The recent changes to statutory pay under the Employment Rights Bill reforms are among a host of new legislative shifts that payroll teams will have to adapt to over the coming months and years.
But new analysis from CloudPay, the specialist global payroll provider, shows that businesses that fail to modernise their tech now will only face growing challenges.
While the new Statutory Neonatal Care Pay legislation and changes to Statutory Sick Pay rulings have already been rolled out, CloudPay has warned that many firms aren’t yet prepared for future legislative amendments.
According to its recent Tech-Talent-Equilibrium Report, more than 40% of businesses are facing significant challenges with their payroll technology.
Despite widespread recognition of its potential and benefits, which include the ability to more easily amend processes and payments, many businesses either have insufficient payroll technology in place, or are struggling to maximise its capabilities.
As John Pearce, Chief Customer Officer, at CloudPay explained, it’s crucial that payroll tech investment is prioritised before more changes are rolled out.
Pearce said, “The latest legislative changes in the UK may now be in force, but there’s still much more to come, and the administrative burden that payroll teams face when such amendments are announced shouldn’t be underestimated. Technology – delivered alongside the right balance of high-performing payroll people – can streamline a large proportion of this burden, but unfortunately many businesses are still struggling to find this equilibrium.
“It’s now more crucial than ever that payroll functions innovate, rather than wait. Taking a reactive approach to changes that are happening across the globe is simply unsustainable and puts professionals on the back foot. Having the right balance between people and technology in payroll will provide the foundations to be agile.
“Payroll needs to be nimble, adaptable and so much more in the current market. While we are seeing some innovation, there are also far too many businesses that are yet to properly invest resources and funds into the appropriate payroll technology. The return on investment on best-in-class payroll technology is significant, both financially and in terms of employee experience, which is why immediate action is needed now, to mitigate unnecessary errors and stress.”
