The Hackett Group庐: Payroll Emerges as a Priority for AI-Enabled Operational Transformation
Top payroll solution providers automate nearly
The research comes at a time when payroll organizations are grappling with rising demands. According to The Hackett Group鈥檚 2025 Payroll Key Issues Study, teams face a
The Payroll Software Digital World Class庐 Matrix provides an in-depth guide to the market鈥檚 most impactful payroll technology providers, including how their solutions enhance payroll operations through advanced automation, continuous calculation, anomaly detection and more. The report evaluated 18 providers for their capabilities and value delivered to customers based on vendor briefings and extensive customer interviews across 26 different criteria.
Capability ratings assess a vendor鈥檚 capacity to provide payroll solutions across critical operational areas, including automation, customization, analytics, compliance management, mobile enablement and earned wage access. They also assess core platform functionalities such as user interface quality, platform structure and data integration.
Value realization ratings assess a vendor鈥檚 impact across key metrics for payroll performance, including implementation experience, , workload reduction, automation improvement, accuracy, employee onboarding, cycle time, process control, analytical forecasting, functional integration, overall satisfaction and business value, and pace of innovation.
The findings are clear: payroll organizations engaging with advanced software providers are realizing significant value. End users report that on average
Leading payroll vendors are innovating rapidly to take advantage of the latest technological advances, particularly in AI, to improve payroll processing outcomes. While some applications are still in the nascent stages for payroll, other use cases 鈥� such as conversational chatbots and enhanced employee self-service 鈥� are gaining traction. Top use cases identified include automation improvement, content generation and intelligent collaboration capabilities.
The report also highlights the emergence of agentic AI 鈥� intelligent applications that can carry out multiple steps within a process autonomously. Early use cases are largely centered around compliance management and anomaly detection but are poised to expand even further over the next year. Other payroll software functions that are starting to see greater adoption include continuous calculation 鈥� which provides real-time gross-to-net processing 鈥� and earned wage access 鈥� which provides employees with easy access to their pay outside of traditional pay cycle processes.
鈥淧ayroll is a critical element of operation for any business, and the margins for error are slim,鈥� said Matthew Merker, senior research director for HCM Market Intelligence at The Hackett Group庐. 鈥淧ayroll organizations are constantly seeking new ways to stay ahead as workloads rise and budgets fall. Software providers that enhance automation, while introducing advanced capabilities like continuous calculation, are poised to take the lead in this highly competitive market.鈥�
Using this comprehensive analysis, payroll professionals can make informed purchasing decisions that are aligned with the strategic priorities and critical metrics they seek to impact payroll outcomes.
Payroll Digital World Class庐 assessments are part of The Hackett Group鈥檚 full 82-page report. The Payroll Digital World Class庐 assessments should be read in the context of the entire report. . .
The Hackett Group庐 does not endorse any participant, vendor, product or service depicted in its research. This research should not be considered as advice that a buyer select only those participants based on their ranking or position on the The Hackett Group庐 Digital World Class庐 Matrix. You should not rely upon any material or information within this research as a basis for making any business, legal, financial or any other decisions. Any such reliance shall be solely at buyer鈥檚 risk. The Hackett Group庐 research publications consist of the opinions of its research organization and should not be interpreted as factual statements. To the fullest extent permitted by law, The Hackett Group庐 disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability, suitability or fitness for a particular purpose. The information contained in this research is provided on an 鈥渁s-is鈥� basis with no guarantees of completeness, accuracy, usefulness or timeliness. The Hackett Group庐 assumes no responsibility or liability for damages of any kind arising from any information, data, content, materials, or references within its research, including but not limited to direct, indirect, incidental, consequential, special and punitive damages.
About The Hackett Group庐
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class庐 performance. Using AI XPLR鈩� and ZBrain鈩� 鈥� our ideation through implementation platforms 鈥� our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world鈥檚 leading businesses 鈥� including
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This release contains 鈥渇orward-looking鈥� statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渂elieves,鈥� 鈥渟eeks,鈥� 鈥渆stimates,鈥� or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company鈥檚 actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group庐 to effectively market its digital transformation, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group庐 and its services as well as other risk detailed in The Hackett Group鈥檚 reports filed with the United States Securities and Exchange Commission. The Hackett Group庐 does not undertake any duty to update this release or any forward-looking statements contained herein.
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