For years or decades, payroll has been—for lack of a better term—consistent. After all, it has to be. Employees need to be paid reliably, accurately, and on time, often making it feel like the only room for improvement is to make the payroll process more accurate and less human-reliant.
However, a recent article featured on PYMNTS.com has found that companies might be underutilizing the data generated and failing to see the potential for value-added payroll. As the article notes,
“[…] recently, innovators have begun to shift their attention to more value-added functionality within payroll solutions, positioning the payroll function as a tool that supports employee attraction, retention and satisfaction. While organizations of all sizes and industries may understand this value proposition, payroll is rarely at the top of the priority list when it comes to investment in new technology for the back office.”
Driven in part by the pandemic, new solutions might be solidifying their position not only in the company HR Tech stack, but in the FinTech stack as well.
From Speed to Satisfaction: Payroll Fits the FinTech Model
As we discussed in a recent blog, there is a ton of room for improvement in the HR space. While many controllers may be looking to outsource manual tasks in the HR department, they may see one space in the HR department as improvement-worthy as AP, AR, and more.
As FinTechs nudge businesses away from legacy tools, their value-added offerings have largely focused on making things move more quickly. Increasingly, this means integrating capabilities of early access to wages and real-time payments to professionals, functions that are also seeing growing demand as the makeup of the workforce itself evolves with gig workers and contractors.
However, payroll is more than processing speed. Faster payments initiatives—which are focused on the bank portion of the payment—are becoming more prevalent. In turn, this creates a variety of potential for new, value-added services including early access to wages and same-day payouts—critical to keeping the best employees around when the economy bounces back.
But from here, companies can go further to embrace solutions that take this innovation further. Integrating payroll and HR solutions with a broader base of products help firms better use data, deliver real-time information, and help HR and finance professionals better understand this often-misaligned process.
Putting Your Company in a Position for Success: Spend Well with Advice from the Controllers Council
Your firm relies on your smart financial decision making. But without the right people, processes, and technologies, you’re swinging blindly. We hope this look into how innovation in the payroll world can lead to innovation that crosses departments and sets your business up for success. Get to know more by following the Controllers Council for all the latest.