Payroll is the largest controllable operating expense for many organizations, yet hidden inefficiencies and errors can erode 2–5% of total payroll annually through overpayments, misclassification, weak controls, and manual processes. In the “agentic era,” organizations must treat payroll as a strategic function, using automation, digital workflows, and AI to detect leakage, improve compliance, and optimize workforce costs. Transformation can reduce processing costs by 15–20%, cut compliance issues by 70%, and improve employee satisfaction. Agentic AI goes further by continuously monitoring, flagging anomalies, and enabling autonomous decision support—shortening cycle times, delivering 5–12% cost savings, and turning payroll into a driver of efficiency, risk management, and performance.

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