As HR and payroll systems advance, organisations face both exciting prospects and new obstacles in optimising personnel management.
The recently held SAP Now Africa 2024 event provided great insights into the future of HR and payroll, with discussions focusing on the importance of AI, cloud technologies, and automation in improving operational efficiency and compliance.
SAP Now Africa 2024 is SAP’s premier event on the African continent, bringing together industry leaders, innovators, and visionaries to discuss how technological innovations can create growth and resilience in a fast-changing business environment.
This annual event focuses on assisting enterprises in leveraging SAP’s latest technologies to revolutionise company operations, increase efficiencies, and adapt to the challenges of the digital economy. This year, the event showcased how AI-driven solutions, can be used to boost productivity and streamline activities across several business areas.
In South Africa, HR and payroll management is increasingly moving toward cloud-based, integrated solutions that comply with SARS, UIF, and other regulatory requirements.
Many organisations are implementing digital solutions to manage distant workforces, comply with complex labour requirements, and streamline operations such as medical aid and retirement fund contributions.
BCX Digital Solutions Senior Specialist, Jeanette de la Rey, and BCX HR Operations Executive, Jenna Howell, addressed these themes, delivering critical findings that demonstrate BCX’s dedication to providing comprehensive, forward-thinking HR solutions that meet the needs of modern businesses.
The first step in payroll transformation
Many organisations find the transition to modern payroll systems difficult. It is important to note that while there is no single “right” method to transition to a modern payroll system, taking that first step remains difficult for many organisations.
Due to the complexity of assessing the full scope of change, managing employee resistance, and ensuring data accuracy during migration. The process requires a thorough evaluation of existing HR systems and future needs, while also addressing integration with legacy systems to maintain operational efficiency.
Additionally, businesses must invest in comprehensive training and ongoing support for employees, while carefully managing the financial implications of implementation, training, and maintenance to ensure a smooth transition and long-term value.
Leveraging advanced HR payroll solutions can help simplify the process and overcome key challenges. These solutions ensure seamless integration with existing systems, accurate data migration, and improved operational efficiency. By streamlining payroll operations and maintaining data integrity, businesses can meet evolving HR needs and achieve a smooth transition to a new system.
Trends in HR and payroll technology: The transformative role of AI
The rise of artificial intelligence (AI) is establishing a foothold in the HR industry in a notable way, positioning HR practitioners to improve talent management and optimisation.
SAP has made significant efforts in AI and time management, offering solutions like Joule, an AI copilot that simplifies interactions with SAP systems. Joule, which is expected to integrate with Microsoft Copilot by the end of the year 2024, will handle payroll transactions, timesheets, recruitment screening, and other HR operations, signalling a significant shift in HR practices.
This AI integration will improve operational efficiency, minimise manual processes, and provide real-time help to HR departments. These improvements mark a watershed point in HR technology, as AI-powered solutions enable a more nuanced approach to staff management and development.
Jeanette highlighted that “The biggest investments in HR today are in talent and skills management.” This shift reflects the growing demand for HR systems that can effectively manage talent development, optimize employee performance, and support the future of work.
SuccessFactors, an integral part of the BCX SAP Now package, empowers HR professionals to manage talent strategically, using data to make informed workforce decisions.
This cloud-based human capital management software assists businesses manage their workforce, by offering tools for talent management, payroll, HR analytics, workforce planning, and employee experience management. This empowers businesses to make data-driven decisions and foster a more engaged, performance-driven workforce.
Overcoming challenges and ensuring compliance in payroll system integration
Advancing obsolete payroll systems is one of the key issues that enterprises face. Within the SAP system, enterprises can opt to keep payroll in S/4HANA (pronounced ‘S4Hana’), which may complicate SuccessFactors integration, or migrate to SAP SuccessFactors Employee Central Payroll. The latter solution streamlines processes by moving most activities to a single cloud, decreasing manual involvement, and improving integration with HR services.
