TECHNOLOGY
ons: r
sector payroll systems today is AI-driven automated processes. Now, instead of going to HR to ask how much annual leave an employee has remaining, the individual can simply refer to an AI-driven system that can answer their questions. This is causing a huge shift towards AI-powered business systems which can calculate sick pay and annual leave depending on an employee’s work hours, job description and role. This frees up the time of skilled HR and payroll staff to carry out more nuanced tasks, as technology can perform some of the simpler day-to-day activities. However, mistrust of new systems persists in the public sector and overcoming resistance to change is by far the biggest challenge. For example, tackling paper waste by providing online payslips rather than physical ones. Initially, employees may feel confused or unhappy with the change which likely stems from feeling unprepared or unknowledgeable on the new systems. To tackle this, a thorough communication and training plan should be implemented, allowing employees to speak up and raise concerns. This also enables managers to pinpoint staff who may need more support than others through the change. It’s therefore crucial to keep people at the heart of all decisions when implementing a change as far-reaching as introducing a new payroll system, as it affects everyone. HR and payroll professionals then face the task of restructuring themselves,
their teams and how they operate with their customers to fit with new solutions. Managers’ responsibilities are also shifting, with the move towards MSS systems meaning jobs previously carried out by HR, such as entering promotions into the system, are now driven by managers. As a result, they must navigate how they’re going to interact with the new system to ensure increased efficiency. “Payroll is all about people. It affects everyone across all levels of seniority and experience, and at all stages of the employee lifecycle, from new starters right through to movers and leavers” To streamline the transition and address doubts within the workplace, it’s essential to communicate the benefits of the transformation, explaining why the change is happening and how this will benefit employees. Digital payroll systems have extensive audit logging processes which track every transaction and change, so data is stored safely, mitigating the risk of human
error and improving accuracy. This also means the accuracy of data is much higher by enabling the ability to control from the source. It ultimately speeds up the process and boosts organisational efficiency, giving more time back to employees to take on skilled tasks and leaving the mundane tasks to AI or other automations. As with any digital change programme, comprehensive training and support to upskill the team and increase staff understanding is key. A vital part of any transformation is equipping people with essential skills through tailored training to ensure their future success in using new systems. It’s key that people understand their roles and responsibilities, and that the appropriate supporting measures are in place post-implementation, such as training guides to refer to if questions arise. Payroll changes impact every individual in an organisation, so a digital transformation, although absolutely essential, is a huge task to undertake. With technology developing at speed, public and private sector organisations must evolve to keep ahead of the curve and adopt new processes and technologies to improve the payroll industry. By addressing any apprehension towards change through appropriate training, communication and support, businesses can adopt new systems, transition seamlessly and embrace transformation and its benefits as they look to the future. n
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
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