By Brandi Britton, Global Executive Director, Contract Finance and Accounting, Robert Half, and Steve Saah, Executive Director of Finance and Accounting Permanent Placement, Robert Half
Many payroll professionals understandably have mixed views about a new “coworker” already making a significant impact in their department: artificial intelligence (AI). On the one hand, they see how AI can be a powerhouse player on their team, helping to automate and streamline time-consuming and tedious work like data entry, calculations and record-keeping. But the fact that AI is so adept at handling these and other tasks has payroll pros wondering what increased reliance on the technology might mean for their payroll career path.
First, there is no question that AI is changing payroll jobs — and transforming finance and accounting organizations, too. But many professionals see AI-powered tools as a welcome presence in their everyday work life. In a recent Robert Half survey, 38% of finance and accounting professionals said they believe generative AI, which includes tools like ChatGPT, will have a positive impact on their career. Only 12% said they worry that the technology could make their skills obsolete.
The general consensus of the finance and accounting workers we surveyed is that AI can create significant benefits in the workplace. They cited automating routine tasks and increasing overall efficiency and productivity as top among them, according to our findings. As for the positive impacts that AI can have on the payroll department, specifically, consider that the technology can help to:
Improve accuracy
AI algorithms are capable of performing complex calculations with high precision, reducing the chances of errors in payroll processing. This is particularly important in tasks like tax calculations and compliance, where accuracy is critical. The obvious upside for payroll professionals is that fewer errors means less risk of rework, and more time to focus on strategic, value-adding work. (More on that point later.)
Enhance compliance
AI makes it easier for payroll teams to ensure their processes comply with regulations and tax laws, which are always evolving. The technology can be used to monitor and update payroll rules automatically, which helps to minimize costly compliance missteps.
Improve fraud detection
AI can help payroll departments to identify irregularities and potential fraud in payroll transactions by analyzing patterns and anomalies in data. Also, many businesses now look to their payroll teams to use AI-driven predictive analytics to analyze historical payroll data and project future trends.
Reduce administrative burdens
Self-service portals powered by AI allow workers to access their payroll information, request time off and make changes to their personal details. And intelligent chatbots and virtual assistants can answer employee queries related to payroll, reducing the need for human intervention and improving employee satisfaction. In both cases, the administrative burden on payroll staff is reduced.
These are just some examples of how AI is bringing positive change to payroll departments — and payroll jobs. For those payroll professionals worried that AI could replace them, consider this observation that Trisha Plovie, Robert Half’s senior vice president, Future of Work, made in a blog post on generative AI:
“Historically, worker displacement resulting from new technologies has been offset by the creation of new jobs and occupations fueled by this same innovation. And because most jobs and industries are only partially exposed to AI, they’re more likely to be complemented, rather than substituted, by it.”
It’s true that payroll professionals need to adapt to a world where AI is a teammate, working rapidly and continuously on any number of tasks. But they also have a profound opportunity to learn future-forward skills to help them evolve their roles and perhaps take their payroll career in a new direction.
With that in mind, here are some steps that payroll pros can take to work effectively with AI:
Get a handle on AI basics
Work to build a fundamental understanding of AI concepts, terminology and related technologies, including machine learning and natural language processing. To jump-start your learning, you can look to online resources like Coursera, and technology companies such as Microsoft* that are helping to bring AI into the workplace and equip workers with AI skills.
You don’t have to become an expert on this subject matter (unless you want to). But as the saying goes, knowledge is power. As you grow your understanding of AI, it will become clearer how you may consider using the technology to complement your everyday work, and even find ways to innovate with the tools available to you.
Stay informed
AI is a rapidly evolving field. Strive to stay up to date with the latest developments in AI that could have an impact on how your payroll department operates and the nature of your job responsibilities.
Attending relevant conferences, workshops and webinars and reading industry publications can all help you to stay informed. And don’t overlook the AI experts in your midst: Consider tapping into the knowledge of IT professionals and data scientists at your company, too.
Develop or deepen data analytics skills — and focus on more strategic work
Payroll departments are data-driven by nature, and most leading payroll organizations today use data analytics to track everything from first-time approvals to how long it takes to complete the payroll cycle from end to end. However, advanced analytics with AI opens the door to working with data in ways that extend far beyond the performance of the payroll organization. And bringing together insights from payroll data with other workforce analytics can help businesses make more informed decisions related to talent management, performance, human resources strategies and more.
Payroll professionals who want to adapt their payroll careers for the AI era will want to consider pursuing certifications or courses related to AI and data analysis. Strategic work should also become more of a focus. Earlier in this post, we mentioned that the automation of routine tasks with AI can free payroll professionals to focus on value-adding activities. Here are some examples of that type of work:
- Examining compensation data to evaluate pay equity, competitive salary structures and cost-effectiveness in compensation strategies
- Delving into data to help the business better understand what combinations of pay, benefits and perks help to reduce talent attrition and recruitment
- Forecasting labor and training costs to enhance workforce planning and budgeting
- Innovating self-service systems for employees, giving them more control over their payroll information and creating a sense of ownership over their financial details
Continue to enhance your soft skills
Evolving your technical skills as a payroll professional is a must in a world with AI, but growing your soft skills remains essential, too. In fact, this is one area where payroll specialists stand apart from their AI counterparts. Plovie emphasized the following in her aforementioned post:
“I’m confident there are human capabilities AI will never replicate. Humans bring the art to problem-solving and communication. And AI can’t perform outside of its programming. That will never change. Which means the soft skills we value now will only grow in importance.”
So, continue to enhance your communication, problem-solving and customer service skills while you adapt to AI and the new ways of working it enables. By developing the necessary skill sets and knowledge to work with the transformative technologies changing payroll jobs, you can enhance your role as a payroll professional, make more data-driven decisions, and contribute to the overall success of your organization in ways that weren’t easy, or even possible, before.
Looking for payroll jobs? See our available positions.
Follow Brandi Britton on LinkedIn.
Follow Steve Saah on LinkedIn.
* Robert Half and global consulting firm Protiviti, a Robert Half subsidiary, are members of the Microsoft AI Cloud Partner Program.
