In the final instalment of our Payroll Trends in 2017 series, we look to the future.
In general, we think the future for payroll is exciting. We feel the Cloud will add value to the payroll space in a huge way and we will see a rapid uptake of cloud-based systems. We think this will lead to more small, specialist providers coming into the market with solutions which can be bolted on to the core payroll function.
There will always be change
To paraphrase Daniel Defoe, there is nothing more certain than Death, Taxes and Payroll changes (sorry Daniel) One thing which is constant when it comes to payroll is change. Whether it is technology or more likely legislative or tax related change, it is a constant in the life of a payroll manager.
Apart from the annual round of ACC Rate, Minimum Wage and occasional small tax rate changes, the big one is the new PAYE reporting and payment regime coming into effect in 2018. This will cause a large number of employers to review their payrolls to ensure they will be able to cope.
Hopefully one of the changes we will see in the not too distant future relates to the Holidays Act but we won't hold our collective breath. It is rare that a sitting government will make any major changes as they tend to be unpopular with one side of the political divide or the other. Therefore they will continue to tinker rather than make wholesale changes to make the act work in todays' business environment.
The "Cloud" - Capture, Process, Deliver
We feel the Cloud will add value to the payroll space in a huge way and we will see a rapid uptake of cloud-based systems. We think this will lead to more small, specialist providers coming into the market with solutions which can be bolted on to the core payroll function.
A rise in the profile of the Payroll Manager
We are also hopeful that the role of the payroll person will recognised as a key strategic role and given the credit and resource the role deserves. There are few roles in a business which have a greater impact on employees than that of the payroll manager. In their role, it has to be right every time.
Effect of Demographic Changes - the Millennials
Demographic changes will play a big part in payroll, especially as we more so-called "millennials" in the workforce. While we won't see the "Snapchat or PokemonGo or payroll" younger employees will have a different view of technology and will be looking to use mobile devices to capture and manage data.
These younger workers also have a different world view. They are more transient, impatient, don't suffer fools or what they perceive as stupid rules or processes.
Market Trends
One trend we are already seeing, which is of concern, is market consolidation. There are fewer independent payroll providers in the market and this trend will continue. The challenge we see with this is it reduces competition and has the potential to dumb down the market. The more diverse the range of products is in the market the harder the vendors have to work, which leads to innovation, better service and more cost-effective solutions.
The more diverse the range of products is in the market the harder the vendors have to work, which leads to innovation, better service and more cost-effective solutions.
What do you predict for the future of payroll? Let us know via sales@timehub.co.nz
