The management of payroll has modernized rapidly due to technological advances in mobile devices, software and cloud computing. This has allowed payroll to be further integrated into other aspects of Human Resources. Below are some payroll trends which are expected to continue throughout 2017.
Cloud Computing Will Become More Widely Adopted
A growing number of institutions have been switching their payroll to systems which are cloud based. This means they will operate on servers hosted by third parties which will be accessible via the internet. Such an arrangement provides a number of benefits, such as regular software updates, automatic backup of data, easier data entry and accessibility from any location where the internet is available. In 2014 research found that only 14 percent of institutions were using cloud based systems, but that number has since increased substantially and is expected to continue.
Greater Accessibility From Smart Devices
Both workers and management want constant access to payroll, even when they are not in front of a computer. This demand has fueled the development of apps that can be installed on smartphones, which most people these days carry around with them at all times. The potential uses of these apps will continue to expand in 2017. At minimum, they will provide employees and managers with remote access to payroll and some also show pay stubs and info regarding retirement accounts.
Using Payroll Analytics To Discover Trends
Greater access to payroll data has opened up opportunities for analytics. For instance, some organizations are now using HR and payroll data to determine which workers are at greatest risk of quitting, and they can also study this info to look for details that could indicate fraud, overtime pay or patterns in the hours an employee works. All of these details can allow management to make wiser decisions regarding the manner in which human capital is deployed.
A Greater Emphasis On Securing Data
The adoption of all this technology and easier access to payroll data has come at a price: the need for greater data security. Some institutions have been slow to adopt these newer payroll tools precisely because they are concerned about data breaches and the consequences which result from them. To these organizations, relying on a third party server to secure sensitive payroll data is extremely risky, which is why the AICPA has asked its members to perform due diligence with every service provider before doing business with them.
Another trend which we will continue to see in 2017 is more institutions analyzing the security protocols for their payroll data to be sure that it is updated. A greater emphasis will also be placed on keeping up to date with the latest data breach techniques and the continuing advances which will be made in this area. Hackers and other cyber criminals won’t rest, so companies and security firms must be continue to remain abreast of the latest developments in the cyber security field and adapt accordingly.