The benefits of automating payroll

Most payroll professionals agree that automation across the hire-to-pay process has made their job much more manageable, even though manual processes and applications like Microsoft Excel are still very much a part of the payroll process. With the overnight pivot to remote work during the pandemic, the value of an automated payroll process is more apparent than it has ever been. Digital technologies like Robotic Process Automation (RPA), Artificial Intelligence (AI), and digital assistants (DA) are now regularly used to perform highly repetitive, transactional activities, redirecting the focus of payroll staff to more strategic and analytical activities. 

Some believe the value proposition for the payroll professionals is to pay employees accurately and timely every pay cycle; however, the role has evolved beyond just leveraging automation to deliver a paycheck on time. Payroll professionals also support the broader organization by providing insight through reporting and analytics for decision support, continuous employee support through financial wellness programs, and new hire onboarding sessions to help employees understand their paycheck. Additionally, it also includes having a solid understanding of payroll technology and recommending the best-earned wage access solution that meets the needs of all employees.   

Where does the time go?

Deloitte's 2020 Global Payroll Benchmarking Survey points to why it is hard for payroll teams to focus on more strategic areas. More than 25% of respondents indicated that their payroll staff spent most of their time running payroll. The survey revealed that they spent 24% on the reconciliation, audit, and controls process, 20% on data entry, and 14% on answering employee and other inquiries. It's not surprising that payroll professionals have little time to spend on process improvement, reporting, and analytic activities.  

Think of all the data and metrics collected in the payroll system: pay rates, gross wages, tax withholdings, bonuses, benefits and deductions, time, and attendance records. When the data is analyzed and put into perspective, it becomes critical insight for CHROs and CFOs, and this is where payroll staff can add significant value to the organization.  

Here are four ways to automate your payroll activities to free up time to focus on more value-added initiatives for the business

1. Implement a payroll system that integrates with HR. When HCM and payroll are linked, transactions executed by HR like changes to benefits or salary increases or personal employee updates like a change in address or marital status are automatically updated to the payroll system, requiring little interaction from payroll staff. This unification of systems expedites the data entry process and ensures accurate and timely data throughout the hire-to-pay process. 
   
   Additionally, you don't have to keep up with forms, worksheets, and emails containing employee personal data since there is one integrated system of record that is always in sync. What else could you be doing if you were able to run the entire payroll process with one click?
    
2. Enable End-to-End Automation with Robotic Process Automation (RPA). RPA can manage time-consuming and manual activities such as data collection and validation by automatically running tasks and updating the payroll system. With RPA, you can increase your payroll process's accuracy, compliance, speed, and reliability. Additionally, you boost the morale of your employees by setting them free from their repetitive tasks enabling them to be more productive.
    
3. Augment automation with Artificial Intelligence. The reconciliation, audit, and controls processes are routine activities that repeat every payroll cycle and are the perfect set of actions to automate using Artificial Intelligence (AI). Based on regular transactions, AI can identify anomalies in the reconciliation and auditing process and ensure the required controls are in place to identify suspicious or fraudulent activities that might occur in the payroll process. With this intelligent level of automation, payroll staff reduces the focus on every aspect of the process, focusing attention only where needed. 
    
4. Leverage a Digital Assistant. Most employee inquiries around payroll are routine and can be answered relatively quickly with a high level of accuracy when leveraging a digital assistant. A digital assistant ensures employees receive a consistent response for identical questions and removes the burden from the payroll team. A timely, consistent, and accurate response from payroll also contributes to a better overall employee experience. 

The role of the payroll professional has shifted from reactive manual tasks to proactive decision-making. Payroll professionals now have a seat at the table with critical information on how operations impact labor costs. And with payroll playing a more active role in delivering insights, system automation, AI, and RPA become essential tools to allow more time to focus on elevating the business.

Selecting a solution that recognizes the essential role of payroll professionals is vital. Oracle Cloud Payroll is committed to automating the payroll process, ultimately recognizing, and elevating the value role payroll professionals play in any organization! Our solution leverages technologies like RPA, AI, and digital assistants to perform highly repetitive, transactional activities, which enable more time to focus on strategic business initiatives. 

Learn more about Oracle Cloud Payroll at https://www.oracle.com/human-capital-management/payroll/. 

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