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You've worked hard this month, today it's payday!
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0/ Payroll seems easy peasy. As an employee, you work hard and you are paid (hopefully) at the end of the month. In fact, the calculation and execution of the monthly payroll are quite complex for the company.
1/ They see me Payrolling, they hatin'
Companies often use payroll providers to assist them with the calculation, the generation of tax documents, ensuring compliance with local payroll law, etc ..
Incumbents have been operating for a long time ( @ADP_FR founded in 1949, .. )
Companies often use payroll providers to assist them with the calculation, the generation of tax documents, ensuring compliance with local payroll law, etc ..
Incumbents have been operating for a long time ( @ADP_FR founded in 1949, .. )
2/ And let’s be honest, these players are way too complex for SMBs, not fitting current market needs and super expensive
The monthly repeatability and the inherent complexity of the task are the reasons why so many players have entered the market recently
@PayFit @PersonioHR
The monthly repeatability and the inherent complexity of the task are the reasons why so many players have entered the market recently
@PayFit @PersonioHR
3/ I see two big trends shaping the future of the payroll industry:
- The shift toward an all-in-one benefits platform for the employee
- Payroll data through API could precipitate a new wave of innovation in fintech
- The shift toward an all-in-one benefits platform for the employee
- Payroll data through API could precipitate a new wave of innovation in fintech
4/ Payroll as a platform
Payroll systems are an excellent entrance for innovation as they are centralized access to payroll, benefits enrollment, expense reimbursement requests, paid time-off requests, perf review, ..
Payroll systems are an excellent entrance for innovation as they are centralized access to payroll, benefits enrollment, expense reimbursement requests, paid time-off requests, perf review, ..
5/ They’ve recently expanded from past core offerings to a bundle of services for employees. And some partnerships are being built between market challengers ( @Payfit <> @avec_alan)
6/ Employee perks & engagement
Why using a complex internal webpage to get employee perks/rewards (ex: gift & travel vouchers)?
These perks are now fully integrated into the payroll system and employees have clear interfaces to access them
@swile @leeto_benefits @Cobee_es
Why using a complex internal webpage to get employee perks/rewards (ex: gift & travel vouchers)?
These perks are now fully integrated into the payroll system and employees have clear interfaces to access them
@swile @leeto_benefits @Cobee_es
7/ Salary on-demand
New players now partner with corporates (HR software providers and payroll systems) to enable flexible access to earned wages.
Whenever needed, receiving a few days in advance of your salary may get you out of trouble.
@Payflow_es
New players now partner with corporates (HR software providers and payroll systems) to enable flexible access to earned wages.
Whenever needed, receiving a few days in advance of your salary may get you out of trouble.
@Payflow_es
8/ Crypto Payroll
Would you be up to be partially paid in crypto-currency? You may receive 1000$ this month, but perhaps in a year, those would be worth 10k$? Some companies are heading toward such a possibility (ex: Twitter)
@Payment_X @deel @Bitwage
Would you be up to be partially paid in crypto-currency? You may receive 1000$ this month, but perhaps in a year, those would be worth 10k$? Some companies are heading toward such a possibility (ex: Twitter)
@Payment_X @deel @Bitwage
9/ Pre-retirement saving
Retirement is an anxious time, especially from a financial point of view. It’s time to dust off your company's employee savings and retirement plans.
@epsor @Filib_fr
Retirement is an anxious time, especially from a financial point of view. It’s time to dust off your company's employee savings and retirement plans.
@epsor @Filib_fr
10/ Payroll data is extremely valuable
Even though there’s been limited innovation in the market, it’s important to mention that these payroll firms hold precious information about employees and their company: hourly wages, income history, employee headcount, total salary, ..
Even though there’s been limited innovation in the market, it’s important to mention that these payroll firms hold precious information about employees and their company: hourly wages, income history, employee headcount, total salary, ..
11/ More importantly, this data ultimately belongs to the consumer and some startups consider they should be able to share it for their benefit.
12/ Here are a few pain points possibly solved with payroll data:
- Income / employment / identity verification
- Lending
- Direct deposit switch
- Income / employment / identity verification
- Lending
- Direct deposit switch
13/ Furthermore, there are other related topics that could be improved with direct access to payroll data.
Let’s separate your existing internal software from the old external payroll mngmnt tool you use. With APIs, your internal software would simply embed payroll as a feature
Let’s separate your existing internal software from the old external payroll mngmnt tool you use. With APIs, your internal software would simply embed payroll as a feature
14/ Gig Economy
Multiple streams of income are the new normal. In order to better understand how users earn through these multiple income streams (and more importantly, how they can optimize those earnings), startups could/can provide a full financial picture using payroll data
Multiple streams of income are the new normal. In order to better understand how users earn through these multiple income streams (and more importantly, how they can optimize those earnings), startups could/can provide a full financial picture using payroll data
More here 
https://parram.substack.com/p/its-payday
https://parram.substack.com/p/its-payday
