Payroll matters appear to be only affected by statutory contributions or tax policy changes. However, payroll is also exposed to technological advancements, so as we are about to enter a new year, here are the predicted Payroll Trends in 2024:
Artificial Intelligence (AI) and Robotic Process Automation (RPA)
Using AI-enabled RPA for anomaly detection and data validation in payroll management helps businesses to sharpen accuracy and rapidly detect potential fraud or errors.
The RPA employ bots to streamline repetitive manual tasks and calculations, such as capturing data from scanned documents. These bots can interact with payroll systems, HR databases, and tax software to perform payroll-related activities. An example of this is automating employee data management.
Large enterprises have been using solutions that integrates employee self-service, finance, human resource, and payroll into seamless workflows. Next year, we are expecting more mid-size businesses to follow this example.
Organisations integrating HR and finance with payroll spend less money and use fewer resources, thus improving overall business performance.
Furthermore, AI-enabled RPA helps them generate accurate, real-time business information to support better decision-making. Integrating payroll and HR systems also enables self-service experiences that empower employees.
The Fluid Workforce
The hybrid model and remote working have become the norm, pushing us ahead further in the future of work. Nonetheless, the workplace evolution continues with many companies exploring more flexible work modes, such as hiring contractual employees and freelancers extensively. Some employers are even trying out the four-day work week.
In view of the rapid development, payroll teams must adjust their processes to accommodate a wide range of working models.
Payroll professionals hold a treasure trove of data that can be utilised to make informed decisions. Analysing attendance, overtime, employee retention and attrition, and compensation data gives businesses valuable insights on employee engagement, job satisfaction, and overall well-being.
The data becomes even more influential when organisations integrate their HR, finance, and payroll processes. For instance, it offers a clear picture of key performance indicators (KPIs), such as productivity or revenue per employee.
The expected trends are why we are seeing more and more payroll departments switching to a cloud-based system from manual processes for their operations. Payroll personnels can work online and collaborate at any location.
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