The latest trends in technologies are making the world more interactive and closer to each other. Especially in the business world, the use of technologies like blockchain, cloud computing is helping with the expansion across continents.
When a company in London, opens its subsidiary in Paris, apart from different infrastructure, all other business aspects can be run on a shareable basis. For instance, using a blockchain technology, the financial system at both office can run in available real-time distributed data.
The payroll systems across the globe are one of the many sections of business who have a complete makeover while they entered the year 2018. For those who are still stuck in the traditional or outdated legacy technologies for managing the payroll services, here are few reasons why they might think of bringing the change.
Change in data protection rule (changes in GDPR)
Every business which uses internet for its internal and external functions have already implemented the new General Data Protection Regulation (GDPR) which is enforced since May 25, 2018. It contains modern laws to protect the rights of individual’s personal information, being shared and saved over the internet.
With the change in technology, updated GDPR was need of the time. It alters the way businesses and public-sector organisations can handle the information of their customers and gives them more control over their information.
When payroll is handled by third-party software, it is important that they should comply with the changes of GDPR to handle the business sensitive information. While approaching the expert payroll services in the UK, make sure the chosen company provides the GDPR compliance in their payroll management solutions.
Blockchain – a distributed ledger for accounting & payroll
The blockchain is a most popular technology of this century. In terms of its usability, Blockchain technology fits best in economic transactions as it is a digital ledger that is programmed to record anything which is quantified with a value. It is a secure distributed ledger that provides transparent and safest way of representing & storing financial values.The payroll outsourcing companies could use Blockchain technology at the back end for the high-end performance driven payroll systems.
More secure & robust cloud technologies
Tax and other legislation that affects your employees, your payroll and business are changing all the time.To keep these changes available to all the concerned entities (your company’s accountant, stakeholders, employees, HMRC) in real-time so that each of them hasthe latest version of payroll values and principles, is a job well-handled by technologies running on the cloud. The cloud offers advantages like high scalability, affordable infrastructure, data security and instant troubleshooting. All these advantages are much needed within a payroll system.
Artificial Intelligence (AI) makes its way into payroll systems
Payroll activities are repetitive in nature and each pay cycle demands accuracy, timeliness and well-planned coordination across multiple organizational activities. There are some dependent and few independent calculations that may be the result of contractual changes, permanent salary change, benefits, temporary changes like the bonus, expense, overtime payments, attendance records, reconciliation, and deductions.
The Artificial Intelligence (AI) when incorporated in a payroll system, tend to inculcate the efficiency of “self-learning”. Its success can be judged from the fact the on implementing AI within the payroll, the completion rate (work flowing straight through) on absence has become 87%. With self-learning, a payroll system becomes capable enough to identify problems, soon enough to prevent crisis management.
The year 2018 is a year of maturity, where the advent of technology has captured the attention of every business owner and strategist. They are convinced to invest more in their IT services to stay high up in the competitive market. We understand payroll is a sensitive internal matter of a company, but with improved GDPR in place, you can dive into the world of cloud services and payroll outsourcing.