The latest Global Payroll Insights report from Payzaar provides a comprehensive look into the evolving landscape of the payroll industry. Here are some of the key highlights and trends shaping the future of payroll management.
Top Priority: Automating Inbound and Outbound Data
Despite advancements in technology, automating data processes remains the top priority in the payroll industry. Inbound data alone accounts for up to 60% of the time spent in the payroll cycle. A recent poll reveals that 65% of respondents process five or more data sources per country, per payroll period. This underscores the importance of focusing on better data at the source, as 51% of respondents identified poor data quality as the main root cause of payroll errors.
Top Skill: Attention to Detail
Payroll professionals have always been known for their keen attention to detail, acting as ‘detectives’ to ensure accurate, compliant, and timely pay. While this skill remains crucial, its application is evolving with technological advancements. The ability to meticulously check and recheck data is still essential, but now it integrates more seamlessly with automated systems to enhance accuracy and efficiency.
Balancing Standardization and Flexibility
According to the Global Payroll Survey by EY, the number of organizations with a formalized payroll strategy has increased from 61% in 2019 to 67% in 2021. For 2024, 28% of global payroll managers prioritize implementing global standards. This highlights the ongoing challenge of balancing standardization with flexibility. The industry benchmark is to standardize at least 75% of controls, yet 63% of respondents have not reached this level of standardization, due to local practices and nuances.
The Importance of Better Data at Source
Improving data quality at the source is critical to reducing payroll errors. With 51% of respondents pointing to data quality issues as the primary cause of errors, there is a clear need for enhanced focus on this area. Better data management at the source can significantly streamline the payroll process and reduce the likelihood of mistakes.
Conclusion
The Global Payroll Insights report emphasizes the ongoing evolution within the payroll industry. Key priorities such as automating data processes and maintaining meticulous attention to detail are crucial for the future of payroll management. As global payroll managers strive to balance standardization and flexibility, improving data quality at the source will be essential to minimizing errors and enhancing overall efficiency. These priorities will continue to shape the payroll landscape, driving advancements in accuracy and process efficiency across the industry.
