How Payroll AI and Machine Learning are Transforming Businesses?

We are living in exciting technology-powered times. Unlike in the past where manual payroll processing was the norm, today payroll processing is taking a new shape. Payroll processing departments are starting to embrace the transformational power of futuristic technologies out there. For example, machine learning and AI are driving forward the ability to create smart applications that improve the way different business departments operate.

Machine learning, AI and payroll processing

There are a number of payroll issues that can hinder smooth payroll processing. If you have not set up a payroll system (are setting one up) you are likely to face some of these challenges:

● You might set up your payroll software solution improperly or even make bad documentation of the whole process

● You might also have a hard time devising a better workforce management strategy.

But if you already have one perfectly running, one of the biggest challenges you may have to contend with is difficulty in tracking employees’ expenses. Today, only a few companies are tracking global and domestic employee expenses. As a result of these imperfections, companies are turning to AI-enabled payroll processing solutions for better solutions.

How can AI and machine learning-based payroll software help transform the way you do business?

● Employee assessment

By analyzing big data, machine learning and AI technology can be used to identify different trends and characteristics across the employee population. The same technology can help payroll managers to narrow down their focus on specific employee(s).

What are some of the benefits companies can draw from such systems? From an HR manager’s perspective, AI screening can help identify skill shortage or productivity issues without running the risk of bias due to human subjectivity. These ones can also point out productivity issues or bottlenecks that payroll managers can work on for improved productivity.

● Promotes better interactivity

If you thought that the payroll management department is isolated from the employees they are serving, you are in for a rude shock. The truth is, payroll processing staff get a lot of queries from customers. Through machine learning capabilities, these managers have devised smart ways of responding to efficiently handle arising customer queries.

This technology offers a platform that promotes interactivity. As such, both the customers’ and the payroll manager’s communication can be tracked. From their pattern of communication, it becomes easier for customer reps to come up with automated responses to the bulk of the inquiries. Besides, these departments can implement chatbots (online) which helps take a significant load away from customer service reps.

● Makes it easier to pick out irregularities

This is very important, especially when it comes to tracking employee hours. As a result, it ensures that employees are adequately compensated in due time. There are times when employees may clock hours they haven’t worked for. As a result, about 27% of companies have to deal with this fraud of clocking hours not worked for, according to The Association of Certified Fraud Examiners.

But, there are also cases where employees genuinely forget to clock hours they have worked for. As a payroll manager, it is your responsibility to you need to make sure that you have you are paying all employees for hours worked. Sometimes, employees might have a hard time clocking their hours properly.

As a result, they will forever keep worrying about whether their hours were recorded properly or not. That is where machine learning based time and attendance software comes in. It helps track every employee activity in the business. It also helps tell whether the employee was present or absent. That way it will help minimize payroll fraud or cases of employees missing some of their payment benefits.

● Makes consolidation with other HR functions easier

Payroll has for a long time been handled separately. There are a lot of reasons why it was kept as such. There were logistical reasons, and other complicated nuances that made integrating payroll and HR department functions difficult. But, thanks to machine learning and AI, these differences have been resolved. As a result of this technological feat, the headcount of HR staff members has reduced drastically. Besides, the burden of processing HR tasks has also reduced leading to minimization of human errors.

● Compliance focus

Both accounting and HR departments have to comply with a number of state and federal government regulations. The worst thing is, some of these regulations are complicated and keep on changing. AI and machine learning offer payroll managers a way of managing the vast amount of data that is involved both in Payroll and HR. As a result, it reduces cases of human error and potential lawsuits that could emanate from such.

Summing it up

Payroll processing is one of the most important aspects of the HR department. Adopting machine learning AI-based payroll software helps ease things up and also increase the efficiency of various operations.

By Fretty Francis, SoftwareSuggest