3 Updated Payroll Strategies & Trends in 2020

March 12, 20202:46 pm1484 views
3 Updated Payroll Strategies & Trends in 2020
Payroll strategy to implement in 2020

Jeffrey J. Brown, the Principal, Human Capital Ernst & Young, said that strategy and delivery of payroll are continuing to evolve and shift to accommodate global advancement and growth that many organisations are experiencing today. Not only that, digital technology also creates both opportunities and challenges within organisations. Advances in third party payroll applications require organisations to rethink their payroll environments. Meanwhile, technological trends in the payroll domain have the potential to make payroll teams’ work easier and more efficient. 

See also: HR Tips for Easy Payroll Process in Every Season

3 Payroll strategies to implement in 2020 

Keeping payroll process updated is not an easy job. HR should always understand and know the latest trends as well as strategies to ensure that their payroll is conducted in the most efficient way. Leaders should not just acknowledge the latest taxation system but also know the right tools and regulations so the company could stay competitive in terms of employee satisfaction. 

Kronos and APA study has identified a big perception gap between payroll teams and the rest of business. The study suggested that there are three payroll strategies professionals should keep up while keeping those perfect paychecks heading out on schedule. 

  • KPI tracking gives a continuous improvement – Over half of the Kronos respondents reported that they do not track their payroll key performance indicators (KPIs). However, one must understand that you cannot improve what you cannot measure. That said, without KPIs, your payroll could not be optimised and might put challenges in the future. 
  • Automation helps you work faster without hassle – According to Kronos, companies with the lowest payroll error rates are the ones that close out their payroll faster, with the help of automation. Work in 2020 with manual processes will be daunting. Hence, let automation and HCM system do the heavy lifting while helping free up your time to focus on the strategic data above (KPIs) to improve your payroll strategy.
  • Unification is the key to move forward – Over 60 percent of Kronos respondents cited that their payroll processes had to be unified with their timekeeping and HR systems, implying that you should make sure that HR team and payroll team take part of organisations’ wider HCM approach to handle payroll trends. Unification is an answer to stay competitive in this very daunting payroll process. 

Read also: Expert in Calculating Money? Be a Payroll Specialist