The world of payroll and HR is evolving at an unprecedented speed, and 2026 is set to bring some of the most significant shifts yet.
From AI systems that can act with initiative, to payroll that updates in real time, these developments are transforming payroll and HR, moving the focus away from admin and towards supporting people in a way that truly benefits the organisation.
According to CRS CEO Desmond Struwig, this rapid evolution will play a major role in how companies manage and connect with their people in the future.
Agentic AI and real-time payroll
The next wave of AI is moving well beyond chatbots and simple automation. We’re now entering an era of agentic AI systems which operate with initiative, carrying out tasks and making decisions autonomously within a defined set of rules and parameters.
In payroll, this allows AI to detect errors and apply fixes automatically, all while remaining fully compliant.
“The impact of this intelligence is significant,” says Struwig, “especially when paired with real-time payroll, which continuously pulls data from systems such as time and attendance, HR and finance to create a live, constantly updated view of pay information across the organisation. This enables organisations to respond to issues as they arise, instead of waiting for monthly payroll cycles.
“As a result, employees gain access to accurate, up-to-the-minute pay details whenever they need them, while managers have instant visibility into payroll data, enabling quicker decision-making and better workforce planning. Payroll teams also face less pressure at month-end, as adjustments and corrections can be applied immediately, improving accuracy and efficiency throughout the organisation.”
AI governance and compliance-as-a-service (CaaS)
As AI takes on more decision-making, governance and compliance are becoming increasingly critical, Struwig continues.
“AI governance frameworks make sure that decisions like salary adjustments or leave approvals are fair, ethical and aligned with regulations. CaaS complements this by continuously monitoring regulatory requirements and automatically updating rules as laws and policies change.
“By combining AI governance with CaaS, organisations can fully harness AI while keeping every process transparent and fully compliant. This not only reduces operational risk but also builds trust with employees and stakeholders, giving businesses the confidence to scale their operations globally without losing control or oversight.”
Personalised compensation and interactive payslips
Today’s employees want more than just their salary – they want transparency and a real understanding of their earnings. This is where interactive payslips and personalised compensation statements come into play.
“They give employees a clear picture of how their pay and benefits are calculated, and even let them explore ‘what-if’ scenarios, like adjusting tax settings or benefits contributions, to see the effect on their take-home pay,” Struwig explains. “This level of transparency not only helps employees feel more informed and empowered, but also builds trust in the organisation, turning payroll into a meaningful touchpoint in the overall employee experience.”
Experience-first HR and the PX model
Modern HR is moving away from rigid job descriptions and traditional hierarchies, focusing instead on the skills and potential that employees bring to the table.
This shift gives organisations the flexibility to deploy talent where it’s needed most, while also creating opportunities for continuous learning and growth.
At the same time, the people experience (PX) model looks at the employee journey as a whole, making sure every interaction contributes to a positive and engaging experience.
“HR systems are evolving from simple record-keeping tools to strategic enablers that support employee growth and improve experiences at every stage of the journey,” says Struwig. “HR platforms are now intuitive and integrated, using data to bring together processes like performance management, learning and payroll into a unified, employee-friendly experience.
“By leveraging these modern, integrated HR systems, companies can turn everyday processes into strategic opportunities that strengthen both employee engagement and organisational performance.”
Looking ahead, Struwig believes that organisations most likely to succeed in 2026 and beyond will see payroll and HR as more than operational functions – they’ll treat them as strategic tools that empower employees and drive sustainable growth.
“By embracing intelligent technologies and people-first strategies early, organisations can create meaningful employee experiences and position payroll and HR at the heart of business resilience and long-term success,” he concludes. “The companies that do this will spark a culture that extends far beyond technology, creating a more forward-thinking workforce that pushes boundaries and delivers stronger performance over the long term.”