In this article, we’ll look at the newest developments in payroll and how you can ensure your global payroll operations are future-proofed and optimized.
The future of the payroll industry, and indeed business in general, is probably the most uncertain it has ever been. The knock-on effects of the pandemic have impacted – in some cases quite severely – on the way people work. The additional strain due to these changes on payroll teams is becoming more and more evident.
Because of this uncertainty, being able to predict what will happen in the future is difficult – even when you’re only looking a few years ahead.
However, there are three major trends that are already surfacing which could very likely be game changers within global payroll in 2022.
We’ll exam these trends and the possible impact that they will have on businesses who are trying to establish an efficient and strong global payroll operation:
Multi-country service adoption growth
The increase in the numbers of people working flexibly and from home has broken down many geographical barriers within the business and job markets. It’s made it much easier for inter-country transactions, and for companies to explore new opportunities in other territories.
This means that the existing trend of ‘glocalization’ is likely to increase. Glocalization can be explained as global businesses being able to cater for each country, area, or region’s individual needs. Future growth is a by-product of being able to do this with local expertise, meaning an expansion of opportunities.
However, this means businesses must be ready for the challenges presented from a payroll perspective. Making payments across borders and dealing with currency exchanges regularly is likely to become the norm.
The payroll demands of a company will be constantly evolving to meet the continual scaling of a business in different places – whether this be upwards or downwards. Therefore, it will be vital to keep track of everything using agile technology and ensuring global payroll demands are both efficient and accurate.
The rise of digital wallets
As well as exploring ways to run an effective global payroll system, employers are also looking at ways that employee experiences can be positively impacted.
It’s a well-known fact that employees with talent hold most of the cards within the job market. Therefore, these employees will favor companies who can deliver on their expectations. This is irrespective of whether the employee elects to stay with their current employer or to move on.
With the increase in these demands, employers are exploring alternative payment methods and will likely move from trend-setting differentiator towards becoming mainstream in 2022.
One of these innovative payment methods is the use of digital wallets. Users can make payments and manage their money electronically, like how Google Pay and Apple Pay are used for purchasing.
However, this technology is not just reserved for making payments, it’s being used to receive payments too. Salary payments via digital wallet are being increasingly used.
This is especially relevant in regions like Africa, where it is much more convenient for employees to utilize mobile payments because traditional banking infrastructures are of poor quality.
Earned Wage Access, where employees accrue pay in a self-service application and can then withdraw their earning at their leisure, should gain much more popularity with companies who seek to maximize their payroll flexibility.
Payroll becoming more than payroll
One of the most exciting developments with global payroll becoming more integrated is that it becomes a force for good and reaches further into a business that previously. This is mainly due to the advancement of both technology and analytics.
The innovations becoming available to payroll teams regarding digitalization, automation and predictive analytics is mind-boggling! All these areas will play a major role in reducing human error and streamlining processes. This in turn saves valuable time and resources, allowing payroll teams to utilize the saved time on projects and processes that require more critical thinking.
The wealth of improvements not only involve payroll, but the deeper insights gained can improve the company’s finance, HR and other operational areas across the board.
This not only applies to technology and physical systems, it also works on a human level. Rather than just advising what’s best from a payroll perspective, payroll practitioners can become strategic advisors. The availability of data insights means that decision-making process at all levels can be influenced.
This works on a human level, as well. Payroll practitioners, rather than just advising what’s best from a payroll perspective, can become strategic advisors; they can use the data and insights at their disposal to influence the decision-making processes at the very highest levels of an organization.
To make the most of the opportunities available to you in 2022, the Payroll Company’s payroll solution is equipped with all the multi-state functionality, analytics, and technologies that you require.
Find out more about The Payroll Company’s payroll solution here, and let our professional, knowledgeable, and experienced team help you remove any headaches and streamline your business.