“While some organisations remain hesitant to move payroll systems to the cloud, the truth is that cloud environments are often more secure and offer more consistent maintenance than on-premises solutions,” de la Rey expressed. Modern payroll systems rely heavily on cloud technology, which provides scalability, security, and flexibility.
For most organisations, balancing compliance and operational efficiency is critical. SAP payroll solutions prioritise compliance with tax and labour rules, which are automatically updated to meet changing demands. In addition to maintaining compliance, it is imperative to transition to a system that automates payroll operations, increasing accuracy and operational efficiency. Organisations can reduce manual errors while maintaining high levels of data integrity by using features such as automated tax computations, error detection, and payroll processing control.
In the context of cost optimisation, implementing advanced payroll systems may appear expensive at first, but the advantages far surpass the expense. Modern payroll solutions such as those offered by BCX combine several services into a single platform, minimising manual tasks and improving accessibility. This method not only improves operational efficiency, but it also turns payroll technology into a strategic investment, resulting in long-term value and compliance.
Improving payroll with employee self-service portals and systems integration
The launch of Digital HR at BCX has received favourable employee feedback, demonstrating the importance of self-service portals in improving user experience. These portals provide a user-friendly, accessible interface via which employees may efficiently handle their payroll and HR information. By simplifying these processes, employees are empowered to take control of their data, leading to higher satisfaction and increased engagement with HR services.
When an organisation’s platforms are unified, payroll can be integrated with systems such as talent management and time tracking more successfully. BCX’s Digital HR platform embodies this approach, offering seamless access and a streamlined user experience. By unifying systems on a single platform, organizations can expedite processes and improve the overall functionality of their HR operations.
Using technology to address HR and payroll pain points
HR and payroll departments face several common challenges, such as managing overtime, integrating timesheets, and aligning performance with compensation.
These issues can lead to inefficiencies, errors, and dissatisfaction if not properly addressed. For example, managing overtime while ensuring compliance with labour laws requires a delicate balance of automation and policy enforcement.
Similarly, tracking employee hours across multiple locations and time zones introduces complexities in timesheet management. SAP SuccessFactors helps mitigate these challenges by providing tools that optimise compensation balance, enhance performance integration, and streamline payroll processes. BCX’s approach ensures that these systems are tailored to meet the specific needs of each organisation, making HR operations more efficient and effective.
The impact of remote and hybrid work on payroll
The transition to remote and hybrid work arrangements has had a substantial influence on HR and payroll operations. Digital HR was created to enable mobile access, allowing employees to conduct HR responsibilities without physically being in the office. This flexibility has improved the employee experience by allowing remote onboarding and virtual inductions—an innovation driven by the needs of a modern, hybrid workforce.
The future of mobile payroll and self-service tools
Building on the shift to remote and hybrid work environments, payroll’s future lies in mobile-friendly solutions and improved self-service features. As BCX adds AI into these platforms, employees will have easier access to resources such as chatbots, demos, and FAQs. This user-centred strategy will simplify payroll interactions while reducing the requirement for consultant help.
It is a known fact that today’s workforce values salary transparency more than ever before. SAP’s pay model addresses this need by recording wage modifications, incentives, and performance reviews over an employee’s employment, which will then play a crucial role in tomorrow’s mobile payroll efficiency.
Furthermore, data analytics will play a central role in decision-making for HR departments. By using predictive analytics and tools, businesses can gain insights into employee performance, leave liabilities, and compensation trends, ultimately enabling better decision-making and strategic planning.
There is still a considerable desire for innovation in HR and payroll, with line managers under particular pressure to manage transactions. Automated functions are emerging as a solution for reducing manual labour, particularly in areas such as timesheet administration.
BCX’s customer-centric solutions are geared to address these changing needs, with technologies that optimise HR and payroll procedures through automation and advanced analytics.
This article first appeared here: HR, Payroll are evolving: We look at SAP Now Africa insights
