[Global] Payroll transformation helps firms improve agility

New research has revealed that an increasing number of enterprises are automating payroll systems to meet changing business requirements, often outsourcing digital transformation projects and ongoing operations to service providers as they try to do more with less, Silicon reports.

The 2023 ISG Provider Lens Global Payroll Solutions and Services report was published by the global technology research and advisory firm Information Services Group.

It reportedly found that many companies have implemented cloud-based data input, self-service employee portals, mobile apps and other innovations in pursuit of zero-touch payroll systems that can cut costs, speed up results and reduce human error. As macroeconomic challenges impact the future of funding for in-house projects, enterprises are engaging with service providers that spread the cost of innovation across multiple customers.

“Automation has dramatically streamlined payroll processes, whether performed internally or by service providers,” Stacey Cadigan - partner at ISG Human Capital Management and Enterprise Transformation - said. “This lets payroll departments shift into a more strategic role, focused on improving employee engagement and other high-level objectives.”

Managing payroll is a critical part of enterprises’ adaptation to recent and ongoing business disruptions, the report says. The rapid uptake of remote work since the pandemic - together with the growing number of contingent and gig employees who traditionally fell outside the scope of payroll - has increased the complexity of payroll operations and compliance. Leading service providers offer clients the expertise to navigate these changes.

ISG says enterprises are embracing AI and ML tools that are at the core of many providers’ services. They allow for ongoing, automated validation of data inputs, real-time visibility into potential errors and compliance monitoring for greater efficiency. Natural language processing (NLP) powers conversational virtual assistants that can field employee queries around the clock.

While some companies are seeking to consolidate payroll vendors to streamline global reporting, regional service models could better serve local compliance and customisation requirements, the report states. Some enterprises have adopted a hybrid approach in which they partner with two or three providers to find the right balance.

As automation spreads, payroll dashboards and AI algorithms offer the possibility of using data for actionable insights, predictive analytics and scenario modelling, according to ISG. Companies can use these tools for tasks such as adjusting staffing levels and developing ideal compensation structures.

“With some new payroll systems, enterprises can extract a huge amount of value from data they have never used before,” Jan Erik Aase - partner and global leader, ISG Provider Lens Research - said. “Some providers even augment this with third-party data.”

The report also reportedly explores other global payroll trends, including the rise of payroll solutions to help employees assess their financial wellbeing and the growing popularity of on-demand pay with digital wallets.

A customised version of the report is available from Paybix.

Source: Silicon

(Link and quotes via original reporting) 

New research has revealed that an increasing number of enterprises are automating payroll systems to meet changing business requirements, often outsourcing digital transformation projects and ongoing operations to service providers as they try to do more with less, Silicon reports.

The 2023 ISG Provider Lens Global Payroll Solutions and Services report was published by the global technology research and advisory firm Information Services Group.

It reportedly found that many companies have implemented cloud-based data input, self-service employee portals, mobile apps and other innovations in pursuit of zero-touch payroll systems that can cut costs, speed up results and reduce human error. As macroeconomic challenges impact the future of funding for in-house projects, enterprises are engaging with service providers that spread the cost of innovation across multiple customers.

“Automation has dramatically streamlined payroll processes, whether performed internally or by service providers,” Stacey Cadigan - partner at ISG Human Capital Management and Enterprise Transformation - said. “This lets payroll departments shift into a more strategic role, focused on improving employee engagement and other high-level objectives.”

Managing payroll is a critical part of enterprises’ adaptation to recent and ongoing business disruptions, the report says. The rapid uptake of remote work since the pandemic - together with the growing number of contingent and gig employees who traditionally fell outside the scope of payroll - has increased the complexity of payroll operations and compliance. Leading service providers offer clients the expertise to navigate these changes.

ISG says enterprises are embracing AI and ML tools that are at the core of many providers’ services. They allow for ongoing, automated validation of data inputs, real-time visibility into potential errors and compliance monitoring for greater efficiency. Natural language processing (NLP) powers conversational virtual assistants that can field employee queries around the clock.

While some companies are seeking to consolidate payroll vendors to streamline global reporting, regional service models could better serve local compliance and customisation requirements, the report states. Some enterprises have adopted a hybrid approach in which they partner with two or three providers to find the right balance.

As automation spreads, payroll dashboards and AI algorithms offer the possibility of using data for actionable insights, predictive analytics and scenario modelling, according to ISG. Companies can use these tools for tasks such as adjusting staffing levels and developing ideal compensation structures.

“With some new payroll systems, enterprises can extract a huge amount of value from data they have never used before,” Jan Erik Aase - partner and global leader, ISG Provider Lens Research - said. “Some providers even augment this with third-party data.”

The report also reportedly explores other global payroll trends, including the rise of payroll solutions to help employees assess their financial wellbeing and the growing popularity of on-demand pay with digital wallets.

A customised version of the report is available from Paybix.

Source: Silicon

(Link and quotes via original reporting)