Professional April 2025

FEATURE TOPIC

How would you advise pay and reward professionals to maximise

How will technology progression change the skills and behaviours we look for in pay and reward professionals? MA: We now have a generation of young professionals entering the workforce who are much more tech-savvy, particularly in social media and AI. A lot of old wisdom about technology is second nature to these generations, so don’t take that for granted and fail to harness it. If there’s a smart, technology-driven way to do something, someone in your team will find it, so listen when possible. TJ: We’re already witnessing a shift in the payroll bureau sector, where professionals are becoming more involved in strategic decision making and technology management. Payroll software ‘product’ expertise is increasingly in demand. Data literacy is another key change. Payroll professionals are now producing forecasting models, leading in-house digital transformation projects and using AI-driven insights to inform decision-making. These responsibilities mark a departure from traditional payroll processing, with many of our payroll team adopting hybrid roles that bridge technology and payroll expertise. AM: For quite a few years now, I’ve been hearing about the potential impact of AI on how we work within payroll, and it feels like we’re starting to see the effects of that shift in using more technology. It seems that in the not-too-distant future, payroll professionals will be focussed on the more complex or value-add processes, such as complicated employee queries, new entity / benefit implementations and ensuring statutory compliance. More of the repetitive ‘core processing’ work may become AI-managed, or at least, the support for basic queries such as ‘when is pay day?’ or ‘what does this element mean?’ may be something AI can manage on our behalf. It looks like, going forward, we’ll need to manage and develop a broader range of skills to ensure we can show the benefits highly skilled payroll professionals can bring to a business, and be engaged with more strategic planning and high-level management. As using AI seems to be the general direction of travel for a lot of businesses, we’ll need to show we can embrace these changes and be proactively and positively engaged with AI, or we may risk being left behind or our input ignored. JM: Data analytics is going to become an increasing priority for pay and reward

using AI to try and improve our spreadsheet- based processes. I also regularly review the market for software partners (roughly every five years), to make the most of new entrants to the market, as they may drive system enhancements across the industry. Finally, I always aim to work with my current software partners (and fellow customers) on suggestions for system enhancements. James Manning: I think the key point is to embrace the technology that enhances and makes what you do more efficient. Currently, that’s things like process automation and digitising legacy manual tasks as much as possible. For some, that may also include AI, although that has obviously become a buzzword and is being applied to a lot of things that we would think of as fairly standard process automation. So, it can be difficult to pin down exactly what’s meant when talking about AI. “If you have problems the solution works for, then great, but adoption for the sake of adoption without having a firm understanding of the benefits it will bring may not be the wisest decision” It may not be the best idea for everyone to immediately adopt every technology. Generative AI, for example, has developed rapidly in the last few years but I feel that some of the hype around it is in the arena of a solution looking for a problem. If you have problems the solution works for, then great, but adoption for the sake of adoption without having a firm understanding of the benefits it will bring may not be the wisest decision. Clare Warrington: Technology is a scary thought, robots taking over the world – we’ve all seen I, Robot, where Will Smith fights off futuristic robots. However, it’s not like that at all. Technology can work to get rid of the mundane tasks, freeing resources for professionals to do the complex work.

technology developments? Mathew Akrigg: Integration is a key

principle of your systems working with each other and getting the most out of them. However, I would say that every business is different, and you can’t always find the perfect solution to your particular use cases. For this reason, I would say that payroll professionals shouldn’t fear looking outside their familiar ecosystem for new solutions. There are a whole host of companies ready to assist you with all sorts of niche problems. They may not perfectly integrate, but if they can save you time to spend on more important work, they may be worth a shot. Tracy Jerram: There’s a natural tendency for users of software applications to stick with what they know best – a familiar and trusted way of working, even if it isn’t the most efficient. Those heavily involved in processing can find themselves caught in a cycle of getting the job done, rather than exploring how technology could make their roles more efficient. However, viewing automation and innovation as unachievable or disruptive can mean missing out on significant efficiency and productivity gains. When implemented carefully, automation allows payroll teams to manage their workloads more effectively, freeing up time to focus on adding value rather than becoming experts in spreadsheet manipulation. Payroll professionals should approach technology strategically from the outset, seeing automation and AI as tools which enhance, rather than replace, human expertise. Cloud-based solutions, for instance, offer the advantage of regular software updates and new functionality. Of course, adopting new technology also requires new skills. This presents exciting opportunities for payroll teams to upskill or to diversify into areas they may not have previously considered. At Cox & Co, our payroll professionals are undertaking data analyst or business analyst apprenticeships, reflecting the evolving nature of the bureau industry and our decision to embrace technology. Andrew McAulay: My view has always been to embrace technology in what we do, and I regularly review processes to ensure they’re as efficient as possible and use any recent improvements in technology. For example, for a few years now, we’ve been

| Professional in Payroll, Pensions and Reward | April 2025 | Issue 109 28

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