Payroll trends to look out for in 2022

Payroll trends to look out for in 2022

The years 2020 & 2021 have been like no other for the payroll industry, and 2022 will surely be more challenging and bring additional surprises and opportunities.Remote working is set to remain popular this year for both employees and organizations following the Pandemic. It is essential to look for changing payroll trends in the coming year that needs to be considered by payroll experts.

During this time, the future of businesses and the payroll sector is perhaps more dynamic and volatile than at any other point in history. The pandemic and its subsequent ramifications on operations and employee workload have created significant demands on payroll teams.

Our specialists at Brain Payroll have revealed the most impactful and game-changing payroll trends to look for in 2022. Let's explore what we can do to optimize payroll operations and make them "future-ready

#1 Changing Employee Benefits

The rise of people who work flexible hours and remote working has broken down many geographic barriers in the job and commercial markets. It is much easier for small to large businesses alike to look into new territories.

In 2022, many businesses will evaluate their employee benefits packages and make necessary adjustments. Employers will respond to Covid-19's insights and focus on well-being, mental health, holiday compensation, and professional development rather than in-person socializing.

Many end clients will invest more effort to distinguish themselves from other employers and offer a better working environment that genuinely appeals to contractors. Businesses are striving to claw back overhead spending following Covid-19, and organizations struggle to recruit for short-term roles in a candidate-led market.

From the payroll team’s perspective, organizations must be prepared to tackle the difficulties of paying staff in various locations and dealing with complex timesheets more frequently. Simultaneously, as the organization grows in different locations, its payroll requirements will remain an ever-evolving process.

Agile technology will be essential to keep track of the changing nature of employees and their needs. Many employees will come with expectations that need to be met to retain them, such as better work-life balance and greater flexibility.

#2 Fraud & Cyber Security

While the UK’s anti-money laundering regulations are significantly stringent. Online fraud in the UK increased by over 33 percent during the Pandemic and is expected to cost billions of pounds in 2022.

In 2022, cybersecurity will be a mandatory requirement and a critical aspect for any payroll provider. In the aftermath of Covid-19, many businesses have been reviewing their cybersecurity measures and implementing new controls to prevent attacks from occurring.

As financial crime becomes increasingly sophisticated with advancements in digital technology, the time is limited for organizations to get on board with technologies that can help overcome cybersecurity challenges.

In addition, Covid-19 has revealed the importance of "knowing customers" and data protection in a world where businesses are more vulnerable than ever before. 50% of all IT directors believe this is the most critical trend today, according to the Global Payroll Survey.

Recruiters and contractors must collaborate closely and involve end clients in the compliance process to reduce the risk of your organization falling prey to cyber crooks.

#3 Payroll Becoming More Than Just a Payroll

As payroll becomes more integrated and driven by advanced technology and analytics, it will significantly impact the payroll team as compared to the past.

By automating the payroll and HR functionalities, umbrella and contract management firms can empower their recruitment agencies and candidates:

The future of work will increasingly demand collaboration and communication among HR, finance, sales, and payroll services. HR and payroll systems will become more integrated, allowing departments to share data while simultaneously decreasing time spent on administration.

All of these will assist in simplifying processes, eliminating human errors from payroll operations, and saving both time and money for organizations. It shall give deeper insights which can improve payroll processes and provide opportunities for HR, finance, and other operational areas within a company to improve.

Our Payroll Solution is designed to handle the most complex operations with utmost ease and efficiency.

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