We all know that COVID-19 has disrupted and changed world dynamics significantly the past couple years, including the way we approach work. Many companies were quick to adapt and adopt flexible employment strategies with the idea that there would be a return to pre-covid policies at some point in the near future. However, as key industry trends turned into long-term solutions, it has become apparent that some of these new initiatives are here to stay – at least a little while longer.
In this guide to payroll industry trends, we’ll take a look at how hiring, accounting, onboarding, and other trends are evolving in 2022. Take a look and see how your organization may benefit from utilizing these practices.
Payroll Industry Overview
Payroll can be a source of frustration for small business owners and large corporations alike – but it doesn’t have to be given the right platform to work with. More and more tools and services are being offered for outsourcing payroll, and you can even get direct aid from a third-party payroll service provider to aid your small-business payroll system. This has allowed savvy companies the ability to reduce time and stress spent on running payroll, and it can save your company a great deal of money in the long run.
Many of these practices have been accelerated or necessitated with the shift of workplace dynamics due to COVID-19. However, the baselines of a good payroll structure remain the same. Quality employers should make sure their payroll includes:
- Accurate time attendance for all workplace locations
- Proper onboarding and tax forms
- Correct payroll classifications and payroll tax settings
- Paying employees accurately and on time
- Support for correcting clerical errors
- Book-to-tax streamlining for organizational reporting
What Does the Payroll Market Look Like Now vs. Before COVID-19?
As soon as quarantines and social distancing restrictions were implemented, remote work skyrocketed in prevalence. While it had been trending slightly upward in certain sectors prior to 2020, those businesses unfamiliar with remote work needed to adapt quickly. With this change, payroll practices needed to change as well.
Digital onboarding and the digitization of payroll became a mandatory measure to accommodate for completely remote offices. Even time-keeping became app-based for many companies. While these trends may not apply to all industries, their effects are being seen globally across all markets. Even on-site jobs such as construction and real estate have taken significant measures to upgrade their payroll systems due to all the advances in software and SaaS that can help employers.
In the spirit of American ingenuity, the pandemic may have brought much disruption for companies, it resulted in resilience in plenty of companies using the state of the world as an excuse to higher their standards rather than lessen them, embracing the resources available to keep their businesses afloat.
Payroll Outsourcing and Industry Trends
Payroll planning and a streamlined process are often taken for granted as employees get paid according to a consistent and predictable schedule.. The ripple effect on our normal ways of operating have certainly been felt quickly with little opportunity to prepare or brace for it.
Management and HR are now more than ever faced with the need for payroll service options available to support a remote workplace, as well as resources to help offset the cost of labor in a downtrodden economy. There has been a wide range of impact on the nationwide shutdowns from the coronavirus, but it is essential to adapt and plan for success in a new global climate. Make sure to have open communication with your business’s key decision-makers about how to best protect your employees and your organization.
There has been widespread implementation of fully-digital payroll reporting for offices working remotely in the face of COVID-19 policies and trends. There is no on-site accounting or distribution of paychecks, reducing time-tracking, payroll, and accounting to be solely software-based.Thus, the easiest move for an HR or payroll team has been to automate or even fully outsource their payroll to a processing company to make matters easier.
Resources to Keep Payroll Uninterrupted
Having a strong third-party provider for payroll, HR, and tax-filing is especially prudent with these newer employment dynamics. The amount of specialization and experience you can get using a reputable outsourced payroll company is likely to far outpace a small internal team – and it will come at a fraction of the overall cost.
In addition to outsourcing your payroll, some ways that third-party providers can help keep things simple for the benefit of your employees include:
- Providing paperless payroll solutions for efficiency and safety
- Staying up-to-date with regulatory changes and updating payroll systems as required
- Minimizing the need for employees to go to the office for payroll and HR solutions
- Working closely with your management team to ensure long-term success
- Monitoring for the latest in global news and trends
Ultimately, while there is no simple solution to apply to all businesses, it might be in your best interest to consult a payroll processing company about how to work automation into your company planning and processes in the midst of coronavirus regulations, trends, and government policies.
Stay Ahead of Payroll Trends with Paytech
Over the past couple of years, businesses of every size have been forced to adapt in unprecedented ways, and Paytech has been there to help every step of the way. With over 30 years of experience, we are one of the leading qualified consultants for digitizing and outsourcing payroll processes for small and large businesses alike.
If you are looking to take your payroll processes to the next level for long-term success in rapid changing times, please reach out today. We’d love to help!