2022 Workplace Trends and the Role of Payroll
Clark Hoy | Sales Manager EMEA, CloudPay
The workplace has changed like never before over the past two years. The impact of the pandemic and the sudden move towards working from home has completely changed the way that companies view how, where and when their employees work. But while most of the focus has been on employee experience and work-life balance, the long-term shift towards more flexible ways of working have had a profound effect on payroll, too.
In this blog, we’ll take a look at five emerging workplace trends that are affecting payroll, and how they are influencing changes in how businesses approach their payroll processes.
The increasing popularity of hybrid work
A survey by Accenture has found that 83% of workers prefer a hybrid working model, where they can blend office-based and remote working and get the best of both worlds. This means businesses will increasingly be expected to facilitate smooth operations for employees wherever they work, and enable co-workers and teams to collaborate both in person and virtually.
For payroll, the more distributed nature of workforces makes compliance and payroll processes more complex, with different people working in different places at different times. Things that payroll will have to consider include:
How payslips are now distributed
How data is transmitted between people and departments, especially around hours worked
How payroll knows who is working when, and who is on annual leave
How to pay employees correctly when remote workers are spread across a wide range of countries and currencies
Management is becoming more data-driven
Throughout many areas of businesses, data is increasingly being relied on to provide detailed insights and drive more informed decision-making. Payroll should be no exception to this, especially as the level of detail within payroll data means there is huge potential for insights. However, this data remains relatively untapped and under-utilized in many organizations. Now, with more senior managers interested in exploring all the data at their disposal, payroll data should increasingly be called on to help them understand and address challenges within the workplace.
Employee well-being at the forefront
Connected to the previous point, payroll data can be instrumental in understanding how employees are feeling, not only about their work but in terms of their overall wellbeing and mental health, too. This is especially important amid The Great Resignation, where millions of employees around the world have quit their jobs in search of alternatives that fit in with their personal lives better. Payroll data can be analyzed to pick up trends in employee behavior and sentiment, helping employers understand what’s important to their workforce and make changes to improve satisfaction rates. As well as improving productivity, this can also make talent acquisition and retention easier.
Flexible, on-demand pay
Financial wellbeing is one of the many stresses that has been exacerbated by the pandemic. It’s no surprise, therefore, that employees want to explore every avenue possible to make ends meet, especially amid the current cost of living crisis and with energy prices on the rise. One way employers can support their workforce’s desire for flexible work is by introducing an on-demand pay model such as Earned Wage Access. This gives employees the independence to access their pay through an online platform and app whenever they want, accrue their wages day by day, and withdraw funds as and when they need to.
Placing importance on financial wellness
The emphasis that employees are placing on their financial wellbeing doesn’t stop with Earned Wage Access: many need support in understanding how to manage their money better, and reduce the stress and anxiety that can often come with financial worries. This is where a good financial wellness program can help, with payroll data being used to detect cases where employees need targeted support.
With the workplace changing so much at present, it’s natural that payroll has to change with it. Payroll needs to understand and respond to these trends so that it can play a leading role in how businesses operate in the future, and be a force for good in supporting employees both inside and outside the workplace.
With global payroll expertise and best-in-class solutions, CloudPay is your ideal partner for perfecting your payroll in a globalized, flexible world of work. Get in touch with the team to discuss your payroll needs today.
Clark Hoy | Sales Manager EMEA, CloudPay