• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Articles » Process automation: A new trend in payroll administration

Process automation: A new trend in payroll administration

Process automation A new trend in payroll administration

For any organization, the work of the human resources department is critical, as the functions performed align with the welfare of all the employees. 

Human resource practitioners are well-trained to perform tedious and fast-facing tasks relating to daily operations. It involves various areas, including recruitment, policy implementation, and payroll administration.

The recent years have transformed human resource (HR) management to continuously support and prioritize employees’ well-being.

Many businesses explore the adoption of flexible working arrangements and process automation tools. It enhances many areas of operational processes, including payroll administration.

The work of process automation in payroll administration

Payroll administration can be tedious but has repetitive areas because payment allocation is usually administered every month. 

Process automation is a great platform to streamline repetitive tasks that can be integrated into a customizable software application. It allows an administrator to focus on tasks requiring more focus and attention.

Get 3 free quotes 2,300+ BPO SUPPLIERS

The work of technology is highly progressive, making human resource management software capable of efficiently handling payroll administration.

Payroll administration tools usually facilitate management functions, extending to attendance monitoring, bookkeeping, accounting, and performance management.

The work of process automation in payroll administration
The work of process automation in payroll administration

Benefits of having payroll administration software

Aside from process automation, other factors help encourage many businesses to start maximizing the use of payroll administration software.

The following advantages have contributed to many companies delivering better services and acquiring more desirable operational outcomes:

Reduced operational costs 

Acquiring software applications may be pricey but is cost-effective in the long run. Software tools can help companies save up to 50% of operational costs by minimizing workforce requirements. 

With software applications, companies can acquire remote talents who can access the system off-site, decreasing office utility and other resource expenses.

Streamlined systems and process 

Like any other technology-based initiative, payroll administration software focuses on streamlining and making the processes more handy for employees. 

Get the complete toolkit, free

Payroll recording and monitoring can be challenging. However, process automation lets administrators generate reports, update data, and even do calculations more accurately with just a few clicks.

Scalable and customizable features 

Aside from streamlining, software applications today are known because of their ability to promote higher standards of productivity. 

Many software providers take innovations as a form of competitive advantage, resulting in various unique features added to meet the company’s requirements. 

Some features of payroll administration are customized and scaled up to perform other tasks beyond the usual process. Support functions usually backed the software, including:

  • Wage calculation and tax filing
  • Leave, deductions, and benefits monitoring
  • Direct deposit and compliance management 
  • Employee profiling and payroll reports
Streamlined systems and process 
Benefits of having payroll administration software

Skills to look for in a payroll administrator 

While process automation is often acquired through Software-as-a-Service (SaaS) solutions, a well-skilled payroll administrator is needed to guarantee an effective payroll process. 

A seasoned payroll administrator is expected to have the following set of skills: 


As mentioned, the trends in payroll administration require knowledge of operating system software, particularly in HR systems. 

Payroll administrators can easily manage and adjust to the navigation of the software with prior knowledge and experience. 

Payroll administration also involves other office suites to back the software in monitoring and recording employees’ data, like Microsoft Word and Excel. Technological expertise lets payroll admins navigate digital platforms more essentially.

Advanced numerical skills 

Since payroll centers on employees’ salaries, the role requires advanced calculations, and a background in the accounting system is an advantage. 

Accuracy is also necessary in payroll administration due to reporting and encoding amounts and other numerical data, including net pay, tax, and other deductions.

Problem-solving skills 

Standard payments, taxes, and even minimum wages are part of policies implemented by the government. A payroll administrator is responsible for implementing all these provisions and related issuances accordingly. 

There is also a need to promptly address irregularities in deduction management and other miscalculations to avoid employee inconvenience. 

Thus, payroll administration requires problem-solving competencies to effectively and efficiently solve these matters.

Good communication skills

Payroll administrators serve as frontliners in addressing employees’ concerns relative to salaries and payments. 

Acquiring skills that can ensure sound conversation at all levels of the organization is imperative. Answering with clarity and excellent customer service techniques will promote a high-level company-employee relationship.

Advanced numerical skills 
Skills to look for in a payroll administrator 

Choosing a payroll administration provider 

Consider the above-listed skills and identify which areas of your payroll processes need additional help. Choosing a trusted application service provider (ASP) is important, and researching the company is a smart move to see its credibility.

You may base its reliability on reviews of previous clients, compliance with regulations, business permits, and accreditation from various industries.

A third-party provider with a tech-ready environment for payroll administrators will form part of the overall business productivity. The accuracy and avoidance of challenges in payroll administration provide an excellent connection between the organization and its people.

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 3,900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image