Beyond Payroll: How Technology is Enabling New Service Models for HR service providers

The good news? HR service providers already have the data, the client relationships, and the legal knowledge to deliver that value. The challenge lies in turning those assets into scalable, tech-enabled services.

The Push Toward Broader Service Offerings

A clear trend is emerging: HR service providers are looking to expand beyond their payroll roots. They’re increasingly active in domains like:

• Employee well-being
• HR advisory
• Service digitization
• Regulatory support beyond compliance

The ambition is there—but the path isn’t always clear. As one leader observed, “We know we sit on valuable data. We could develop new services, even new products. But we’re not activating that potential yet.”

They know they can do much more, but they’re not doing it yet. They need to take action… With the right data, you can start thinking about new products or services.

From Insight to Offering: Where Technology Fits In

Activating data is only the first step. What comes next is creating new value propositions—and this is where technology becomes a real enabler.

Many HR service providers are now:

• Exploring language models and AI to draw insights from client interactions
• Working with structured data to identify patterns and offer tailored advice
• Using digital platforms to streamline service delivery and communication
• Considering productization of services, turning ad-hoc support into scalable solutions

These aren’t abstract ideas. With the right foundations in place—clear data, structured processes, data governance and domain expertise—teams can begin to test and scale new offerings quickly. Think employee onboarding tools, self-service dashboards, or early warning systems for legal changes.

But Innovation Also Brings Complexity

Of course, offering more services brings new operational challenges. The more products and integrations involved, the higher the complexity—and the cost.

As noted in the transcript:

“How do you prevent your tech landscape from spiraling into chaos when you’re dealing with multiple startups, SaaS products, or fragmented tools?”

The key is structured innovation. Not chasing hype, but building out offerings grounded in real client needs, real data, and repeatable processes.

The Human Factor: Skills, Speed, and Scale

Digital transformation isn’t just about tools—it’s about people. And that’s where many HR service providers hit a wall. While internal teams are often rich in HR legal knowledge, they may lack experience in product management, data modeling, or digital delivery.

This makes innovation slower and riskier—unless the right support is in place.

As one voice explained, it’s not about hiring people who are interested in tech, but those who have already done it. People who can move beyond pilot projects and help scale real solutions.

Building for the Future

So what’s the opportunity? By embracing technology and building smart service models, HR service providers can:

• Deliver more value to clients without increasing headcount
• Differentiate themselves in a competitive market
• Transform from a service provider into a strategic partner

And this transformation doesn’t require rebuilding everything from scratch. As highlighted in the conversation:

“Sometimes the best step is doing more with what you already have.”

That means using the data already in place, activating the insights you’re already sitting on, and scaling what’s already working.

Coming Up Next

In the next blog, we’ll zoom in on a critical piece of the puzzle: skills. How do HR service providers bridge the talent gap between legacy operations and digital ambitions? And how can they build or buy the expertise they need—without losing focus on their core mission?

Stay tuned.