Power of Automated Payroll 2024 Report [UK] | Employment Hero
Published
Power of Automated Payroll 2024 Report [UK] | Employment Hero
Published
The evolving payroll landscape: How AI and automation are reshaping the UK industry
The world of payroll management is always changing, thanks to new technology and a desire for more efficient processes. As businesses work hard to make their payroll systems better, automation and artificial intelligence (AI) are becoming key players.
These innovations are changing the way accountants and outsourced payroll providers work, setting new standards and reshaping the industry. Yet this shift towards greater automation also raises important questions about the future of the industry, the demand for new products and the changing roles of payroll professionals. So how will AI and automation affect the roles of payroll professionals?
In January 2024 we polled 495 UK payroll professionals and our findings revealed that there is a clear appetite for automation and AI in payroll. However, it also highlighted the importance of continuous education and transparent communication to assist businesses in successfully implementing and leveraging these technologies.
This report explores how these technologies are changing the payroll industry in the UK, looking at how automation is currently being used, the obstacles that payroll providers are dealing with and what lies ahead for the future.
We’ve also brought together expert opinions and insights to give you a comprehensive look at the tools available, whether you’re already using them or thinking about integrating them into your processes. Our aim is to give you the information you need to use technology effectively in navigating the challenges of modern payroll with agility and precision.
In this report, we cover;
- The current landscape;
- Perceptions towards the use of AI and automation in payroll;
- Challenges and concerns;
- Identifying best practices and the future outlook; and more.
Download the report now.
Key findings
of payroll providers are only automating 31-60% of their payroll services
of payroll providers can complete a pay run in less than one day
can complete a pay run in less than 2 hours
of payroll providers still need 1 to 5 days to complete a pay run
of payroll providers want every single payroll task automated
of payroll providers trust software providers when it comes to expertise in payroll services and payroll technology
of payroll providers trust their professional network when it comes to expertise in payroll services and payroll technology
of accountants, bookkeepers and managed payroll professionals spend 81-100% of their time on payroll
Insights from our survey
Our survey respondents provided insights into current perceptions in payroll management, uncovering differences in automation adoption among various stakeholders. Interestingly, top-level executives appear to have embraced lower levels of automation, possibly due to hesitance or lack of awareness. Similarly, smaller businesses tend to have adopted automation less compared to larger enterprises, influenced by factors such as scale and resources. It’s notable that cryptocurrency payments have not yet gained popularity in the payroll sector, with traditional currency expected to remain dominant in transactions.
A majority (82%) of payroll providers expressed a desire to leverage AI and automation in order to expedite payroll processing, with 36% finding this prospect very appealing. They understand the productivity advantages that automation can offer. Additionally, nearly half of respondents believe that AI and automation will enhance their data analysis capabilities. However, our analysis indicates that fostering collaboration between software providers and professional networks is vital for driving innovation and promoting the adoption of automation in the payroll industry. To read more, download the report now.
Methodology and sample profile
The survey was conducted by Cint, a global software leader in digital insights and research technology, with fieldwork in the UK from 16 – 29 January 2024. The total number of eligible respondents was 495. Respondents had to be aged 18+ and be working in one of the following areas:
- Accountancy businesses
- Bookkeeping businesses
- Managed/outsourced payroll services businesses (i.e. selling payroll services to other businesses)
- Professional services providing payroll services (technology/HR consultancy businesses or financial practice & advisory)
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