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The balancing act: When HR and payroll automation meets human oversight

February 12, 2026
Sara Maginn Pacella

When implementing anything new, a fine balance between optimistic early adoption and cautious systems of restraints is critical to an initiative’s overall success. Harnessing the power of artificial intelligence (AI) and automation in human capital management (HCM) is exciting; however, human-led oversight is required to ensure successful implementation.

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Embracing automation

Software provider Lumenalta reports: “Companies that incorporate modern technology in 2025 position themselves for stronger operational efficiency, cost reductions and increased profitability. As artificial intelligence, automation and cloud computing continue to shape industries, organizations capable of integrating these tools gain measurable advantages.”

Rebecca Blood, a Chartered Professional in Human Resources, is an HR consultant at Rebecca Blood Consulting and has over a decade of leadership experience. She sat down with HCM Dialogue to share her insights and expertise on implementing payroll and HR automation and her advice for maintaining human balance and oversight.

Blood is enthusiastic about what AI can bring to the industry. She says: “Automation has drastically reduced human error and the time it takes for repetitive or administrative-heavy tasks, such as processing payroll and tracking employee time and absences.” 

She also cautions about the risks associated with becoming overly dependent on technology as we rely on it more for support. “I think the greatest drawback from automation is truly the loss of humanity. Automation can make business, especially HR, feel impersonal.” 

” Automation has drastically reduced human error and the time it takes for repetitive or administrative-heavy tasks, such as processing payroll and tracking employee time and absences ”

The value of human judgement and automation in HCM processes 

LexisNexis Canada, an organization dedicated to providing legal, corporate and government professionals with comprehensive research and analytics solutions, says: “Human oversight is critical to ensure generative AI benefits legal services in an ethical and responsible manner. With diligent governance, professionals can utilize AI to improve efficiency, insights and justice while proactively managing risks and upholding duties.”

Blood says: “While automation and AI can streamline processes, HR decisions should always be people-focused. Human oversight ensures fairness, empathy and compliance beyond what automation can enforce. Contextual judgement is incredibly important as well, as technology lacks emotional intelligence or an understanding of the nuances of your organization and the people who support it.” 

A proactive way to use AI in payroll and HR is to enable your human resources information system to alert you to anomalies (variations in attendance, payroll amounts or other performance trends) and due dates (such as renewals needed for expiring items in an employee’s file). 

Blood recommends using these features to save time and create awareness and then having a human intervene to address any issues.

Blood also warns about the dangers of AI trained on flawed or inaccurate information and reminds practitioners to always conduct their own due diligence and avoid taking information from AI at face value. 

She says: “When utilizing AI for HR, payroll or other business-related purposes, human oversight is imperative to avoid major missteps, such as sharing confidential information with a platform that does not adhere to Canadian privacy laws.” 

Best practices for human oversight in HR automation 

Generally, Blood recommends that businesses use automation to streamline routine and repetitive tasks and to help make informed decisions. However, she emphasizes the importance of keeping humans as decision-makers and assigning them tasks that have a real impact. 

In addition to human decision-makers, continuous training is also key so that employees know how to use technology thoughtfully and intentionally, including understanding the importance of conducting regular audits to review automation tools for accuracy and impartiality.  

Blood also asserts the importance of transparency, both for employees and for outside parties, about what is automated and why.

She reminds practitioners of emerging compliance regulations, citing the example of Ontario’s Working for Workers Four Act, 2024 that makes changes to the province’s Employment Standards Art

As of January 1, 2026, employers with 25 or more employees must say in any publicly advertised job posting if AI is used to screen, assess or select applicants. 

Blood adds, “Transparency in the hiring process is really a good practice for all organizations to adopt, even if not yet mandated in their region.”

Training for auditing

Part of meaningful AI oversight includes integrating deliberate human oversight surrounding automation tools and human review checkpoints in AI payroll and HR workflows. In the case of HR, Blood recommends setting decision thresholds and/or timelines. She says in the case of best practices for AI and hiring, “If you’re utilizing automated screening, make sure to review it periodically to see if any candidates were screened out that show promise.” 

She also recommends that humans make the final call on approval for any hiring decisions. 

Conclusion

Blood reminds us that automation is a powerful tool, but it should serve as an enhancer for the work we do – not a replacer. She says: “The human element of HR is what allows us to be successful and connect with the people we support. The future of HR lies in collaboration between technology and humanity – where technology provides accuracy and efficiency, and we as humans provide thoughtful judgment, empathy and kindness.” 

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