The Chartered Institute of Payroll Professionals (CIPP) has released its Future of Payroll Report 2024, exploring the burning issues and trends in the world of payroll, with AI taking centre stage.
As National Payroll Week launches (2-6th September), the leading industry body reveals the results of its survey of 400 payroll professionals, focusing on key topics such as AI and Automation; Future Wellbeing Initiatives, and Payroll Careers.
Respondents showed a noticeable split in understanding the difference between AI and robotic process automation (RPA). 48% said they did understand the difference, but 52% did not. However, a very high proportion (84%) said AI will change the payroll profession – despite only 6% of them using AI at the moment.
The ethics of implementing AI remains a high priority. However, 82% of organisations have no process in place with regard to fair and ethical practices in AI. This raises questions of how AI can be best implemented without safeguards on ethical use of data and protections to prevent breaches of privacy – something payroll departments are highly conscious of.
Despite figures showing payroll professionals believe AI will change the way payroll works, only a third (34%) were worried about the impact of AI on their role – the remaining two-thirds were not worried or indifferent.
Whilst there has been concern across the industry that AI and automation could replace payroll experts, CIPP CEO, Jason Davenport, says that is not what their findings show: “At the CIPP, we don’t feel the payroll profession should be afraid of AI, instead we should be embracing it. Technological advancements will change and enhance the positions available in a payroll department, opening up more time to be strategic within your roles.
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By GlobalData“We are seeing more and more teams shifting their focus towards strategic aspects of the role such as greater collaboration with HR on compliance, data capture and staff engagement. We are also seeing payroll professionals recognised as financial experts and consultants within their organisations, as they let AI do repetitive tasks, freeing them up to analyse data and make financial recommendations to their businesses.
“Embracing AI is therefore something that we encourage, or you’re at risk of being left behind. Now is an exciting time to be in the industry, with new doors opening along with new developments.”
The CIPP is passionate about encouraging people into payroll as a rewarding career, with many opportunities for job progression. In fact, research shows that there are currently more than 60 different career pathways available in payroll.
The Future of Payroll Report reveals the importance of qualifications, with employers recognising that payroll training is needed because of the substantial amount of legislation at play and the complexities around ensuring compliance. Just over half (57%) say that their organisation offers payroll-related qualifications as a benefit.
More than four in ten (43%) recognise these achievements within the organisation, with nearly a third (32%) awarding pay increases once qualifications are gained and 17% giving promotions once qualifications are achieved. When it comes to recruiting staff, nearly half (48%) give preference to candidates with qualifications when recruiting.
Davenport concluded: “Payroll is an industry which influences every business, no matter how big or small, and there are so many career opportunities within the profession. Enticing more individuals into payroll is one of the challenges regularly faced by employers and respondents’ ideas on how to do this were varied. Overarching themes of education and awareness emerged, with those surveyed citing more visibility and information provided in schools, colleges and universities, as well as more apprenticeship opportunities.”
