Future-ready payroll. The human touch in the age of AI

Automation offers huge potential for payroll, with almost every respondent as part of Workday´s SAGP recognizing its value in freeing up time for innovation, improving reporting, reducing errors, and adapting to change faster. The knack is knowing how to harness it effectively.

To what extent do you agree or disagree with the following statements in relation to automating your payroll systems?

96%

Automated payroll systems have/would free up time to focus on innovation and building business activities in my organization

95%

Automated payroll systems have/would provide enhanced reporting and analytics for my organization

96%

Automated payroll systems have/would create more timely and accurate payment processing for my organization

96%

Automated payroll systems have/would help my organization to quickly adapt to changes in structure, employee roles etc.

^Source:^{Workday’s Strategic Ascent of Global Payroll (SAGP)}

Despite this almost universal recognition, 47% of payroll processes are still doing all this work manually. As mentioned earlier, CPCR painted a similar picture, with 51% using spreadsheets and 19% using manual or paper-based methods, suggesting there’s considerable opportunity for improvement.

The Workday research shows companies can save substantial time and resources, reclaiming as much as 96 days per year through increased efficiency. Yet just 34% of CPCR’s payroll-specific respondents planned to make any changes to their payroll operations in the following 12 months.

Looking slightly further into the future, 14% said they planned to integrate payroll and benefits into one app – followed closely by employee analytics (13%) – in the next two years.

Which of the following are you planning to implement in the next 2 years?

^Source:^{Strada’s 2024 Company Payroll Complexity Report (CPCR)}

To what extent has your organization implemented the following automation, AI and ML features for its payroll?

^Source:^{Workday’s Strategic Ascent of Global Payroll (SAGP)}

In a larger sweep of HR, Finance, Operations, IT, and Payroll, 50% of companies have implemented automation, predictive analytics or fraud detection, and only half are prepared to increase spending on payroll automation.

Beyond automation, there’s also a growing demand for advances like AI, ML, and enhanced reporting. However, the lack of integrated systems and internal skills means this technology is still underused.

As companies expand, systems that offer global insights and local relevance are increasingly important. Successful international payroll management requires a thorough understanding of local laws and regulations, and the ability to adapt to them.

The reliance on manual processes and the inertia in including automation in payroll operations highlights the hidden potential. By acting now, companies can get a clear competitive edge.

In any drive towards automation and AI, people’s expertise and experience are also essential. Payroll systems must be versatile, responsive and easy to use, ensuring technology enhances human decision-making rather than replaces it.

We believe payroll should be more than just a process. We make sure your payroll solutions grow with your business by seamlessly blending innovation with people’s expertise.

By harnessing AI and automation, we create systems that complement the human touch, ensuring your payroll stays adaptable, efficient, and perfectly aligned with your company’s evolving needs.

Luca Saracino
Chief Commercial Officer
Strada