Payroll might not be the most interesting area of business, but it certainly is one of the most important. As we step into 2024, experts from various industries have been weighing in on what the future holds for payroll systems.
From the integration of cutting-edge technology to shifts in regulations, these predictions offer a glimpse into how payroll might transform in the near future. Let’s dive in…
Our Experts
- David Ciccarelli, Founder and CEO at Lake
- Julie Lally, MD of Payroll at Ciphr
- Chris Kirby, Senior Manager at LACE Partners
- Tim Green, COO at TeamUp
- Lisa Richards, CEO and Creator Of The Candida Diet
- Jon Morgan, CEO and Editor-in-Chief of Venture Smarter
- Collen Clark, Lawyer and Founder of Schmidt & Clark LLP
- Samantha Odo, Real Estate Sales Representative & Montreal Division Manager at Precondo
- Simon Litt, Finance Expert at CFO Club
- Philip Edwards, Finance Director at MHR
- Neil Manuel, Payroll Manager at Monahans
- Kraig Kleeman, Founder and CEO at The New Workforce
For any questions, comments or features, please contact us directly.
David Ciccarelli, Founder and CEO at Lake
“Currently, I’m working with 14 freelance employees in produce design, software development and content creation.
“Two trends I’ve noticed are:
“#1. Prompt and Predicable Payments: Whether they be a freelancer or full time employee, people everywhere want prompt and predictable payments. People have commitments such as rent and car payments and ongoing expenses such as groceries and mobile phone plans. Freelancers appreciate having a set number of hours they can work each work for ongoing project with earnings being paid out in a timely manner.
“#2. Earnings Paid in the Local Currency: In working with freelancers around the world, they want their payments to arrive with the fewest fees possible, specifically currency exchange related fees. Whatever payroll platform you choose, ensure they can pay in the local currency of your employees or freelancers.
Julie Lally, MD of Payroll at Ciphr
“Many organisations are now adopting programmes to support their employees with their financial wellbeing. This growing trend is recognised as being equally essential to providing employees with mental health support, as the two are often interconnected. With the cost-of-living crisis still very much ongoing, financial wellbeing will continue to be a key focus in boardrooms across the UK.
“I think this is the start of another big evolution of payroll. In recent years, we have seen the introduction of pay on demand, enabling employees to access their earned pay ahead of their scheduled payday as a solution to avoid getting into debt. This alone, however, is not enough to support employees.
“2024 will see a further increase in demand for payroll solutions that seamlessly integrate with open banking apps, as well as budgeting and forecasting tools that can help support employees make sound financial decisions around managing their spending and monthly commitments and give them advice and strategies about avoiding getting into debt.
“And, in the future, with the increasing integration of AI into our daily lives, all employees could even benefit from a personalised digital twin that understands their financial habits, earnings data, and forecasting better than they do – enabling them to make even better financial decisions!”
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Chris Kirby, Senior Manager at LACE Partners
“It still feels like a transformational time for payroll.
“We’ve seen in recent years the uptake in pay on demand, with employees being paid at any point for wages they have already earned.
“We’ve also seen Employer of Record solutions become more popular as organisations seek off-the-shelf solutions for the complexities of operating globally, at a scale not worthy of creating a legal entity.
“These trends are likely to continue, but the big one for 2024 is likely to be AI. We are years, if not decades, into AI being present in payroll, however the days of a mere chatbot pointing you in the right direction are numbered.
“AI is likely to become more and more prominent as tech companies continue to seek simple solutions to complex problems. There is a way to go, not least due to a significant portion of the industry still operating manually and reliant on humans to carry out paper tasks, but for a lot of companies who have already streamlined and automated their HR and payroll service we will see AI starting to play a role in serving their employees, whether through the common large language models already in play, predictive issue identification, or even payroll calculation itself.”
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Tim Green, COO at TeamUp
“For 2024, I foresee that there will be an integration of payroll into holistic HR systems. This trend is about using consolidated HR and payroll solutions to simplify and streamline global operations. If you use multiple payroll providers, you’re more than twice as likely to encounter difficulties with management and global reporting. With an integrated solution, your human resources and accounting teams will have access to holistic, real-time data and standardised reporting and processes that minimise the risk of payroll errors.
