Sandra Crous | Managing Director | PaySpace | mail me |
In the past several years, Ayanda’s workload has grown significantly. As a payroll administrator, she works more closely with the payments team in the finance office. They often have more questions due to remote and hybrid working and frequently look to her for answers. The company’s legal team is concerned about growing pressure around salary taxation and data privacy regulations.
Amid a tough economic environment, staff loans have reached an all-time high, leaving no room for calculation mistakes or late salaries. These issues demand close attention and accuracy, which becomes harder when Ayanda’s team relies on a largely manual payroll system.
While payroll automation can address these challenges, resistance to its adoption remains strong. Many companies recognise payroll automation’s benefits but hesitate due to concerns about complexity and foundational readiness. Resistance to change is also common. However, automation is the future of payroll and can’t be avoided indefinitely.
Automation is reshaping payroll
Payroll automation has delivered significant results, including a 35% reduction in payroll issues since 2019, according to the Global Payroll Efficiency Index (PEI). It addresses challenges such as legislative changes, first-time approvals, and data input errors.
However, achieving payroll automation is not immediate, and companies face several potential issues, including:
- Reducing payroll staff
- Data silos and fragmentation
- Complex integration
- Steep learning curves
These concerns are valid but often create unnecessary mental barriers that deserve closer scrutiny.
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Reducing payroll staff
Payroll employees worry automation will lead to job losses or reduced control. Payroll is complex and requires human attention. Modernising systems doesn’t eliminate payroll roles; it shifts staff to strategic tasks.
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Data silos and fragmentation
Disorganised data can undermine automation’s accuracy. Reliable, unified data is crucial for automation and digital modernisation. Skilled payroll partners can help clean and organise it.
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Complex integration
Integrating systems during modernisation is more challenging than expected. Choose a technology partner who provides honest insights and a skilled team to map, build, and test integrations.
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Steep learning curves
Changing payroll processes and knowledge is daunting. Resistance often stems from cultural attitudes or poor user consultation. Change, when managed well, delivers superior benefits.
How to start your payroll automation journey
The right payroll technology partner plays a critical role in successful automation. Companies using cloud-native payroll platforms achieve the best outcomes. These platforms offer flexibility, native automation capabilities, and seamless integration.
For instance, legislative updates in traditional payroll systems require months-long change projects initiated by the client. Cloud platforms, however, update laws automatically, saving companies time and effort.
For Ayanda, a payroll platform and experienced provider would solve many challenges. Automation saves time, provides clarity, and empowers employees to engage with payroll information. Every company should consider payroll automation. Partner with a reputable provider and platform for guidance and future-proofing your payroll processes.
