Just about anything involving large amounts of data processing is realizing a dramatic makeover, and payroll management is not an exception to this paradigm shift. The combination of high-speed Internet, broadband connections being plentiful and commonplace, software used for payroll processing, and cloud resources are all converging to a point where technology can now make huge differences in payroll processing efficiency. That saves people time, money, resources and most importantly, reduces mistakes that frequently occur with manual processes.
Handling Data from Anywhere
The cloud, or more accurately the proliferation of software as a service made widely available through Internet-based tools, has allowed companies some of the most powerful and wide-scale flexibility possible. Just five or ten years ago, many of the software functions that can be handled now through website portals and platforms didn’t even exist, much less with a dependable secure channel to protect that sensitive information.
Much of this has been made possible with a strong push by major companies towards online database tool construction and bridging of channels between different software online. These bridges, better known as application programming interfaces or APIs, have made it possible to connect otherwise disparate systems together online as well as allowing users to utilize their profiles and data back and forth between systems as well. It’s because of APIs that cloud functions work seamlessly as one shifts from one system to the next, from cloud to desk computer to mobile device and back. And all of the above happen because of the Internet as a traffic backbone.
With flexibility in place, employees can input their time from anywhere, and HR or contracted support can take the same data and process it timely without physical barriers or logistical delays.
Top Ten Best Picks for Payroll Services
Big Data Treasure Hunting
HR has long been known as a function that is record-heavy, especially in small business payroll. Unfortunately, all of those records are typically in paper form or kept in disparate systems that don’t talk to each other, making it hard to consolidate a top-down view of an entire employee’s career arc, much less seeing overall labor payroll trends for a company as a whole. Now, with the combination of database-heavy tools that are also holistic and cloud-based, suddenly reams of data that were previously fragmented have been consolidated. And that means HR offices can now engage in deep big data trend analyses that were not possible before without a lot of time and effort manually plugging everything into a one-off spreadsheet or similar. Instead, the big data is consolidated, crunched and analyzed as it grows and changes, allowing HR managers the ability to see changes as they occur versus out-of-sync reports generated far too late to act on.
Artificial Intelligence is Appearing
Companies that are trying to push the cutting edge are also applying artificial intelligence to payroll processing. The most common form of AI tends to be in user support, providing employees and HR processors read/go-to help with online tools that is responsive to their questions and immediate needs. However, AI can also be applied to business online payroll through error-checking, redundant processing, distribution and labor accounting processing, and compliance controls. AI can also be used for warning systems and monitoring for variations beyond acceptable data behavior norms. That allows HR managers through online payroll services to catch problems before they become big issues for damage control. Most interestingly, AI is becoming increasingly powerful for form input, providing learning capability over time that is specific to how a given company or agency operates.
Dashboards, Visualization and Portfolio Management
HR and payroll providers for decades have been managing payroll data in the form of tables. Most people describe the same as spreadsheets or system reports. However, the latest technology is allowing the same data as it gets created and changes over time to be visualized with easy to use, intuitive dashboards. The same is particularly useful for managers who need to see at both a granular level as well as top-down view at the same time. Both give new access to existing information that otherwise would have taken days if not weeks to put together via traditional charts and written reports.
Portfolio management tools for employees are reshaping how payroll interacts with the employee personnel folder as well. The two areas used to be distinct, oftentimes needing to be put on the same table to be seen holistically to understand what was going on with an employee. Now, the best payroll software is also part of portfolio software tools that bring all the aspects of an employee together to see both their payroll cost transactions and their career arc in one place. This improves access to employee information as well as retention planning tremendously.
Lots of Choices Available Now
With the proliferation of new cloud tools, better technology, APIs, and data mining capability or visualization, an entire new generation of payroll services for small business, payroll companies and tech data experts have become available. While this might seem a bit confusing at first regarding how to pick the best payroll service from the crowd, the key factor is in focusing on which provider comes with vetted expertise to provide a critical partnership in payroll processing and bring the right tools together competently. Ideally, a company should want to get away from manual processing, take advantage of automation as much as possible, and pick a payroll service provider who can both deliver quality payroll management as well as the data information insights that function contains. The best payroll service won’t always be the first website visited or tool reviewed. However, by taking the time to match a provider well to a company’s needs, the dividends in tech can transform how any organization with employees manages their payroll going forward.
