According to the latest research report from Information Services Group (ISG), U.S. enterprises are rapidly adopting new payroll technologies and services to address complex challenges, often faster than companies in other regions. The 2024 ISG Provider Lens Payroll Solutions and Services report highlights how shifts in enterprise management and employee experience – particularly the rise of remote work – are transforming payroll into a strategic function.
- Outsourcing Payroll
- Many enterprises are outsourcing payroll components to access the latest technologies due to new demands and limited internal resources.
- AI and Machine Learning Integration
- The use of AI and machine learning is enhancing payroll technology, leading to greater accuracy, efficiency, and intelligence in processing.
- Regulatory Compliance
- Increasing regulation, including equal pay legislation, is driving companies to prioritize pay transparency to attract talent and maintain employee relations. Real-time pay data updates and user-friendly dashboards are now essential.
- Data Privacy Awareness
- U.S. companies are becoming more vigilant about payroll data privacy. As regulations tighten, service providers are focusing on encryption, secure data storage, and access control measures such as multi-factor authentication.
- On-Demand Pay Adoption
- The U.S. market has shown quicker acceptance of on-demand pay, allowing employees to receive partial payments before the official pay period ends. Additionally, there is growing interest in applications that enable employees to review and correct their pay stubs prior to processing.
- Predictive Analytics
- The report discusses the increasing importance of predictive analytics and AI-powered personalized financial insights for employees, further shaping the future of payroll organizations in the U.S.
The 2024 ISG Provider Lens Payroll Solutions and Services report underscores the challenges U.S. enterprises face, including integration with legacy systems and the complexities of offering on-demand wage access. Notable leaders in the managed payroll services sector include ADP, isolved, Paychex, Paycom, Paycor, and Strada (formerly Alight). Additionally, EY has been recognized as the global ISG CX Star Performer for 2024, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey.
