B2B Payments

One-Third Of Employers Use Decade-Old Payroll Technology

A new survey has found that one-third of employers are using payroll technology that is at least 10 years old. The “Evolution of Payroll Technology Survey,” conducted by Kronos with the American Payroll Association, polled nearly 1,000 payroll professionals from small, mid, and enterprise-size organizations (SMBs) across all industries.

The results found that outdated, manual processes and legacy payroll solutions limit a payroll department’s ability to track and report key performance indicators (KPIs), as well as affect their ability to keep up with today’s speed of modern business. Though 49 percent of all organizations surveyed admitted to not tracking KPIs in their payroll department, 29 percent polled use payroll systems that are 10 years old or more — the same age as Apple’s first iPhone.

Malysa O’Connor, senior director of Payroll Practice Group at Kronos, said, “Many payroll professionals find themselves in a challenging predicament. They’re forced to rely on outdated solutions that provide limited visibility into payroll’s impact on overall organizational performance. Because of this, they are unable to build a proper business case to secure the investment needed to procure the modern, digital solutions required to keep up with today’s speed of business. Organizations that proactively invest in new payroll tools, that deliver in-depth analytics and an engaging employee experience, will unlock yet another door for improved performance.”

The survey also discovered that "one in 10 respondents use a payroll system that is less than a year old, and 27 percent use solutions that are less than three years old."

As for a company's biggest challenge, mergers and acquisitions were reported to be the hardest to overcome with their current payroll system, followed closely by changes in business goals, leadership and regulations.

In the future, those surveyed would like to work with "digital payroll solutions that have self-service options for employees, provide on-demand reporting and analytics, track seasonal and contingency workers," and enable leadership, operations and finance to include payroll data within their own reports.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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