“I also think there will be a shift towards bundling tech features and service options. In 2024, I see that the expenses associated with employees will continue to increase. That’s why employers in 2024 will turn to their payroll providers to assume a more substantial role in compliance and administration of benefit packages. The trend is towards bundling these services, removing the guesswork from manual calculations, and relieving the burden of trying to be a benefit, retirement, and HR expert. This shift towards bundling tech features and service options will streamline processes and improve efficiency for businesses.”
Lisa Richards, CEO and Creator Of The Candida Diet
“By 2024, a sophisticated surge of payroll technologies will transform the way workers obtain their paychecks; these systems emphasise user experience and accessibility. Catalysed by the blossoming remote work trend and gig economy—flexible payment options such as on-demand services are set to become commonplace allowing employees access to earned wages before conventional payday arrivals. Such advancements lead to worker empowerment: crucial for individuals managing chronic health challenges like candida offering financial flexibility necessary for timely investments in well-being instead of previously mandatory waits tied to strict paycheck receipt dates at month’s end.
“Predictive analytics will revolutionise the forecasting of workforce trends; businesses, by employing this data-driven method, can optimise resource allocation—ensure fair compensation practices—and bolster overall success. Businesses harnessing these technologies by 2024 anticipate witnessing a payroll efficiency surge of 15-20%, leading to cost savings and heightened employee satisfaction. Such payroll systems enable my business to manage labor costs more effectively and avert potential cash flow issues; equipped with AI-driven insights, I can reallocate resources toward developing innovative anti-candida products and services—thus enhancing the impact of my business on our clients’ health.
“The digital age demands our full attention to data security and privacy, particularly within payroll systems. I anticipate that 2024 will introduce enhanced security protocols in these services: cutting-edge encryption and multi-factor authentication are designed to protect sensitive employee information. This effort transcends the mere protection of financial details; it’s about building trust between employers and employees—a vital component in every business, including mine where personal health data is at stake.
“Businesses, finally acknowledging the importance of staff health, are anticipated to accentuate employee wellness; correspondingly, payroll systems will adapt—integrating extensive well-being programs.”
Jon Morgan, CEO and Editor-in-Chief of Venture Smarter
“One of the biggest changes in Payroll in 2024 will be the consolidation of complex human resources (HR) systems. This is becoming increasingly important as businesses seek to streamline their operations and improve efficiency. By bringing payroll under the same umbrella as other HR functions, companies can access real-time data and standardised reporting, reducing the risk of payroll errors. This kind of all-in-one platform allows businesses to manage payroll, HR, compliance, and more for their entire workforce in a single, unified system.
“Another trend that is set to shape the future of payroll is the increased investment in AI and automation technologies. These tools have the potential to revolutionise the way payroll is processed, making it more efficient and accurate, and ultimately improving the employee experience. Automation can significantly reduce the amount of manual tasks involved in payroll processing, freeing up payroll professionals to focus on more strategic, value-added work.”
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Collen Clark, Lawyer and Founder of Schmidt & Clark LLP
“One of the biggest changes in Payroll in 2024 will be the increased use of automation tools. As businesses strive for efficiency, we’ll likely witness a surge in the adoption of artificial intelligence and machine learning applications in payroll processes. These technologies will streamline tasks, reduce errors, and ultimately make the entire payroll management system more accurate and time-effective.
“Moreover, the concept of remote work, which gained substantial momentum in recent years, will continue to influence how payroll functions are carried out. With a growing number of companies embracing flexible work arrangements, there will be a heightened emphasis on developing payroll systems that seamlessly accommodate remote employees. This evolution will not only address the logistical challenges associated with diverse work locations but also ensure compliance with varying tax regulations across different regions, making the payroll process more inclusive and adaptable.
“Lastly, employee expectations around financial wellness are evolving, and this will undoubtedly impact how payroll is perceived and managed. Companies will likely integrate more comprehensive financial well-being programs into their payroll offerings, going beyond mere salary transactions. This could involve providing personalised financial advice, offering early access to earned wages, or incorporating benefits that contribute to employees’ overall financial health.”
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Samantha Odo, Real Estate Sales Representative & Montreal Division Manager at Precondo
“One way Payroll will evolve in 2024 is in the shift towards more employee-centric payroll systems. With the changing dynamics of the workforce, there’s a growing emphasis on personalisation. Employers are exploring ways to offer customised payroll experiences, allowing employees to have more control over aspects like payment schedules, benefits allocation, and even real-time access to financial data. This move towards a more individualised approach enhances employee satisfaction and engagement.”
