Discover how market changes impact your small business and ways to streamline operations to meet challenges in the years ahead.
Once a behind-the-scenes process, payroll now engages and attracts employees, enhances data security, and provides real-time insights. But what’s in store for payroll in 2023 and beyond? For one thing, the challenges small businesses face aren’t subsiding. Human resources (HR) and payroll operations must adapt to changing workforces and regulations. Explore the top payroll trends and learn how they could affect your small business.
Key payroll insights:
- Businesses continue to transition to online payroll software as the market size sees stable growth.
- Back-office payroll processes must adjust to flexible workforces, including hybrid and remote staff across borders.
- Payroll and payment accessibility attract members of the gig economy while democratizing data.
- An increased focus on compliance and data integrity drives interest in adopting payroll technologies with automated updates.
Growth remains steady for online HR and payroll software
The market size of the HR and payroll software industry in the United States rose quicker than the economy and technology sector overall, according to IBISWorld. It said, “The shift towards cloud-based HR and payroll software has been a major trend in recent years.” Small to medium-sized businesses (SMBs) see online payroll systems as a solution to unwieldy spreadsheet programs or a way to bring payroll back in-house.
Anywhere payroll improves employee accessibility
At the 2023 Payroll Org Congress, Pete Tiliakos, an analyst and founder of GxT Advisors, discussed several payroll trends, including employee payment methods, payroll democratization, financial wellness, and financial technology (fintech). He coined the term “everywhere payroll,” where the ecosystem is connected with seamless data sharing between secure programs.
Mobile apps make payroll accessible for employees. And in a world where phones dominate, and information is always instantly available, employee mobile apps for payroll, benefits, and HR services can improve workforce satisfaction. At the same time, small businesses face more pressure to identify budget-friendly systems that include intuitive, user-friendly employee-facing apps and online portals.
Continue Reading Here: 7 Payroll Trends to Watch In 2023