In recent years we’ve seen major technological advancements that have positively impacted the working world, and with the rise of platforms like ChatGPT and other AI tools that are now on the market, this trend shows no signs of abating. However, one area
that has arguably remained static and relatively unchanged is payroll and financial management, particularly on the employee experience. But why is this the case, and how is this set to change in the future?

Until recently, payroll has often operated in silo to the rest of the organisation. This is, of course, within a wider context where the business world has shifted dramatically. In recent years, we have seen more pressure on the war for talent and skills
shortages; it’s now harder to attract and retain talent, meaning organisations need to work harder for the skills they require in order to grow. Businesses also face significantly more compliance and regulatory hurdles, and the introduction and subsequent
growth of hybrid and flexible working models is putting a strain on firms to meet the demands of their employees.

Concurrently, employee expectations have also shifted. As a consequence of these changes, they now have more choice in where, when and how they work and want to be employed by businesses that recognise their value. In truth, the lack of available skills
in the market means that employees now hold more power than they ever have done in the past, and specifically, they are increasingly looking for more control over their pay, and over how and when they can access their earned wages.

Traditionally, employees in corporate roles have had to wait until the end of the monthly financial cycle to access their wages, which seems bizarre and outdated in the context of the rapidly changing world of employment. Why is it that almost every other
area of the working world has shifted bar payroll?

This is particularly key in the current climate. You won’t need us to tell you that, on a purely financial basis, things are more challenging than they have ever been. Not just in the UK, but globally, professionals face varying degrees of cost-of-living
and wider inflationary and macroeconomic pressures. This has meant that more people want to be able to access their earned wages as and when they can, without having to wait for outdated cycles in order to pay for food and regular bills.

It’s also becoming clear that there is significant demand for greater degrees of financial education and an improved understanding of financial wellness. This benefits both sides of the employee–employer relationship. Staff get a better appreciation of how
to manage their finances more effectively. Meanwhile the organisations that provided these as yet underutilised perks can provide more value and assistance to the talent under their management and use payroll as an attraction and retention method, rather than
just a back-office tool.

Financial wellness isn’t just a standalone feature that enables those utilising the technology to benefit from a better understanding of how much money they have, how they can spend it and the hidden costs involved with major purchases like buying cars,
or homes. It also supports a broader level of wellbeing and can help professional users to feel better supported by their employer. Our offer delivered via our accessible CloudPay NOW app, for example, provides a consumer-technology feel to payroll and clear
information about where professionals’ earned wages are going, their level of take-home pay and improved accessibility related to how and when they can access it.

Providing greater degrees of education on aspects such as budgeting and how to manage finances during these challenging times directly benefits employees and can highlight that they work for a supportive employer, fostering greater degrees of loyalty amongst
their staff. While this information should arguably be provided within schools to people at a younger age, it isn’t, for varying reasons, and many people get to working age without having a clear understanding of how to avoid landing themselves in financial
turmoil.

It’s clear that the world of payroll has much more to offer to both employers and employees than it has historically done, and with growing developments in the world of FinTech it will be able to provide greater degrees of support to employees to enable
them to tackle the issues brought on by this challenging economic period. We hope that more organisations adopt a more holistic approach to supporting their employee wellbeing, with prudent financial management and a more modern payroll experience providing
a solid foundation for this in the future.

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• Source: https://www.finextra.com/blogposting/25399/why-a-more-modern-payroll-experience-is-needed-in-times-of-financial-difficulties?utm_medium=rssfinextra&utm_source=finextrablogs