Payroll & HR Trends to Watch in 2023: The Future of Payroll is Here

As we approach 2023, payroll and HR professionals need to stay up-to-date on the latest trends and technologies that will shape the future of their industry. In this article, we'll explore the key trends expected to shape payroll and HR in the coming year, including increased use of Technology, a greater focus on Compliance, the growing importance of data security, and the rise of remote and hybrid work models. We'll also discuss the increasing use of employee self-service and the growing focus on employee experience. Whether you're a payroll or HR professional, staying on top of these trends is essential to ensure that your organisation is prepared for the future. So, let's dive into the six trends for payroll and HR.

1. Increased use of Technology

The use of Technology in the payroll industry is only set to increase in 2023, with many organisations turning to cloud-based payroll systems to improve efficiency and reduce the risk of errors. These systems allow for easy access to payroll data from any location and facilitate integration with other HR systems, such as through API integration. But it's essential to ensure you're not falling victim to "fake cloud" or "washed cloud" when a company tries to sell you an old product or service by pretending it's a cloud solution. True cloud solutions are specifically designed to work in the cloud and offer features like self-service, paying only for what you use, and security and recovery systems to protect your data. Don't be fooled by fake cloud – choose a true cloud solution to improve efficiency, save money, and access the latest Technology. Additionally, AI and automation are expected to play a more significant role in payroll in the coming years, potentially providing even greater efficiency and accuracy. By leveraging these technologies, organisations can analyse data over time to automate the identification of payroll anomalies and free up payroll staff to focus on more value-added tasks.

2. Greater focus on Compliance

Payroll departments must prioritise Compliance to stay competitive in today's business world. With so many laws and regulations to follow, this can be a daunting task. That's where Technology comes in. Investing in a payroll system with built-in compliance features lets you easily stay up-to-date on the latest regulations and automatically calculate and deduct the correct taxes. But Compliance is one of many factors to consider when choosing a payroll service. Cloud-based payroll solutions can help automate repetitive tasks, improve efficiency and accuracy, and offer self-service, ad-hoc reporting, and process automation. But it's essential to choose a provider that can help you navigate Compliance's complexities. Don't let Compliance hold you back – invest in the right payroll solution and take control of your payroll operations.

3. The growing importance of Data Security

In the digital age, data security is more important than ever. As Technology plays a more significant role in payroll, companies must ensure that their payroll systems and processes are secure. This means investing in security measures such as encryption, secure authentication protocols, and robust data backup and recovery plans. Cyber attacks are becoming more sophisticated and widespread, making it increasingly important for companies to prioritise the security of their payroll data. A security breach can harm a company's reputation and result in costly legal consequences. To protect against these threats, companies can train employees to recognise and prevent social engineering attacks, implement strong password protocols, and invest in secure payroll technology. Outsourcing payroll services can also provide an extra layer of security if the service provider has the necessary measures, like ISO 27001 certification in Information Security Management. Protecting payroll data is crucial in today's digital world and requires ongoing vigilance and effort.

4. Remote work and Hybrid work models

The pandemic has shifted towards remote and hybrid work models for many organisations. This trend is expected to continue in 2023, and payroll departments must adapt to accommodate these changes. This may involve offering flexible payment options, such as accessing earned wages before payday, to help employees work remotely or on a flexible schedule. TymeAdvance is a salary advance solution that allows employees to access their salary anytime, without the burden of interest rates or credit checks. The service is designed to help employees manage their financial needs and focus on work, and it is offered at no cost to the company.

In addition, TymeBank has partnered with PaySpace to help accomplish early wage access. TymeAdvance is integrated with PaySpace, making it easy for corporate partners to onboard and customise the service to their business requirements.

Payroll departments may also need to implement new processes to ensure that employees are accurately paid for their time, regardless of location.

5. Increased use of Employee Self-Service

Many payroll departments are already using employee self-service portals, which allow employees to view and update their personal and payroll information online. This trend is likely to continue in 2023, as it can save time and reduce the workload for payroll departments. Employee self-service portals can also improve accuracy and reduce the risk of errors, as employees can review and correct their information.?

We are also excited about our new employee self-service bot that helps with payroll and HR requests through WhatsApp, which launched in February 2022. (2:35min Demo Video)

With Pacey, employees can easily register using their national identification number and access their payslips in PDF or text format anytime. Pacey also offers interactive messages for a more straightforward and consistent way to select options and can assist with tasks such as applying for leave, submitting claims, requesting tax certificates, and approving inbox items. Pacey is particularly useful for blue-collar workers who may not access self-service features and can be accessed internationally. In addition to these benefits, Pacey is secure and compliant with data privacy regulations such as POPI and GDPR.

6. Greater focus on employee experience:?

As the war for talent continues, it is expected that employers will place a greater emphasis on the employee experience, including their payroll experience. This could involve offering more flexibility and convenience regarding payroll processes and options. For example, employers may allow employees to choose their pay frequency or access their earned wages before payday. Employers may also offer additional resources, such as financial planning and budgeting tools, to help employees better manage their financial lives.

In conclusion, the payroll industry is set to see some significant changes in 2023, with increased use of Technology, a greater focus on Compliance, and the growing importance of data security. These trends are already well underway and are expected to accelerate in the coming year. Companies that want to stay competitive must adapt and invest in the right tools and systems to support their payroll operations. If you want to learn more about software that can help future-proof your business, don't hesitate to contact us. We would be happy to provide you with more information and guidance on staying ahead of the curve in the fast-changing world of payroll.