The onset of this year already makes it seem like another challenging year, and hence to be resilient there are a couple of things apart from the above three that need careful consideration. Digitisation, flexibility and increased competition for the high skilled workforce- these three are going to drive payroll management to a great extent in this brand new year.
While digitisation is impacting the way expense management and accounting is done, payroll has been lagging due to inefficient systems and expensive processes. But in 2021, the scenario is expected to change.
So, what would these changes be? Read the blog as we ascertain some payroll trends that will set the tone for the year 2021.
Here’s a glimpse of what’s it about!
- The downfall of outsourced payroll
- The rise of tools to streamline remote payroll
- Releasing company equity to boost employee engagement
- Changing employee benefits as per the new culture.
Downfall of outsourced payroll-
Before the pandemic and even during that phase, some companies continued to outsource their payroll system. But sooner or later these companies started to understand how outsourcing payroll has a gamut of pitfalls and the benefits that it has like no training expenditure or in house expert requirement , or a payroll management software, were really short term.
HROne Payroll Management Software Users spend 89-90% less time in processing payroll than before!
Moreover, the vendors also never had full business context which led to mistakes and mishandling of data when there are end time changes in the payroll sheet. Managing payroll remotely just elevated all these problems and became a serious matter of concern. Now companies will start investing in not just a payroll software but the one that truly helps them in managing everything remotely and supports hybrid model as well. With it, they would be able to operate the system from anywhere, anytime, on the go and also process it in a matter of days or hours.
Changing employee benefits to reflect the new working culture-
Because of the novel coronavirus, many companies have decided to extend remote working model in 2021 as well. This is why companies are also revisiting their benefits package for their employees and finding ways to put more emphasis on their health and well-being which includes mental health and stress management as well. They are also trying to redo their leave policies.
Razor Pay announced wellbeing, burnout leaves and even meeting free days to make their leave policy better.
Companies are also looking forward to appoint therapist for their employees and organising one on one video therapy sessions. This is just one of the ways to reflect how progressive and in touch your company is with the new working culture. The same also reflects how caring and empathetic it is for its employees. Going beyond payslip, this attracts a large talent pool.
The rise of tools to streamline remote payroll-
Ensuring accurate payroll processing has been one of the most vital factors in maintaining and uplifting employee trust and morale. It became even important the past year due to the implementation of remote/ hybrid work model. But was it easy for payroll managers to get it all right given that the employment laws, and tax, compliance obligations keep going on a way every now and then? No. To ensure no errors are occurring the companies have started investing in a smart payroll management software that can be operated via mobile too and not just web.
Releasing company equity to boost employee engagement-
Slowly and steadily the market is opening up, and employment opportunities are increasing too. This means that not only do the employees need to upskill themselves but also the companies. In order to attract and retain the best of talent, in the past year and of course 2021, the trend would be to release company equity shares and make it a part of employee compensation. This not only would increase the motivational level of the staff but also make them more invested in the achievement of company goals.
Having served more than 350+ businesses across India, our payroll management software is best suited for you to implement these trends easily!