Payroll technology is valued slightly more than human expertise, yet companies face significant challenges with both, according to new research from CloudPay. More than half (53%) of respondents value technology over personnel. A new CloudPay report, The Tech-Talent Equilibrium in Payroll, reveals how the right balance of technology and human talent can position payroll as a strategic business advantage.
“We will continue to see a push and pull between the value businesses place on technology and payroll expertise, as it’s all about finding the right balance between the two,” says Grant Tasker, senior director of global payroll at CloudPay. “Our customers tell us they’re looking for highly skilled talent who have the payroll expertise to pick up where technology leaves off. There is room to welcome both new technology and new talent to maximize efficiency, accuracy, and global compliance.”
Key findings from the report include the following.
- More than 40% of respondents report significant challenges with their payroll technology, despite nearly two-thirds of respondents (63%) who consider payroll technology really important.
- The increasing number of systems that need to be integrated and configured has introduced complexities and challenges for 94% of respondents.
- More than a third (40%) say keeping solutions up to date and connected is a significant hurdle.
- Only 65% are satisfied with data reporting capabilities and only 67% say they were at least somewhat satisfied with their payroll and HCM integration.
- Most (94%) respondents say lack of expertise within their payroll workforce is at least somewhat of a challenge, with more than one-third (38%) reporting it’s a significant challenge.
- Over three-quarters (77%) of respondents working for very large organizations say they are feeling the impacts of the talent gap compared to 67% at small to mid-sized firms.
- The top expectations of payroll talent are compliance knowledge (30%), technology skills and experience (14%), and management and analytical skills (13%).
- Adhering to global compliance demands is a challenge for 40% of respondents.
- Over three-quarters (76%) recognize that payroll technology, when properly configured, can have a significant impact on maintaining compliance.
- Additionally, 78% say payroll personnel have a significant impact on maintaining compliance.