How Technology is Changing How We Treat Payroll

This article is for the sole use of Proliant Inc. written by Amanda Carr. Amanda is an author, blogger, and expert on HR and Payroll technologies.

Technology has shaped many industries and practices, and payroll isn't exempt from that. From giving us the joys of excel sheets to more streamlined processes, it made payroll a lot easier. Today, technology has made the process even better — aside from offering solutions in cloud computing and big data analytics, automated solutions are also available thanks to the emergence of AI. Read on to learn more about the wonders technology have brought to payroll.

Cloud Computing

Aside from efficiency, HR Technologist notes that there are two major advantages that cloud computing brings to payroll processes: cost savings and flexibility. The more an organization grows, the more it can expand the use of cloud services, foregoing the need for any expensive hardware purchases or plenty of additional software. Routine software updates along with data that has been backed up are also appealing for any finance or IT function, reducing fear of cyber crimes and loss of data. Additionally, having data in the cloud lets employees access it anywhere, 24/7, which means any remote working employee can easily approve employee requests for time off, approve time cards, and regularize any missed punches.

Big Data

The applications of big data are endless, and payroll processes can benefit from it as well. The data found from payroll can provide a ton of insight into how the organization is doing. Case in point, Jeff Phipps of ADP predicts that big data will become a crucial tool for talent management, taking in data from payroll systems, evaluations, and more, in order to help the business get a more transparent understanding of the workforce. In payroll in particular, if management discovers how much overtime an organization is paying employees, they can determine if it’s more cost-effective to outsource or engage interim staff to assist core teams during workload spikes.

Artificial Intelligence

Another piece of technology that makes use of big data is artificial intelligence. Marcus notes that HR is a data-rich environment where AI is perfect to be put to use, and payroll is just one way to do that. For instance, our article entitled ‘The Benefits of Creating a Memorable Employee Experience’ notes that tools like artificial intelligence and machine learning can also enhance employee experience through self-service access to payroll, training, and performance and feedback tools, among other things. Aside from this, it can also help find in-house talent through an algorithm that can identify leadership qualities among a pool of employees, which can be used to nurture newly hired employees for leadership roles as well.

As technology is changing the way HR departments conduct payroll processes, we should expect that everything will eventually become more streamlined and efficient in the future. However, applying all these technologies will take a lot of time — especially for smaller businesses. In the meantime, there are plenty of ways to improve payroll besides implementing expensive technology. If you want to improve your payroll processes today, consider outsourcing with our online payroll services and tax processes with Proliant and find out the best options for your business.