In case you missed the headline: Is it time to incorporate AI software into your payroll system? The short answer is yes, you should.
Indeed, it feels like AI has long been heralded as the key technology that will revolutionize every aspect of the work world, in all industries, in every department. For HR, however, the revolution has been a bit slow to develop.
At long last, though, Human Resources is set to enter that long-promised era of tech-driven evolution as a much-anticipated tsunami of new tech and tools is about to flood the market – and AI will be floating on the wave.
In particular, AI will help HR departments by automating many time-consuming and repetitive processesOpens a new window that have traditionally been performed manually.
Relevant developments are already transforming myriad HR functions such as staff development, training and retentionOpens a new window , and that very same organizational influence can be brought into payroll operations as well.
New, AI-driven HR tools are assembling and analyzing big data in ways that simply weren’t possible until recently, providing new and exciting solutions to many of the traditional challenges confronted by payroll departments.
And not a moment too soon. Consider a 2014 Deloitte reportOpens a new window that documented the most pressing issues as seen by payroll professionals: One-quarter of respondents to a survey in the report agreed the payroll solutions at their companies were poorly integrated and documented ineffectively. Meanwhile, some 30% of HR professionals said they were still defining and modifying their approach to payroll and workforce management.
The division between payroll and HR
HR departments have struggled because payroll management has generally been siloed from other HR functions. Sure, on paper payroll seems to fit broadly into HR. However, complex and nuanced compliance issues have complicated integration to the point that it’s easier not to take on payroll – hence, its isolation.
Consequently, payroll management historically has been left behind in the development of game-changing technologies. These new, AI-powered tools, though, promise to consolidate and innovate payroll and HR infrastructures, enabling HR teams to spend less time on menial tasks and instead focus on critical, human-oriented HR operations such as onboarding new employees and staff retention, ultimately contributing to the bottom line.
Merging these traditionally disparate HR functions means they can now be managed and delivered through a single interface, decreasing HR staff head counts, and lessening human error across payroll and HR operations.
There are even new services entering the market like IBM Talent & TransformationOpens a new window , which promise to help businesses harmonize AI technology with HR processes.
Interactivity
As any payroll manager knows, a significant portion of the day can be spent answering client queries. Enter machine learning-driven ‘chatbots.’ These robots can be used as a first port of call for customers needing assistance.
Powered by AI, the chatbots are programmed with interactive conversational capabilities, offering useful relevant information and resources that can help clients and pass on the more complicated cases to human counterparts.
The AI can also enhance interactivity by monitoring conversations between customers and HR representatives, identifying patterns that can be used to develop new pre-programmable responses for the future.
Taxes and healthcare
That AI programs can automate tax and healthcare functions for payroll is a big deal. Normally, this aspect of payroll can be complicated, requiring in-depth, sector expertise in order to ensure all information is assigned and classified correctly.
AI can remove the need for an individual – or an entire team – from having to do it themselves. Instead, classifying employees, determining tax bands, working out each employee’s exact pay or healthcare contributions – in fact, anything to do with payroll expenses – can now be automated to a significant extent.
And considering just how complex the tax-and-withholdings environment is becoming, this will result in substantial time and cost-saving.
Compliance
Compliance can be a pain in the neck for payroll, especially considering the ever-changing regulatory environment.
Enter AI, which can trawl the massive amounts of payroll data that must be processed to meet relevant compliance regulations. Moreover, the automated nature of AI removes human error, reducing resources and time required for overall compliance processes and requirements.