Dive Brief:
- Nearly half of employers aren't tracking key performance indicators in their payroll departments because of outdated manual processes and payroll systems, a new survey from the American Payroll Association (APA) and Kronos found. The Evolution of Payroll Technology Trendline Survey revealed that nearly a third (29%) of the 1,000 payroll professionals polled use payroll systems that are 10 or more years old, or the same age as Apple’s first iPhone, the organizations noted.
- One in 10 survey respondents use a payroll system that is less than a year old, and 27% use solutions that are less than three years old. Survey results also showed that progressive payroll departments focus on the employee experience, with about 19% now measuring the average response time to employees’ requests.
- Other key survey results show that mergers and acquisitions are among respondents’ biggest challenges to overcome, along with changes in business goals, leadership and regulations. Respondents also want digital payroll solutions that have self-service options for employees, provide on-demand reporting and analytics, track seasonal and contingency workers, and allow leadership, operations and finance to include payroll data in their own reports.
Dive Insight:
Outmoded payroll systems may not be able meet today's business needs or support the strategies that move organizations forward, including employee engagement. An investment in HR tech, specifically payroll, can bring advantages in performance management and worker classification tracking.
This report mentions a number of challenges that solid tech can alleviate, including overseeing the unification of cultures during M&A and the hiring of more contingent workers. Payroll systems, as well as other HR programs, need to enable agile movement and strategic decisions, rather than serve as a roadblock to those plans. As employers hire more contingent workers, especially, payroll professionals will need the tools to keep track of these workers, maintain proper classification and ensure that they're properly compensated. The increased demand for this service is one reason why big payroll companies, including ADP, have acquired solutions that purport to help with that very issue.
How well and quickly payroll serves employees and contingent workers impacts an organization's engagement, retention and brand. Giving employees 24/7 access to information on pay, work hours, vacation time and other compensation-related data is a key factor in enhancing their experience.
