The Future is Bright for Payments and Payroll Professionals-Reading time: 4 Minutes
The technological revolution in the payroll sector has been steadily advancing in recent years. However, with the rise—and demand—for contactless payments, payroll technology and cashless transactions increasing in the last few years, we now find ourselves at an exciting turning point in the industry. This is supported by global industry analyst Josh Bersin, who has rejoiced that the HR industry is being “boosted by billions in venture capital funding”.
With online payslips becoming the norm and some countries trailing biometric payments, it’s clear to see that many changes in the HR and payroll industry have already taken place. But what does the future look like for payments around the world? Will cheques become obsolete? Will cash still be used in ten years’ time? Will blockchain and cryptocurrency become the norm?
More importantly, how will this impact HR and payroll departments around the world?
The Catch-22 of Going Cashless
With contactless payments now the norm, cash is quickly becoming less frequently used. Although many HR and payroll departments now pay employees through electronic transfer, moving to a cashless society might pose an issue for some employees.
For example, the older generation might become isolated if societies become cashless. A recent article in Raconteur’s Future of Payments report explains that ‘cash is a key part of national infrastructure… [there must be] financial inclusion for older people’. Although it might be a while before a number of countries become completely cashless, some European countries like Sweden, are already making impressive progress.
With cash use steadily decreasing in many countries, and payment technology increasing, HR and payroll departments must ensure that all employees are represented and can thrive in an online world. Whether through training or inclusion courses, it’s important for HR and payroll teams to lead the way when it comes to inclusive payroll.
Moving Away from Monthly Payroll
We’ve already seen some employees moving away from monthly payroll and adopting ad-hoc payment times. This empowers employees to cash-in their pay on a weekly, fortnightly, or monthly basis, so they can access their pay when required, rather than waiting for the end of each month to be paid.
This self-service aspect of HR and payroll works well, as many gig workers are employed to work temporary days and hours on a project basis and this enables them to take control of when they receive their pay. Because of this, HR and payroll departments must log payroll accurately and in real-time, ensuring that it is always up to date and is accessible.
By choosing an offering like SD Worx Staff Solutions, organisations can hire skilled temporary staff for a specific project or a set period of time. HR and payroll professionals can consequently manage recruitment and flexible employment activities that will help organisations to power up their payroll.
This process requires a movement away from manual payroll towards payroll that is powered through automation. There is an abundance of benefits for automated payroll, from improved compliance to reduced manual errors.
Breaking Bounds with Blockchain
There has been a lot of hype around blockchain in recent years. As the hype is now subsiding, those companies who are embracing blockchain can use the technology to benefit a number of industries. In the Chartered Institute of Payroll Professional’s The Future of Payroll report, an article by Vickie Graham explains that “for payroll, blockchain could be used to pay employees. It could be used as a payment channel for those who do not have bank accounts; and is something that some payroll software providers have been developing and testing.”
Payroll professionals can also utilise new technology to reduce the need for employees to complete endless spreadsheets and forms, and to increase compliance and security. By supporting employees with technology, the payroll function can be empowered within the organisation as a whole, and can offer new ways to ensure that all employees can be paid securely and efficiently.
With these new advancements and challenges rearing their heads, HR and payroll teams need to be one step ahead to ensure that they do not fall behind. The future is bright for payroll professionals, and it’s important that they stay one step ahead in the race for optimum payroll processes.