Spike in payroll technology investments!
by Susanna Planas B | 4 min read
The Covid-19 pandemic has transformed workplaces across the globe. At the onset of the pandemic, most businesses found themselves unprepared for its immediate impact. Consequently, for a majority of the firms, the short-term implications of the pandemic were severe.
Now, as the pandemic eases its grip, businesses recognize that several workplace processes have been irreversibly reset. Consequently, businesses now need to rethink strategies for managing their workforce. The need to assess the impact of the changes wrought by the pandemic on the organisation's strategic goals and operational processes has become an inescapable imperative. Undertaking such an assessment will enable firms to identify areas requiring immediate attention.
Businesses that responded effectively to the changes necessitated by the pandemic succeeded in ensuring business continuity and stood out from the competition. The crisis accelerated the digital transformation of firms across sectors and regions.
The onset of the pandemic compelled firms to send their workforce home en masse. Businesses rapidly scrambled, almost overnight, to adopt technology solutions that would enable their employees to work from home. Firms undertook the rapid digital transformation of their internal operations and customer and supply-chain interactions. Investments in technology are no longer driven merely by the need to obtain cost efficiencies but are increasingly viewed as a strategic requirement for business success.
The digital transformation of the workplace included the digitization of HR and payroll processes. Investments in HR technology solutions and payroll automation were driven by the need to achieve four key outcomes:
Technology now enables payroll management, talent management, performance management, leave management, etc. Even the outlook on technology has undergone a radical shift. Earlier, technology was seen as a disruption that one had to train oneself to understand and deploy. The current outlook towards technology is to view it as an enabling force.
Reflective of this changed outlook, the thrust of investments in payroll tech is a focus on employees and not on payroll administration. The key drivers of investments in payroll tech include:
Digitization of the payroll function is no longer negotiable for businesses. The disruption caused by the pandemic has brought to the fore the importance of digital transformation of workplace processes for operational efficiency. At the same time, poorly thought out and badly implemented digital transformation can cause more harm than good. Planned payroll and HR tech investments can position firms to gain a competitive edge and thrive in the changed technology-first business environment.