Employees were under a great deal of pressure to better manage their money throughout the epidemic. In the future, payroll management firms will seek to hire financial mentors and advisers to assist employees with managing their entire finances and budgeting.
Rundown
Payroll systems will need to evolve as a result of the growing adoption of remote working and technology. An international global payroll provider that can deliver all these elements will be essential to raising employee morale and satisfaction as workers demand more extensive systems and payment flexibility.
Additionally, by combining the accounting and HR divisions of firms, a strategic payroll system will increase the process’ overall productivity. Organizations must adapt to the changing payroll landscape if they want to have a beneficial effect on their entire HR operations.
