TECHNOLOGY
Payroll reimagined: how AI and technology are changing the way we get paid
Brian Sparling ChFCIPPdip, payroll services and compliance principal Europe, Middle East and Africa (EMEA), Dayforce, explains how employers should embrace the latest technology trends to avoid getting left behind
T raditional payroll – with back office staff calculating each employee’s pay and deductions individually, using spreadsheets or accounting software – is largely a thing of the past. Today’s payroll function is now a strategic component of any modern organisation, and one which is leveraged by hiring teams to attract and retain talent. The growing strategic importance of payroll has led to more investment in technology, but it’s also true that improved tech has enhanced the standing of payroll as a discipline. Now the artificial intelligence (AI) revolution is changing organisations from top to bottom and helping to define the future of payroll – and work itself. Technological progress has paved the way for solutions like on demand pay and autonomous payroll, thus redefining the payroll landscape and presenting opportunities and challenges alike for payroll professionals. Solutions like on demand pay (generally referred to as early earned wage access), and autonomous payroll have the potential to make use of AI so that employees can focus on higher-value
the changing business and operational environments, while adapting to new challenges in their departments. This is especially true as payroll professionals continue to take a more strategic role closer to the heart of business operations. These shifts may mean upskilling teams to meet new challenges and ensuring open communication across the business regarding how these changes will impact everyday operations.
regulations, as well as stringent data and privacy requirements. High perceived risk and regulatory burdens mean many businesses rely on outdated resources and systems to deliver payroll services. With advancements in on demand pay, and now through the potential applications stemming from AI, there’s an opportunity to continue to reshape the future of payroll. For instance, by removing the need for manual identification of data anomalies, plus offering administrators the ability to complete a payroll run instantly. Combined with notifying payroll teams of any potential issues in near real time, AI is quickly and noisily revolutionising payroll processing. Autonomous payroll means organisations can save time and resource, while improving agility, to respond to the needs of the business and external environment. Thanks to the capabilities modern technology unlocks, like faster payroll data and more powerful insights, payroll teams can offer a more strategic approach which informs business decisions; for example, by improving workforce composition and optimising operational costs. Adopting smarter solutions which enhance agility and an organisation’s ability to respond to the prevailing socio-economic conditions is a key enabler for this shift. The new way to pay One such solution is on demand pay, which has been gaining traction across the US and
“The growing strategic importance of
payroll has led to more investment in technology, but it’s also true that improved tech has enhanced the standing of payroll as a discipline”
tasks. These advances mean human resource (HR) and payroll teams can
focus on the people who depend on their functions, rather than being bogged down by administrative processes. While these solutions create new opportunities for payroll and HR pros, it’s vital that teams stay at the forefront of
New wave solutions elevating payroll into the future of work Historically, payroll has been manual and complex, thanks in part to ever-changing
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 46
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