- Gen AI and emerging technologies automate nearly 70% of payroll processes, slashing costs by up to 71%.
- The Hackett Group's (HCKT, Financial) study reveals a 7% rise in payroll workloads amid a 2% budget cut.
- Payroll software with advanced capabilities such as continuous calculation and anomaly detection is transforming operations.
The Hackett Group, Inc. (HCKT), a leading advisory firm specializing in generative artificial intelligence (Gen AI), has unveiled its latest Digital World Class® Matrix report, shining a spotlight on the payroll software landscape. The report highlights how cutting-edge user experiences, automation, and emerging technologies are redefining global payroll processing.
Amidst increasing operational demands—seen in a 7% uptick in workload paired with a 2% budget cut—payroll departments are increasingly adopting sophisticated software solutions. These tools are augmented with automation and Gen AI capabilities, which significantly ease operational pressures and ensure seamless payroll delivery.
The Hackett Group evaluated 18 top payroll solution providers, assessing their capabilities such as automation, compliance management, and analytics. The study found that, on average, 67% of payroll processes are fully automated, resulting in substantial workload and cost reductions. Sixty percent of users noted decreased costs in payroll processing.
Technologies like continuous calculation, which allows real-time processing, and earned wage access, are gaining traction. Moreover, agentic AI—applications that autonomously execute numerous process steps—is emerging, particularly in compliance management and anomaly detection.
Matthew Merker, Senior Research Director at The Hackett Group, remarked on the rapid innovation in the payroll sector, noting that vendors providing enhanced automation and continuous calculation capabilities are best poised for success in the competitive market.
For payroll professionals, these insights offer strategic guidance for making informed decisions on technology investments, aligned with the crucial metrics that influence payroll outcomes.
