Payroll Management: Companies need innovation to avoid sanctions

The management of payroll and payroll needs to be renewed in many companies.

According to the results of the Alight 2024 Company Payroll Complexity Report, in fact, more than half of the surveyed companies have incurred penalties in payroll compliance over the past five years.

The need for companies to adopt software tools for payroll management is evident from other data: 19% of companies still use outdated manual or paper processes. And the extent of innovation is limited to spreadsheets, in practice Excel, in 51% of cases.

Innovating Payroll Management

However, many companies are working to streamline procedures, with some interest in the cloud. Only 26%, however, are already in the cloud.

And only 8% of companies plan to use artificial intelligence in compensation management processes in the coming years.

Top Priorities for payroll management

The surveyed organizations have identified the integration of payroll and benefits into a single platform as the top priority, followed by employee data analysis and the implementation of automatic reporting mechanisms.

The challenges related to payroll increase when a company operates in multiple countries: as markets grow, so do the regulatory differences to be aware of. And, with the numbers at hand, so does the likelihood of penalties.

If you are interested in this topic, give a look at this software lists:

Software for human resources management.

The study involved approximately 300 payroll professionals and stakeholders to understand the key aspects of the operationality of this sector, including the number of countries where companies process payrolls and the technologies used.