What's Happening?
CloudPay, a payroll and payments solutions provider, reports that traditional pay cycles are becoming obsolete due to advancements in AI, automation, and APIs. The company's Payroll Efficiency Index 2025 indicates a shift towards more flexible, employee-centric payroll models. The study shows an increase in global calendar lengths for payroll cycles, reflecting a move towards on-demand pay models. This trend is driven by technological adoption and changing workforce demands for greater autonomy in pay schedules. The rise of supplemental payroll runs further supports this shift towards flexibility.
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Why It's Important?
The transformation of payroll systems towards more flexible models has significant implications for businesses and employees. It allows organizations to adapt to changing business needs and employee preferences, enhancing recruitment and retention efforts. The integration of AI and automation in payroll processes can improve efficiency and reduce administrative burdens. This shift towards flexible pay cycles is expected to benefit both employers and employees, offering greater adaptability and satisfaction in the workplace.
