A June 2024 PayrollOrg membership survey, sponsored by UKG One View, provides in-depth insights into global payroll management, highlighting the key challenges, barriers, and opportunities payroll teams will face in the coming year.
One of the most pressing challenges identified is the need to "do more with less," a concern for a third of respondents. This reflects the increasing pressure on payroll teams to optimize resources and enhance efficiency. Additionally, upskilling in new areas and supporting company expansion into new jurisdictions are significant concerns, emphasizing the need for agility and adaptability in payroll operations.
Operating across multiple countries introduces several hurdles, with legal and regulatory compliance challenges being the most significant, cited by more than 60% of respondents. Differences in payroll practices, regional regulations, and communication barriers complicate global payroll management. These findings underscore the importance of robust compliance frameworks and effective communication strategies.
To tackle these challenges, payroll teams need targeted support and resources. Investment in payroll technology solutions is crucial, as 67% of respondents indicated. Training and development for payroll staff and access to expert advice on global payroll best practices are essential. By equipping payroll teams with the right tools and knowledge, organizations can enhance their capabilities and ensure they are prepared to meet the demands of a global workforce.
Integrating payroll goals with overall business strategy is vital for aligning payroll efforts with organizational objectives. The survey reveals that most professionals prioritize this integration, while a significant portion emphasize the allocation of budget and resources for payroll initiatives. Performance metrics tied to payroll efficiency further highlight the importance of measuring and optimizing payroll operations. By embedding payroll objectives into the core business strategy, organizations can secure the necessary investment and support to drive their initiatives forward.
Technology plays a crucial role in bridging gaps between disparate payroll systems and processes. Integrating payroll systems and automation of repetitive tasks are seen as the most impactful technological interventions. Centralizing payroll data and leveraging real-time reporting and analytics further enhances operational efficiency and provides valuable insights for decision making. These technological advancements streamline payroll processes and empower payroll teams to deliver greater accuracy and efficiency.
Leveraging payroll technology provides numerous business benefits, including improved accuracy, enhanced compliance, and valuable analytics for Chief Financial Officers and Chief Human Resources Officers. It also significantly boosts the employee experience, aiding in retention and engagement. Meanwhile, acceptance of artificial intelligence (AI) continues to increase among payroll professionals, with over half already using, or are somewhat comfortable using, AI in their day-to-day activities and many are willing to embrace AI I tools for automation and real-time insights. This trend underscores the importance of fostering a culture of innovation and openness to new technologies within payroll teams.
Payroll vendors are instrumental in supporting payroll objectives, providing real-time visibility into payroll operations globally and automating processes to reduce manual input time. The ability to consolidate all payroll data and offer integrations with third-party providers further enhances efficiency and accuracy. By partnering with the right vendors, organizations can leverage their expertise and technology to drive payroll initiatives forward.
The June 2024 PayrollOrg member survey with UKG One View highlights the evolving challenges and opportunities in multi-country payroll management. By prioritizing the integration of payroll goals with business strategy, investing in technology, and embracing AI, organizations can enhance efficiency, ensure compliance, and improve the overall employee experience. As the complexities of a globalized business environment continue to grow, the support of payroll vendors and the adoption of innovative solutions will be critical in shaping the future of payroll management.