What is the state of payroll, and how will the profession evolve in the future? PwC Canada’s report brings, The Future of Payroll, into focus, using comprehensive research to explore how payroll must pivot to succeed tomorrow. As a critical contributor to the economy, payroll can be a driver of technological adoption, innovation, and growth. But, the profession will need to adapt to four key trends that will have a major role in reshaping payroll in the future.
THE CURRENT STATE OF PAYROLL
The “under-the-radar” nature of payroll belies its complexity and importance. Understanding the current state of payroll — the way it functions, the technology used, the measurements tracked, the complex nature of legislation and the challenges of the work — sets the stage for what the future of payroll might look like.
FUTURE PAYROLL OPERATING MODELS
Will the new payroll operating model have a digital core, with payroll professionals taking a highly consultative role that is seamlessly integrated with the HR/ Finance areas? The Future of Payroll explores how the future might take shape and what needs to happen to make it a reality.
FUTURE TREND #1: EMPLOYEE EXPERIENCE
In the future, providing an exceptional employee experience will be a high priority for all functions, but particularly payroll. That’s because nothing creates disharmony and disengagement faster than payroll errors or delays. Employee expectations surrounding pay will continue to grow, and it will be incumbent on payroll to deliver more intuitive and personalized support to build employee trust in the payroll team.
FUTURE TREND #2: INNOVATIVE TECHNOLOGIES
With new technology poised to transform the payroll profession and a new payroll operating model on the horizon, payroll will be required to leverage technology that delivers more than administrative functions, while also augmenting the payroll professionals’ intelligence and decision making capability.
FUTURE TREND #3: STRATEGIC FOCUS
Payroll will take on a more strategic focus, using accessible and real-time data to drive informed business decisions. To help enhance the understanding and perceived value of what they do, payroll professionals will need to embrace the use of metrics for both strategic and operational activities.
FUTURE TREND #4: PAYROLL’S EVOLVING ROLE
Automation and machine learning will significantly change payroll. The work payroll professionals do will have to become more technical, analytical and consultative. To ensure they have the skills and experience to compete, payroll professionals will need new analytical and technical skills, as well as more awareness and knowledge of global payroll.