Artificial intelligence (AI) is one of the many digital disruptions that is affecting all parts of business and it poses unique opportunities and risks to the local payroll sector, says Lavine Haripersad, vice chairman of the South African Payroll Association (SAPA).

In America over 550 start-ups raised around $5-billion in funding to incorporate AI as a core component of their services in 2016. In the same year, around £1 billion was invested in AI firms in the United Kingdom, with the expectation that the industry will be able to boost the UK’s economy by over £230 billion in the next 12 years.

“With increased app-based capabilities as well as vibrant systems, contemporary staff members are more used to getting personalised, on-demand communication and feedback. Not only is today’s workforce more likely to use self-regulating technologies, but HR teams are getting smaller and they must meet increasing demands from the business,” says Haripersad.

How AI can enhance the HR environment
While the idea of AI in payroll systems is still relatively new, the payroll sector needs to be adaptive towards the benefits that it can pose for companies, employees as well as payroll staff. Haripersad says that when incorporated ethically and in smart ways, AI can vastly improve payroll processes and enhance the working experience for all levels of employees.

AI involves the coordination, handling and processing of large amounts of data. One way that this can be incorporated into payroll systems is by creating AI ‘chatbots’ that can engage with employees.

“If an employee receives their monthly salary slip, for example, and sees that the amount of tax they are paying this month is higher than the amount of tax they paid in a previous month and they want to know why this is the case, an AI ‘chatbot’ can use pre-programmed knowledge and resources to answer an employee’s query effectively. Employee queries regarding payslips are a frequent occurrence in any HR department, so this can greatly alleviate the pressure on HR staff if it is set up correctly,” says Haripersad.

Personalised, digitised guidance
Another way that AI can help is in terms of decision making processes, such as helping employees with their choice of medical aid and retirement fund options. Many large companies offer their staff medical aid options as well as retirement plans based on their risk profiles, need for saving and income levels.

“An AI program can help an employee navigate their options by assessing their personal information and risk profiles. Retirement fund options and the associated levels of savings and investment risks can similarly be programmed in such a way that an employee gets suggestions that truly match their needs,” says Haripersad.

AI offers much more than regurgitating information; the deep learning capabilities brings a deeper level of analysis to the type of processing that can be provided at different levels.

​Haripersad notes that ethics and privacy issues will remain a top priority in any system that incorporates AI. However, we need to remain open to how it can enhance our lives and the lives of employees.

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association

Technology is changing and so is payroll software. While the advancements in payroll systems come with several benefits, these systems could also be exposing employers and their employees to online security threats, says Arlene Leggat, Director at the South African Payroll Association (SAPA).

“In the past, Human Resources and Payroll personnel would be the ones processing everything from timesheets to leave forms. If an employee’s banking details changed, they would need to notify the appropriate Payroll administrator to make sure their salary makes its way to the correct bank account. The next generation of payroll software has made it possible for employees to manage many of these tasks themselves,” says Leggat.

More sensitive information transferred electronically
Tasks that usually required paper trails and approvals, such as travelling allowances and overtime claims, can now be processed online, which leads to an increased amount of personal information being shared via web portals.

“As a Payroll company or a Payroll department, you will have a lot of employee related personal information at your fingertips. The more open and accessible your payroll system is, the more attention you need to be paying to things like firewalls, internet security, cyber threats and general information technology safety,” says Leggat.

Employers legally obliged to protect employees’ privacy
Employers now also have a legal obligation to protect their employees’ information thanks to the POPIA (Protection of Personal Information Act).  This legislation sets conditions for how personal information can lawfully be processed; it has been signed by the President and is now the law.

“Companies are responsible for making sure they are complying with this Act. It’s not only companies in the Financial Services and Healthcare sectors which need to understand their rights and responsibilities regarding personal information processing – any company who uses online payroll processing has to make sure they are protecting their people from harm as well as protecting their right to privacy,” says Leggat.

​International companies have an extra set of privacy concerns to deal with on top of the POPI Act. The GDPR (General Data Protection Regulation) was adopted by the European Parliament in early 2016 and while many of the stipulations are similar, a business will need to comply with both acts if they are transferring personnel and payroll data across borders.

“A company in South Africa may be outsourcing their Payroll function to their European counterpart. In this case, they would need to comply with both the GDPR and POPIA legislation. They are different flavours of data protection laws, but it could be necessary for you to tweak your Payroll processing strategy so that you have a global view and comply with what is common among them,” says Leggat.

Be future-ready
People are already wary of sharing their personal information, cell phone numbers, credit card numbers and addresses online. Having a future ready Payroll software solution can make your business more efficient, but it’s an employer’s responsibility to make sure that their employees are comfortable using it as well.

​“Companies need to take data protection seriously and their staff needs to know that their privacy is a top concern if you want widespread uptake in these systems,” concludes Leggat.

ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za  
 
For more information on SAPA please visit:
Website: http://www.sapayroll.co.za/
Twitter: @SAPayroll
LinkedIn: The South African Payroll Association