Caution! Protect your Payroll. Global Risks Foreseen in the Coming Years

Once viewed as a “back office” function, payroll is becoming an increasing focus for business strategy and success. In recent years, they have been central to coping with dispersed workforces and fluctuating employee working patterns. Therefore, business leaders are now looking for payroll to influence other business-critical areas.

Cybersecurity, legislation and driving strategy, and scaling operations are priorities for senior payroll leaders, revealing research conducted by online payroll services, Automatic Data Processing (ADP), and workforce management software provider.

Around 1,463 business leaders responsible for payroll to identify the factors which drive global payroll in the upcoming two to three years, showing that around 44% people plan to improve data security, followed by 36% for the employee pay accuracy, and the rest 32% for reporting capabilities.

The Potential of Payroll

“According to our data, organizations in India and the Asia Pacific region are gearing up to address similar opportunities and challenges in the near future. However, this could lead to increased strain on the existing shortages of cybersecurity, human resources, and operational skills, as companies compete to attract top talent on a global scale.”

• Rahul Goyal, MD at ADP

Cyber Secure Payroll

After high-profile data breaches by global companies like Uber, Twitter, and many other Indian organizations, it isn’t a big surprise that data security topped the section of planned payroll improvements in the upcoming two to three years at the rate of 44%.

Protecting payroll has become a need and a present danger for businesses. Around 61% of global respondents report that the payroll operation was halted and impacted by a cybersecurity breach at least once in 2 years.

“According to our survey of senior payroll leaders, almost all (98%) believe that data security has become more crucial in the past year, and failing to protect data can lead to severe consequences. However, it is concerning to note that less than half of these leaders reported having a comprehensive contingency plan across all their territories.

The recent data breaches suffered by major global brands highlight the advanced techniques hackers use. This underscores the importance of partnering with specialized experts who have the expertise to safeguard payroll data.”

• Rahul Goyal, MD at ADP

Futureproof Payroll

Irrespective of global skills shortages, a looming recession, and other challenges, many companies are looking forward to scaling up their operations. For most organizations, this means that more and more people, approximately 36%, are planning to boost the accuracy of employee pay reporting.

In addition, around 31% of the number plan to increase employee pay timeliness.

These efforts work towards addressing the current issues, with nearly more than half of respondents (almost 56%) reporting that they need complete visibility of payroll performance, accuracy, and other data for international locations.

“The outsourcing of payroll can lead to a significant reduction in errors, which can save time spent on addressing employee concerns regarding the accuracy of their pay. However, the pandemic has resulted in more complex and variable working patterns, leading to almost half (45%) of respondents reporting an increase in employee payroll queries.”

• Rahul Goyal, MD at ADP

By working with payroll experts, you also help enterprises address the ongoing skills shortage, with around 48% adding that they need help in searching for payroll skills from outside of their enterprise.

Payroll that Scale

Consistent or accurate payroll practices are hindering global enterprises or the ones with global ambitions. Around 30% of HR and finance leaders report needing more confidence if their payroll systems can support their geographic expansion and growth plans.

“It can be tempting to opt for the quickest solution when setting up payroll in new markets. But this can be a false economy. Outsourcing to payroll experts who offer consistent and integrated systems, while also accommodating regional differences, provides businesses with a global perspective of their payroll.”

• Rahul Goyal, MD at ADP

Payroll is greatly influencing strategy and success. However, companies must exercise caution as global risks are foreseen in the coming years.

News Source- People Matters