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Top 5 Payroll Trends to Follow in 2020
Payroll outsourcing services are constantly looking for ways to revamp their existing payroll technologies
Payroll outsourcing services are constantly looking for ways to revamp their existing payroll technologies. As the workforce continues to go digital, new payroll trends follow suit. Here are the top five payroll trends to look forward to in 2020.
Trend 1: Pay Transparency:
Many businesses are moving toward pay transparency and making compensation more performance based. This promotes fairness and equality among employees, and motivates them to work hard as they know their pay will be determined by their performance, removing any chances of bias.
Trend 2: Automated Payroll: Doing payroll manually can be a time-consuming and an inefficient process. Humans are bound to make errors during the payroll calculation process, which can cost entrepreneurs a lot of money. According to the IRS, 40 percent of small- and medium-sized companies pay payroll penalties of $845 each year on average for late or incorrect filings.
Trend 3: Integration with HR Software: There are a number of benefits associated with integrating payroll and HR software. An integrated system helps increase efficiency in managing employee data. A human resource information system (HRIS) includes such functions as time tracking and scheduling.
Trend 4: Increased Use of Cloud and AI Technologies:
Trend 5: Rise of the Gig Economy: Hiring new workers can be both expensive and stressful, and hiring full-time employees for specific projects just doesn't make sense. That's why many business owners have started using gig workers in place of full-time employees. These freelancers are hired on a temporary basis to fill a role in the company.
By staying on top of these new trends on your own or by hiring a payroll outsourcing service to handle it for you, your business can evolve with the shifting payroll landscape.