Skip to content
Running payroll, especially on a global level, can be complex. With budget cuts, hybrid and remote teams, and expanding expectations (like huge data sets and compliance) to deal with, many payroll professionals are looking towards AI to give them a helping hand.
Predictive analytics makes use of AI and machine learning to help HR and payroll teams focus on the things that matter. This is done by compressing data and trends into understandable, actionable chunks of information that inform companies about possible future outcomes. Ultimately, this benefits the organization by taking away extra administrative work that distracts from more valuable strategic activity.
What is predictive analytics and how can it be used for HR and Payroll?
Predictive analytics is all about forecasting what could happen in the future using historical data. Traditionally, this would be done by an analyst, but now AI can be used to collect, interpret and analyze information at the basic level.
While payroll has traditionally been seen as an ‘administrative’ function, the ability to tap into often unused
For example, predictive analytics can be used to predict appropriate future HR or Payroll budgets. Or, the AI could analyze applications vs. hires and present a range of future predictions that could help human resources come up with better job role advertising.
Three advantages of predictive analytics for HR and Payroll
-
Advanced workforce insights
Rather than looking at the data from a top-down perspective and drawing conclusions constrained by the time or resources available, predictive analytics can create a more in-depth snapshot of things like absenteeism, sickness, attrition, and churn, regardless of employee capacity.
Payroll and HR data can then be compared to discover important correlations, for example, employee satisfaction and engagement vs. salary. In doing so payroll and HR professionals can identify future trends or opportunities and shape recruitment or retention strategies accordingly.
-
Increased strategic capability
By passing over some of the day-to-day tasks like data collection and analysis, the additional workforce capacity gained can be used to work on enacting long-term strategies supported by the insights generated by predictive analytics.
If HR and Payroll professionals know they can outsource this kind of data analysis, and count on it remaining relevant, they’ll be better able to predict future requirements and take action that’ll maximize performance and reduce business costs.
-
Proven power
Rather than being seen as an administrative function or a ‘cost center’, Payroll and HR suddenly have the ability to provide highly valuable data and predictions that can be converted into increased productivity, lower costs, or improved employee satisfaction.
By both providing payroll and HR services, and also feeding key insights into decision makers, the power of HR and Payroll becomes very clear, especially during turbulent and ever-changing times from a workforce perspective.
AI and the modern pay experience
Although AI can collect and present data accurately, it still takes an expert to understand and action the findings. Intuition and experience are still required to turn the basics that AI can generate into business results.
With access to this technology, payroll suddenly becomes more than just the department that pays people. The function has the potential to pass on some day-to-day tasks to AI, but this definitely doesn’t mean employee experience can be replaced.
Instead, with the right expertise and insight, HR and Payroll teams can shift some of their attention to becoming the conduit between employee data and organizational strategy, using everything from interviews to employee system usage to build the bigger picture.
The real question is whether your HR and Payroll teams are already thinking about how AI and predictive analytics could help them deliver a more modern pay experience. The only way this can happen is with meaningful integration, the right technology, and data-driven decision-making.
CloudPay can help you maximize the potential of your HR and Payroll departments with our integrated and customized solutions. Get in touch with us to see how we can integrate predictive analytics into all of your HR, Payroll and Finance systems so that rich and full data can be explored and actioned.
