Our reporter Suo Hanxue reports from Beijing
How to deal with HR (human resources) used to be a "science" that professionals have been studying intensively, but now, the HR department will face challenges from AI.
According to the report "Deconstructing the Challenges and Future of Payroll Management for Foreign Enterprises in China" sponsored by ADP, a well-known human resources company, most foreign-funded enterprises in China have no plans to increase the number of HR department employees in the future, and nearly 40% of enterprises plan to increase investment in AI and digital intelligence technology to improve management efficiency, reduce human error, and better adapt to the rapidly changing market environment.
"Powered by AI and technology, HR systems can automatically respond to employee inquiries about payroll, benefits, attendance information, or labor laws. Ma Li, general manager of ADP North Asia, introduced to the reporter of China Business News.
Higher satisfaction with the use of AI
AI can do a lot more than knowing your compensation better than you do. "Automate job descriptions, recruitment processes, and advise HR on the performance appraisal process based on HR data and information. Ma Li introduced to the reporter of "China Business Daily".
It has become a consensus in the industry that AI replaces most of the work content of the HR department. According to data, "61% of HR are already using AI-related technologies to assist in daily work. As the entrance for enterprises to attract talents, the recruitment process is also one of the most mature scenarios for AI to land in HR. ”
In the field of human resources, a number of AI application products have been born. It is understood that 58.com's AI recruitment superman can generate recruitment notices and interview questions, Yonyou's AI products can conduct intelligent Q&A, resume evaluation, and video interviews, and Zhipin has launched an intelligent modification and resume writing applet.
AI has been deeply applied to multiple HR scenarios.
According to the report, "Deconstructing the Challenges and Future of Payroll Management for Foreign Companies in China", the compensation of foreign companies in China is relatively complex, so the in-depth application of AI technology is more needed.
In this special study, 226 valid samples were collected through a questionnaire survey, and the respondents were department managers or higher-level professionals who are deeply involved in the compensation work of foreign companies in China, and the foreign companies in China participated in the survey spanned at least 15 industry sectors, of which 91% of the companies were wholly foreign-owned, 80% of the companies had entered the Chinese market for more than 10 years, and 49% of the companies had more than 10,000 employees worldwide.
"During the interview, we learned about the current difficulties faced by foreign companies in China. "Controlling labor costs is becoming more and more important for foreign companies, so striking a balance between employee benefits and cost control is a difficult challenge." ”
This forces the HR department to have more management skills and capabilities. Another pressure is that foreign companies do not plan to expand the headcount of their HR departments.
According to the study, "Nearly six out of ten (62%) of foreign companies in China believe that their investment in payroll has met their payroll needs, and they expect to maintain the current level of investment in payroll teams and payroll skills in China in the next 1-3 years." ”
In the current business environment, the payroll strategy of foreign companies in China is gradually shifting to the construction of more efficient and systematic management processes and tools.
According to the survey, about 39% of companies are focusing on building an efficient payroll process, while 37% are focused on building excellent payroll management systems and tools.
According to the report, 76% of respondents believe that increasing efficiency is the most significant impact that digital intelligence technology may bring to the field of payroll. By automating the data processing and payroll calculation process, the work efficiency can be significantly improved and the time consumption caused by manual operations can be reduced.
Second, 62% of respondents believe that improving accuracy is also an important contribution of these technologies. The use of AI algorithm optimization can effectively reduce human error and ensure the accuracy of salary calculation. Finally, 59% of respondents believe that improving the employee experience is another positive impact that cannot be ignored. Digital intelligence tools improve employee satisfaction while improving the efficiency and accuracy of payroll management.
Concerns about leakage of personal information
At present, HR solutions using AI technology have been launched in the United States, and in the context of the rapid development of digitalization and AI technology, payroll management is at a critical juncture of change.
However, according to the survey, 76% of enterprises said that they have not embed AI technology into their payroll management systems (tools), and believe that the current application of AI technology in payroll management is not mature enough, or they are worried about the risk of privacy leakage.
DLA Piper's 2024 annual report notes that in less than two years after the implementation of the General Data Protection Regulation (GDPR), the EU and its three member states have recorded more than 160,000 cases of data breaches, and since 28 January 2023, European regulators have issued a total of €1.78 billion in GDPR fines, an increase of more than 14% compared to the total between 28 January 2022 and 28 January 2023.
In China, the PIPL marks a new level of national emphasis on data compliance and personal information protection. The law clarifies the definition of personal information and stipulates the principles of personal information processing, including the principles of legality, legitimacy and necessity, as well as the rules and restrictions on the processing of personal information. It sets strict conditions and requirements for the collection, storage, use, processing, transmission, provision, and disclosure of personal information, to ensure that the rights and interests of personal information subjects are effectively protected.
However, it is undeniable that the development of digital intelligence in payroll management is an important trend in the field of enterprise management today. Technology adopters who successfully mastered AI skills to adapt to changes in the technology-driven work environment saw an average revenue growth rate 15% higher than the overall average. At the same time, companies that value AI technology create more economic value, and their revenues grow 36% faster than other types of organizations.
Ma Li introduced to reporters that ADP's own solution software can help HR improve work efficiency while having the ability to make decision-making suggestions based on data insights, and promote close and seamless workflow and communication between managers, managers and employees through the anthropomorphic dialogue function.
Looking ahead to the role of AI technology in the future development of payroll management, about 54% of foreign companies in China believe that digital intelligence technology will play a role in optimizing and simplifying payroll management systems (tools), although it is more of a supporting role, indicating that most companies see the potential of technology to improve efficiency, reduce errors and improve employee experience.
At the same time, 23% of enterprises believe that digital intelligence technology will become the main driving force for the construction of compensation systems (tools).
For future payroll management budget planning, many foreign companies in China have shown clear intention to adjust their budgets. In particular, nearly 40% of companies plan to increase their investment in compensation data analytics (37%) and emerging technologies (36%). At the same time, 16% of companies want to reduce the cost of processing incorrect payroll data, reflecting the need to improve the efficiency and accuracy of payroll management.
These data point to a trend: the payroll management of foreign companies in China is in the trend of digital intelligence, and more and more payroll teams rely on data-driven decision-making processes and digital intelligence tools to improve management efficiency, reduce human error, and better adapt to the rapidly changing market environment.
(Editor: Meng Qingwei Review: Hao Cheng Proofreader: Yan Jingning)