People versus tech: Payroll can’t afford to choose sides

People versus tech: Payroll can’t afford to choose sides

• 53% of payroll leaders say they value technology over personnel
• Over 40% say they are facing significant challenges with their payroll technology
• Nearly two-thirds (63%) consider payroll technology as very important

Over half of organisations now value payroll technology more than human expertise, but they face challenges with both, and recognise the need to strike a balance in order to thrive. That’s according to new research from CloudPay.

The specialist payroll provider’s Tech-Talent Equilibrium Report revealed that 53% of payroll leaders value technology over personnel, compared to 47% who cited the human touch as offering greater value in the function. Respondents also reported that technology has an extreme impact on several payroll KPIs including ensuring payroll timeliness (47%); adhering to compliance requirements (46%), and enabling process automation (41%).

However, the study also suggests that a balance between people and technology needs to be struck to create the most effective process. The analysis showed that payroll, HR and finance leaders are satisfied with the ability of their people to review and improve pay processes (82%), while 80% indicated satisfaction with their teams’ knowledge of country-specific regulations.

Grant Tasker, Senior Director of Global Payroll at CloudPay, comments:

“The debate around people versus technology has been raging for some time, but our analysis shows that a delicate balance must be struck. Yes, technology will drive greater efficiencies, but it is the people who are both adding value and managing this technology in the longer term.”

“While it might be tempting to solely rely on technology to manage payroll, this approach is risky and means that functions end up lacking the strategic and expertise-led capabilities of payroll personnel. Our research and experience show that the solution is to balance equal investment into both technology and people to get the best from both worlds, now and in the future. Simply investing in the likes of AI, automation and APIs on its own won’t cut it.”

-ENDS-

About the Survey
The Tech-Talent Equilibrium in Payroll survey report shares insights from 500 senior decision-makers across payroll, finance, and HR in multinational companies with multi-country payroll operations. The survey was conducted between August 12 and September 3, 2024. To learn more, read the full report here