Employment Hero, the leading people, payroll and benefits software provider, has released its 2024 The Power of Automated Payroll Report SEA: Singapore. The report examines the impact of AI and automation on payroll professionals’ roles, and the payroll industry revealing that 78% of Singaporean payroll professionals believe that leveraging AI and automation to reduce payroll processing time would be appealing.
The report, which surveyed 1000 payroll professionals across Singapore and Malaysia in February 2024, shows that 71% of payroll professionals in Singapore expect an increase in the use of AI and automation over the next 12 months. This growing trend underscores the industry’s recognition of the benefits of automation to payroll management, particularly in reducing the time needed to complete pay runs, with 86% of providers still requiring 1 to 5 days to complete this task.
“The landscape of payroll management in Singapore is going through a major shift with the increasing adoption of AI and automation. Despite concerns about job displacement, it’s encouraging to see optimism about new possibilities. In our report, 58% of respondents believe AI and automation will enhance their data analysis skills.
“By leveraging historical data and patterns, AI can predict future trends and improve resource planning. This allows payroll professionals to focus on strategic aspects and make more informed decisions. Additionally, 50% of respondents see increased opportunities for professional development as routine tasks are automated. Continuous learning and adaptability are essential as these technologies evolve,” said Kevin Fitzgerald, managing director (Asia) at Employment Hero.
The report also underscores the positive impact of AI and automation on professional development. With 50% of respondents in Singapore believing that these technologies will increase their opportunities for professional growth, there is clear recognition of benefits beyond efficiency gains.
As routine and repetitive tasks are automated, payroll professionals can shift their focus towards value-added activities such as employee engagement, talent management, and strategic workforce planning. This transition supports the development of skills related to interpersonal communication, leadership, and a broader understanding of organisational dynamics.
When it comes to expertise in payroll services and technology, 39% of Singaporean payroll providers trust their software providers the most, while 34% place their trust in their professional network. This indicates a need for stronger relationships and trust-building between software vendors and payroll professionals.
Top 3 Opportunities for Singaporean Payroll Providers in 2024:
- Digital transformation, AI, and automation – 78%
- Enhanced data analysis capabilities – 58%
- Increased opportunities for professional development – 50%
Top 3 Challenges for Singaporean Payroll Providers in 2024:
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Troubleshooting payroll errors – 35%
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Data security and privacy concerns – 28%
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Balancing automation and human oversight – 32%
Despite the positive outlook, payroll providers continue to face significant challenges. The report identifies that 35% of respondents cite troubleshooting payroll errors as their primary concern. Data security and privacy issues also remain a critical concern, with 28% of professionals expressing apprehension about the security of automated systems.
Commenting on the report findings, Chermaine Ng, corporate secretarial & HR Executive at Cantonment Partners, said: “One of the major benefits of fully automated payroll is the reduction of human errors, which can be time-consuming to rectify. Automation allows us to focus on building better client relationships and supporting them in optimising their payroll processes.”
