Artificial Intelligence (AI) uses “machine learning” to adapt to the changing needs of its role. It allows any industry to assign predetermined rules to create customized technology to make any job easier. The smarter the artificial intelligence, the better it is at adapting to the demands of its user. However, AI does not necessarily remove the human element. Instead, software such as advanced payroll systems help improve payroll professionals’ skills and elevate their roles.
SET UP A CONSULTATION WITH A PAYROLL EXPERT
Here we look at AI and how it could impact the future of payroll.
Payroll Customization
Payroll systems must be designed to effectively manage how much time HR departments spend on timesheets, making corrections, tracking time, etc. This ensures minimized errors and optimized efficiencies. However, this is only possible when knowledgeable team members help implement the systems to customize automations specific to each organization’s requirements. This is especially important for industries with atypical payrolls including:
- Unionized Labor Forces
- Non-profits
- Financial organizations
- Education
- Healthcare
- Hospitality
- Non-Profit
- Retail
AI will make it easier for organizations to solve inefficiencies encountered in complex payroll situations.
Impacting the Bottom Line
In 2018 a study found the global cloud-based payroll software market was valued at about $7,884 million. The same study estimates by 2026 it will generate about $13,374 million. As more organizations look to AI to take on their payroll problems, employees will adapt to changing roles. Since there’s no denying payroll has a major impact on profitability, AI could be the best way for organizations to see a positive impact on their bottom line.
Reducing Errors
This is probably the most important opportunity AI brings to any organization. Payroll processing varies from organization to organization. However, at the root of it all is a reliance on managing data collected either by manually written up time sheets or some form of automated time clock. The efficiency of any time tracking system must work in hand with industry-related compliance issues.
An advanced payroll solutions such as Paypro offers competitive advantages because it brings seamless, end-to-end workforce management solutions to the table. AI is designed to overcome the challenges of human error. It can consider compliance issues and adapt to changing rules. Data is accurately collected, measured, and applied with a keen eye for errors. Because of its adaptability, Paypro AI also monitors data and offers opportunities to make changes by flagging systemic issues while it works.
Improving HR Professionals’ Skills
While some might view AI as a threat, it brings with it the opportunity to improve skill sets. It doesn’t take over job roles, but instead allows people in those roles to become more skilled and better time managers. While skills are updated to learn how to use AI, time is also freed up to focus on the human side of HR. HR professionals can be retrained to use AI to their advantage, reviewing data and considering opportunities to make improvements in areas that include compliance, finance support, improving business function, considering benefit improvements, supporting individual growth for team members, and more.
Access to Improved Analytics
Payroll offers often overlooked insight that can impact many areas of an organization. Looking at both predictive and prescriptive analytics you can help understand work hours, where people are working more overtime to indicate the need for more staff, improvements to predicting workload increases and decreases to avoid shortages and overages in staffing, and more. You can also use data to understand how your own salary ranges compare to industry standards to help you remain competitive to attract top talent.
AI helps create better budgets by understanding where more payroll is required while reducing staffing in areas to find savings. AI will improve efficiencies by taking a proactive approach to staffing/scheduling so you always know when demand will increase and decrease. AI can become more predictive, providing you with the tools needed to remain responsive to company needs, using historical data to make informed decisions. This ties back to increased skill sets allowing HR professionals to become more analytic in their roles.
Artificial intelligence can be used in it’s most basic form to improve general efficiencies and compliance. However, it can also become more analytical to contribute to next level decision making. Regardless of how it is used, AI is sure to become a fundamental tool for HR professionals looking to improve payroll efficiencies. New insights, elevated HR skill sets, and time savings are just a few glimpses at what the future of payroll will look like thanks to AI.
About The Author
Ingrid is the Content Marketing Manager at Paypro, managing both inbound and outbound marketing initiatives for the company. She has 15+ years’ of extensive marketing communications experience, leveraging brand awareness and strategic partnerships to increase sales revenue for a diverse group of B2B brands.