5 Payroll Trends not to Miss in 2023
Payroll is a cornerstone of business for companies of any size. But it is also dynamic and evolves together with technological and work revolutions, constantly raising the bar and setting new standards for efficiency. Don’t be the one to lag behind your competitors, read on and discover this year’s most prominent payroll trends with Africa HR Solutions:
1. Cloud-based payroll
While Cloud technology is certainly not new, cloud-based payroll has only recently taken off, aided by companies’ growing need for centralized global payroll systems. Cloud-based payroll is a viable solution to the challenges raised by the remote work revolution. Indeed, this type of payroll system can reliably serve companies whose employees work from home, follow a hybrid work schedule, or work in a different state or country altogether.
How cloud-based payroll works
A cloud-based payroll is, essentially, a payroll management software that is stored in secure servers. As such, you do not need to be connected to a specific computer or be on-premises to access your payroll system. The software and employee data are stored in the ‘cloud’.
This allows you to view, run, and manage any aspect of your payroll with just a computer and internet access. You can onboard employees, ensure compliance and administer benefits, among others.
Benefits of cloud-based payroll for your company
- Fewer upfront software costs
- Centralized system leads to reduced errors
- Allows payroll staff to focus on other, pressing tasks
- Access to real-time information anytime, anywhere
- Payroll process is faster and more efficient
2. Gig economy adaptations
This trend is connected to yet another recent work evolution: The Great Resignation, or the reported mass resignation of employees following the pandemic. With more gig workers and freelancers offering their services in various industries – from delivery services to digital marketing – payroll systems need to adapt to handle this type of ad hoc work, as opposed to the consistent work done by full or part-time employees.
Benefits of gig economy adaptations for your company
- Ability to compliantly pay gig workers
- Avoid misclassification risks and sanctions
Help you make the most of gig workers’ services
3. Comprehensive payroll solutions
In 2023, payroll systems will not simply deal with payroll processes. They will offer comprehensive solutions, linking your payroll software with other related tools and software such as:
- Time and attendance software
- Accounting & Finance software
- Human Resource software
- Expense reimbursement software
The idea is that new payroll systems will connect all the different aspects of internal operations, sharing real-time data that other departments can work with easily. Find out more about payroll integrations and how they can help you here.
Benefits of comprehensive payroll solutions for your company
- Centralization allows all departments access to data
- Fewer data errors; increased accuracy
- Streamlined payroll process
Time gain
4. Flexible payment solutions
To meet the needs of an increasingly diverse and dispersed workforce, payroll systems in 2023 will need to offer flexible payment solutions. This means the ability to make payments in multiple countries and in multiple currencies, all the while maintaining compliance. Of course, payments need to be secure and swift as well.
This feature is of special importance to multinational companies that must be able to coordinate and make payments to their various offices in different countries.
5. Employee equity & non-cash compensations
Employee equity and other forms of non-cash compensations are on the rise, and are part of companies’ efforts to incentivize employees and improve the employee experience.
What is employee equity?
Employee equity is a type of non-cash pay that gives recipients a stake in the business. Employers may provide it as shares to their employees. Employee equity can be an effective tool for finding and keeping talent, particularly in a company’s early stages. Employees also receive a portion of the company’s profits, which may motivate them to work more to ensure its continued growth.
Employee equity offers often include a waiting period during which an employee does not have access to their assets. Employee equity can occasionally compensate for a lower base salary.
What are non-cash compensations?
Non-monetary remuneration, as the term implies, is anything that isn’t a person’s pay. Benefits, retirement, holidays, personal days, and financial assistance for things like childcare and transport are a variety of non-financial rewards. They have a monetary value, but it usually isn’t specified anywhere.
Combining the best of technology and human ability
While payroll is getting more and more technology-focused, it is necessary to point out that the best payroll systems are the ones that seamlessly blend technology with human ability, because at its core, payroll is a human-centric process that requires human input and knowledge.
At Africa HR Solutions, our payroll offer is up to date with the latest trends on the market and our focus is on delivering impeccable service. We offer our clients the luxury of a single point-of-contact for all their payroll needs across the African continent, making communication more efficient and less time-consuming.
Contact us now to find out how we can help you modernize your payroll system.
