Payroll providers across Malaysia are increasingly recognising the transformative potential of AI and automation in payroll processes.
According to Employment Hero’s, 2024 The Power of Automated Payroll Report SEA: Malaysia, a leading HR and payroll solutions provider, 81% of Malaysian payroll professionals find reducing payroll processing time through AI and automation appealing.
This shift is driven by the need to enhance efficiency and significantly cut down the time spent on payroll processing.
The report, which surveyed 1000 payroll professionals across Singapore and Malaysia in February 2024, reveals that 78% of payroll professionals in Malaysia expect an increase in the use of AI and automation over the next 12 months.
This growing trend highlights the industry’s recognition of the efficiency and accuracy that automation brings to payroll management as 80% of payroll providers still need one to five days to complete a pay run.
“Our report underscores the significant opportunities that AI and automation present for payroll providers in Malaysia. Amidst fears of job displacement, it’s heartening to see optimism about new opportunities,” said Kevin Fitzgerald, managing director (Asia) at Employment Hero.
“60% 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 more strategic aspects and make informed decisions. Additionally, 56% of respondents see increased opportunities for professional development as routine tasks are automated. Embracing continuous learning and adaptability is key as these technologies evolve,” he added.
Top 3 opportunities for Malaysian payroll providers in 2024:
- Digital transformation, AI, and automation – 81%
- Enhanced data analysis capabilities – 60%
- Increased opportunities for professional development – 56%
Top 3 challenges for Malaysian payroll providers in 2024:
- Troubleshooting payroll errors – 40%
- Data security and privacy concerns – 33%
- Balancing automation and human oversight – 29%
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.”
