Recently, I shared my perspective on emerging trends in payroll, with an emphasis on regulatory compliance, with Global Payroll Magazine, the official magazine of the Global Payroll Management Institute. If you’re a subscriber, you can read the article here. In my interview, I discussed my insights on the future of payroll along with emerging trends and the changes that digital has brought to the way that payroll is managed. My top highlights from the interview can be found below along with insights on what the changes in payroll management mean to our industry.
What emerging trends and issues have your attention?
In recent years, I have found that the focus on the end–to–end hire-to-retire processes is a catalyst for transformation and the manner in which both our clients as well as our workforce now operate. This process centric focus is now driving productivity and operational improvement. By enabling the greater workforce with more self-service tools and apps while encouraging and allowing mobility, we have not only been able to create but provide insight into the total cost of human resources for employers. This has allowed companies to better manage talent and continue to improve less-than-efficient processes based on these insights. Perhaps the largest payroll movement in recent years is the shift to digital payroll management and automation. These features address workforce productivity as well as support the mobile nature of the large organizations. The shift to digital allows employers to be compliant in real-time and monitor for any fraud that may occur within HR/Payroll related processes.
What major shifts and changes do you foresee?
A major shift will soon take place within compensation packages. They will soon include more creative incentives and become more outcomes-based. A shift will also come as companies consolidate HR and Payroll functions to drive standardization. This will help regional hubs to focus on local legislation and statutory requirements. The move to cloud-based payroll solutions will greatly accelerate a company’s ability to meet requirements and be compliant.
What changes do you envision in regulatory compliance?
Soon, there will be increased governance, risk, and compliance relative to policies and process governing employment contracts, compensation, benefit packages, and employee safety. This will bring a heightened awareness and focus on employees and employer privacy and confidentiality. Taxation and employment authorities will soon intervene (wc) to address changes in labor laws, as well as disclosure of compensation, benefits, and employee business expenses.
As global shifts to a digital sphere, many changes will soon come to the way we manage payroll operations. While these changes will meet the needs of country compliance and regulations, it will bring benefits to employees in their mobility and workforce safety. I look forward to seeing the changes and meeting the new challenges as we shift to a digital focus within payroll.