Simon Litt, Finance Expert at CFO Club
“I believe that 2024 will see: Greater flexibility in when/how employees get paid, Fewer traditional payroll jobs , More new payroll positions.
“I’ve seen predictions that payroll costs will increase over this year due to increased demand for talented labour. However, I believe these predictions are oversimplifying things.
“Many of the workforce’s young entrants – particularly those in Gen Z – look beyond pay when evaluating new opportunities. Of course, they want to be well compensated but, even more so, they want flexibility for when they get compensated.
“On-demand pay is rising in popularity as younger generations work to make ends meet. Being able to respond to this need proactively is a great way to get (and keep) talent without handing out bigger cheques.
“On the topic of flexibility, I’d be remiss not to mention AI.
“Payroll teams are changing as data entry and management positions are replaced by data engineers who can implement and manage AI-based payroll systems. These are intended to analyse real employee behaviour and flag items that can help your business – such as categorically underutilised benefits – while also helping reduce clerical errors and quickly manage employee questions about payroll.”
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Philip Edwards, Finance Director at MHR
“The world of payroll is poised to undergo a transformative change in 2024, driven by the growing trend of flexible work arrangements and a heightened focus on financial wellbeing. The traditional nine to five work structure is becoming outdated, with an increasing number of gig workers and freelancers reshaping the employment landscape. Recognising the need for compliance and financial support in this dynamic environment, payroll services are set to embrace flexibility.
“Financial wellbeing has emerged as a paramount concern, with only 40% of organisations currently viewing payroll as well-equipped to address financial needs of employees, according to MHR research. In response, companies are expected to adopt innovative measures such as earned wage access (EWA). EWA offers employees the flexibility to access their earnings throughout the month, rather than waiting until the end. A poll by MHR found a third (33%) of employees said having control of this kind would help to reduce stress about their finances.
Finally, the integration of payroll in HR, and finance departments will play a pivotal role. Organisations excelling in financial wellbeing are those where these functions collaborate seamlessly. As the workforce landscape continues to evolve, the evolution of payroll in 2024 will prioritise flexibility, real-time access, and collaborative strategies for enhanced financial wellbeing.”
Neil Manuel, Payroll Manager at Monahans
“Payrolling Benefits We’ve already seen a huge uptake in payrolling benefits, and we anticipate that they will become increasingly popular in 2024. Eventually, HMRC aims to make this area function in the way that benefits are processed–in real-time, meaning that tax deductions and tax codes are applied live, rather than the following year.
“Payroll will become increasingly cloud orientated. There has been a massive shift in the market and many software providers have already made the decision to supply a cloud-based software solution. This comes with a plethora of advantages including allowing anyone with an internet connection easy access to payroll. This means that all parties can access the specific parts of the system that they need. For instance, employee self-service portals allow employees to access their payslips, P60s and tax forms, not only benefitting the employee, but also reducing the number of payroll-related inquiries–saving payroll teams a significant amount of time.
“Artificial Intelligence (AI) is of course one to watch for the years to come, with the obvious benefits being the amount of time saved for both bureaus and businesses. The ‘automated run’ is one of the major game changers brought by AI, which in certain cases will allow payroll to be run behind the scenes without the need for human intervention. This can include processing payroll, submitting to HMRC and pension uploads all being completed using AI.
“We are likely to see remote working becoming more widely accepted within the payroll field in 2024, as companies and software providers look to find ways to attract and retain the talent needed for them to grow and to stay abreast with evolving changes.”
Kraig Kleeman, Founder and CEO at The New Workforce
“In 2024, payroll’s getting a significant upgrade! It’s way more than just number-crunching now. Thanks to some tech like AI and machine learning, calculating paychecks is fast and intelligent, offering tips to keep your finances on track. And with blockchain, every detail in your paycheck is precise and secure.
“Staying on top of payroll rules is a breeze now, too. The new systems are always up-to-date, ensuring your private info stays private. Plus, they’ve got some neat tools to help you manage your money better and even grab some of your pay early if needed.
“Are you working with an international team? No worries! The latest global payroll solutions handle all the tricky stuff, from currency differences to local tax rules. And companies are thinking green, swapping paper slips for digital ones and offering eco-friendly investment choices.
“So, payroll in 2024 isn’t just about getting paid. It’s about making life easier, keeping your data safe, and helping you and the planet stay healthy.”
For any questions, comments or features, please contact us directly.
