Automation is changing the workplace in more ways than the obvious. People are starting to understand how embracing technology can enhance and smoothen payroll processing functions. And Artificial Intelligence (AI) and Robotic Process Automation (RPA) are a few major technologies that are helping payroll departments manage their time efficiently. AI and RPA are becoming important functionalities of today’s payroll management software.
The Role of AI in Payroll Management Software
Payroll management is an important function for any organization. It typically requires you to work with large sets of data. This means sometimes your work can include manual data entry and long hours of coordination with other aspects of HR management.
In this section, let’s have a look at how AI is turning out to be a life saver for companies struggling at managing their payroll.
- Smart data management
Payroll requires processing huge amounts of data. Without the help of adequate tools, there are chances of errors. AI powered tools help in handling this problem and contributing to smarter data management. With the use of APIs, businesses can now better manage their data, thereby saving resources and time in handling manual tasks. In addition, with the use of such smart tools, you can analyze data over a period, which as a result leads to intuitive report formation.
- Roster management
With the convergence of AI with payroll, managers will be able to automate the rostering development process. AI smart solutions will make it easier for organizations to prepare rosters by linking employee skill levels, attendance records, and past working patterns, among other things to develop cost-optimized rosters.
- Advanced analytics
Payroll data can generate valuable insights that enable businesses to make informed decisions. With advanced analytics, AI tools can help companies be in control of various business processes in advance. They can use the data to revamp their processes in order to make them more efficient and in line with future trends.
- Error prevention
AI tools can greatly reduce the chance of error resulting by bringing into attention any inconsistencies in the data quickly. As payroll requires absolute accuracy, AI is turning out to be beneficial to reduce the impact of human error.
- Streamline communication
With AI powered chatbot, payroll department can provide quick response to queries. The best thing is you won’t have to engage humans as chatbots and train them to converse like humans. As a result, chatbots enhance communication and improve satisfaction levels in the employees.
Further, these bots have become smart enough to handle complex inquiries and direct the employee to the respective human counterpart for a quick resolution of the payroll query.
The Role of RPA in Payroll Management Software
Robotic Process Automation or RPA is a wonderful technology that handles repetitive business processes using software robots to perform repeatable tasks with ease.
Hence, RPA in payroll processing is beneficial as payroll processing tasks are repetitive in nature. Let’s look at some of the top use cases of RPA for payroll management software.
- Changes in payroll record
The bots in RPA can help you keep up with so many changes in payroll data, pouring in both monthly and yearly. The bots can take up medical reimbursement, change bonus, etc. in the payroll structure.
- Attendance management
RPA tools help validate time and attendance and highlight discrepancies, if any. It constantly monitors employee’s attendance in the organization.
- Contract level changes
Using RPA, you can automate contract level changes that take place in the middle of the month or the year. Compensation packages associated with the contract can be pro-rated as per your responsibilities and position within the organization.
- Salary calculation
Salary calculation for employees can be easily done using RPA bots. The bots come with the payroll process automation feature for salary calculation, which is then processed as per the departmental hierarchy.
- Payroll deductions
RPA automates the process of payroll deductions which include travel loans, health policy and more from an employee’s paycheck.
- Payroll processing
RPA in payroll helps in automated verification of data across systems, reimbursement calculations & more. Using RPA bots, you can automate the payroll process that eliminates any chances of reworks or errors.
Wrapping Up
The use case of RPA automation and AI technology is getting prevalent in every industry at a growing pace. Backed by AI and RPA, the chances for a complete change of payroll functions are quite likely.
However, it is important to note here that these use cases improve speed and allow professionals to focus on more strategic activities. Under no circumstance should this be understood as examples to automate end-to-end payroll processing.
Well, this new shift will give you opportunities to look for convenient ways to adapt payroll functions and achieve greater efficiency.