Is your payroll leveraging AI enough?
by Maneesh Choudhary | 5 min read
We usually associate AI with streamlined processes, enhanced efficiency, and accuracy. But is there a limit? What about those less-explored capabilities of AI, tapping which could take your payroll operations and compliance a notch higher? Discover here how you could optimize your global payroll management by utilizing those capabilities.
Organizations frequently encounter challenges when consolidating data from multiple sources to track changes in the tax and labor laws that affect payroll computations. These sources may include government channels and multi-lingual public web sources.
Here are some of the capabilities of AI that help the payroll products and the organizations:
Payroll systems have greatly benefitted from AI’s reading abilities. AI does not blindly go through data and present every piece of information associated with a specified keyword like normal search engines. AI reads the data and intelligently determines its relevance to the case. If the information is valuable for your payroll compliance, then only AI collects it. Thereafter, AI classifies the data under different categories as created by you to offer meaningful and actionable content. This not only reduces human dependency but also improves the timeliness of the payroll product team in incorporating the compliance changes.
While crawling through the mountain of data present on the internet, AI also considers those in regional or foreign languages. AI automatically translates those data and offers them to you, provided they would be useful for your payroll. If you are managing a multi-country payroll product like Ramco does, this is a boon for the product team.
AI’s reading, classifying, and translating powers have significantly helped streamline payroll product compliance maintenance and cut down on human interventions. However, that’s not the end of the road! AI could do a lot more to help optimize the payroll operations.
While chatbots only work with pre-built content and give textual conversational replies, organizations can take AI usage to the next level by making it understand the data and computation, and converse around it. AI can rummage through the individual’s inputs and past transactions to offer logical and reasonable explanations to an employee on how their payroll computations were done. For example, Ramco’s Self-Explaining Payslip. Employees could ask as many questions as they want and get relevant answers to their queries in seconds. It provides answers specific to each employee and leaves no room for human-induced errors in the responses. Moreover, the answers are unbiased and accessible 24/7, every day of the year.
Read our blog on Ramco's Self-Explaining Payslip
One of the biggest contributions of AI is anomaly detection. AI could scrabble through the data and highlight the anomaly in minutes. No need for human intervention. Ramco leverages this capability of AI to fuel its Anomaly Engine. The AI/ML-enabled Anomaly Engine identifies variances based on a statistical analysis of historical payroll data and flags any variations in current payroll processing to ensure payroll is error-free.
The best part about AI is it does not stop at detecting errors; it offers valid reasonings. It finds reasons for anomalies by scanning for data changes & inputs. Ramco’s AI-enabled Anomaly Engine categorizes the anomalies under three severities–red, amber, and green–to help you prioritize them. When the errors are within a certain percentage of standard deviation, it validates the data trend and marks them as green, indicating that they are ignorable anomalies. For those in the amber section, AI offers logical reasoning to help you solve them faster. The engine categorizes only those anomalies in red for which it fails to find any valid reasoning, prompting you to review them carefully to avoid errors. Thanks to the engine, hundreds of variances could be reduced to a few true positives needing attention, in a single report.
Ramco’s AI-enabled Anomaly Engine
Thanks to these capabilities of AI, you can enjoy the following payroll benefits:
Shorter Payroll Processing Window: Enabling the payroll administrators to validate the payroll faster means employees can receive their paychecks ahead of time, and payroll teams can meet deadlines more efficiently. We all know how this can boost employee morale and productivity, don’t we?
More Accurate Payment Calculations: Eliminating errors in payroll calculations, such as incorrect deductions, human data-entry errors, or missed payments ensures that employees are paid accurately, improving employee satisfaction and retention.
No Legal Issues: It is daunting to be updated with the labor laws of one country, imagine the plight when the business is spread over many! AI gives you all the necessary updates to ensure your payroll processing is aligned with the respective laws and saves you from any legal troubles.
Transparency: Employees have the right to know how their pay is being calculated. AI not only does the calculations but also offers step-by-step details to the employees as to how their pay rates are determined.
Employee Empowerment: Irrespective of the employee’s position in the hierarchy, AI treats him/her equally and offers answers even in the middle of the night! No longer waiting for HR professionals to respond to tickets/queries. The bonus: AI never goes on causal leave.
It’s no surprise that a recent report by Eightfold AI titled "The Future of Work: Intelligent by Design", shows that AI has already made significant inroads into payroll functions. Out of the 250 HR leaders surveyed, 78% use it for employee records management, 77% for payroll processing, and another 77% for benefits administration.
So, are you ready to join the ranks of the leaders by taking your payroll operations to the next level with AI?
If yes, Ramco Systems can help you get started. A leading provider of cloud-based enterprise software solutions, Ramco Systems offers a cutting-edge payroll management solution that incorporates AI and machine learning (ML). With Ramco's payroll solution, you can say goodbye to the tedious manual work of payroll calculations and compliance requirements. Our advanced technology can handle even the most complex payroll scenarios across multiple countries, giving you peace of mind and saving you precious time. And the best part? We provide implementation services and ongoing support to ensure a seamless and successful transition to our system.
Intrigued? You can always visit our website to know exactly how we can ease your payroll journey!