How Unified Solutions Can Prevent Startups From Missing Payroll

Unified pay solutions are transforming how companies manage payroll by combining payroll, payments, and financial wellness aspects like Early Wage Access (EWA) into one system.

This integration offers clear visibility for payroll teams and enhances the employee experience. According to Everest Group’s recent research, supported by CloudPay, companies that have adopted this approach have seen reduced administrative costs, improved visibility, and lighter workloads for payroll teams.

“Organisations are seeking global payroll partners to manage cross-border transactions and diverse regulations,” reveals the research, noting that outsourcing employee payments has become increasingly popular.

 

Key facts:

 

• Unified pay solutions lead to lower administrative costs and improved team visibility.
• 74% of companies outsource employee payments.
• There is a trend towards enhancing stakeholder experiences and using real-time data.

 

Why Adopt Unified Pay Solutions?

 

The demand for unified pay solutions is growing due to their ability to streamline processes and modernise the payment journey. Matt Hillier, EVP Product at CloudPay, mentions that the lack of visibility and reporting capabilities in traditional payroll systems hinders operational and strategic decision-making.

Unified pay solutions address these issues by providing clear visibility and integrating multi-country payroll requirements, thereby enabling businesses to adhere to regional nuances while delivering a consistent experience across borders.

 

Insights include:

 

• The top objective for payroll leaders in 2024 is accurate and timely pay processing.
• 80% of payroll leaders struggle with using payroll reporting for informed decision-making.
• Unified pay solutions can really reduce errors and administrative burdens.

How Does It Impact Employees and Organisations?

 

The benefits of unified pay solutions extend beyond simplifying payroll processes. They play a big role in improving employee satisfaction and loyalty by bringing them a faster, more personalised pay experience.

The Everest Group’s report shows that 8 out of 10 respondents prioritise improving employee experience. “Unified pay solutions are not just about easing payroll processing but also about enhancing employee well-being,” says Samarth Kapur, Practice Director at Everest Group.

Adoption rates may still be in the early stages, but those who have implemented these systems report better employee engagement and operational efficiency.

 

Key benefits:

 

• Improved employee financial stability with features like EWA.
• Enhanced organisational efficiency and global compliance.
• Greater insights leading to better strategic decision-making.

 

What are the Challenges and Solutions?

 

Despite the advantages, adopting a global payroll strategy presents challenges, particularly in managing the nuances of pay compliance across different jurisdictions.

The Everest Group highlights that only a small percentage of businesses in APAC and EMEA opt for a global solution due to these complexities.

However, a unified approach that offers full visibility and follows the regional regulations can improve the consistency of payroll experiences across borders. “The right unified pay solution addresses these challenges by providing real-time visibility and ensuring compliance,” Hillier points out.

 

Main challenges:

 

• High error rates due to manual interventions.
• Complexity in managing diverse regulations across regions.

 

Unified pay solutions offer a way for businesses to simplify their payroll tasks while also improving the satisfaction of their employees. Addressing problems with an all-inclusive strategy helps businesses to enhance their workflow and gain a competitive edge.