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3 benefits of predictive analytics in payroll
Running global payroll for an organisation operating in multiple countries can, at times, become somewhat overwhelming. With various rules and regulations to comply with and huge data sets to handle, many payroll professionals would welcome a helping hand. Today, with advancements in HR and payroll technology, that hand doesn’t have to be human—in fact, embracing these technologies can unlock the power of payroll within an organisation.
With the power of artificial intelligence (AI), the HR and payroll department can utilise predictive analytics in their roles, which can bring significant benefits to this vital business function and open up the possibilities for payroll data within the organisation as a whole. So, what are the three key benefits of technology-powered predictive analytics in payroll?
Using AI and machine learning to analyse global data sets can provide significantly useful insights, analysing trends that would be particularly difficult for humans to spot. For example, with the data in the HR system kept accurate and compliant by AI, predictive analytics will be able to extract detailed insights on measures such as employee churn, attrition and absence.
Alongside this, planning for the future will be made easier by embracing this technology. Not only will this aid with recruitment and talent acquisition, but the data will make it easier to predict future requirements to maximise performance and reduce costs for the business.
2/ Reduced workload
With predictive analytics handling what it does best, rather than replacing the HR and payroll professional, it will take away some of the burden usually associated with the day-to-day tasks of their role. Technology powered predictive analytics can empower the business function in every aspect. While the technology handles the time-consuming admin as well as extracting valuable insights, the human employees can be left to focus on what they do best too – running the complex monthly payroll operations and performing people-centric roles.
3/ Putting payroll into the boardroom
In utilising predictive analytics, the power of payroll can truly be unlocked. However, the benefits of the insights that the technology can seamlessly extract are not limited to the HR and payroll teams alone. Predictive analytics is valuable to the organisation as a whole and, armed with the insights on how to reduce business costs and boost employee performance, payroll can often find themselves a seat at the table in the boardroom (consider removing).
With insights presented clearly on a single dashboard, and easily accessible and digestible for all, the c-suite will be able to utilise this data when forecasting for the future. As we find ourselves in such turbulent times, with organisations battling the IT skills gap as well as the unfolding implications of Brexit, for example, every possible insight is useful to the global operations of an international business.
When it comes to embracing predictive analytics, payroll is no longer simply about making sure employees are paid on time. When elevated by the power of predictive analytics with today’s HR and payroll technology, the function becomes a vital cog in global business operations, central to the efficiency of the entire organisation.
How HR analytics helps you work smarter
Already a key concern since the beginning of COVID-19, operational efficiency stays top of mind. A recent employer survey by SD Worx, showed that over half of European companies (55%) plan efficiency projects in 2021. Understandable, but don’t just concentrate on doing things right. Doing the right things is just as important. And HR analytics could well be the glue between efficiency and effectiveness. Check the opportunities in 3 HR domains.
How payroll reporting can power-up your staff planning
We often talk about how payroll technology can improve the efficiency of the HR and payroll department itself, but what about the efficiency of the organization as a whole? It’s vital that global organizations are run as efficiently as possible – however, this isn’t only the concern of the finance department in today’s data driven business landscape. With potentially easy access to a broad and detailed selection of employee data, the HR and payroll department can ensure that the organization’s staff planning is accurately informed to better control staffing costs and improve efficiency across the business as a whole.
The benefits of big data in HR and payroll
Big data and analytics have now entered numerous industries, including healthcare, financial services and retail. Despite many HR and payroll providers now using big data as part of their services, the industry has predominately been slow on the data uptake, in comparison to adoption within others. HR and payroll is largely an industry that relies on human intuition, rather than data and statistics, however, providers have started to see for themselves benefits of big data and analytics, and thus are beginning to implement these into their services.