The Importance of Payroll in 2025
Global Survey Reveals Transformation Trends and Challenges

25 March, 2025

London, March 2025 – ADP, a leading global technology company providing human capital management (HCM) solutions, has published a new global payroll survey that has revealed that the role of payroll is evolving rapidly, with businesses increasingly relying on automation, artificial intelligence (AI), and seamless integration with other business systems to drive efficiency and enhance the employee experience.

ADP’s annual report, The Potential of Payroll in 2025, surveyed senior payroll leaders from multinational organisations with over 1,000 employees. The findings underscore the growing strategic importance of payroll beyond its traditional transactional role, highlighting key trends shaping the future of payroll management worldwide.

Key findings from the report:

• Skills Shortages Impacting Payroll Services – While 83% of organisations are expanding their payroll teams, 61% report that skills shortages have affected payroll service delivery. More than half (53%) struggle to source payroll skills externally, leading companies to invest in upskilling and retraining existing employees.
• AI and Automation Transform Payroll Operations – As businesses seek to improve efficiency, 58% are exploring AI-driven payroll solutions, while 50% are focusing on automating manual processes. AI adoption is now the top driver of payroll transformation, with 32% of leaders identifying it as a key priority.
• Integration with Business Systems on the Rise – The push for integrated payroll systems continues to grow, with 47% of companies now connecting payroll with accounting and finance systems, up from 41% last year. Meanwhile, IT teams are spending an average of 25 hours per week managing data flows between payroll and other business systems, underscoring the need for streamlined processes.
• Employee-Centric Payroll Innovations – Organisations are prioritising payroll accuracy, pay transparency, and financial wellness initiatives. Over 55% of businesses plan to introduce digital wallets or pre-payment cards, while 43% are exploring more frequent pay cycles. Additionally, companies are investing in self-service tools, chatbots, and accessible payslips to enhance employee engagement.

The Future of Payroll – Digitalisation and Strategic Evolution

The findings highlight a shift towards a more strategic payroll function, where automation, AI, and system integration drive cost efficiencies and operational improvements. The report suggests that organisations investing in cutting-edge payroll technology and workforce development will gain a competitive edge in talent retention, compliance, and business intelligence.

“As payroll’s role expands, organisations need to embrace innovation to meet evolving expectations,” said Sirsha Haldar, General Manager of UK & Northern Europe. “With AI, automation, and system integration at the forefront, payroll teams have an opportunity to transform business operations and improve employee retention, well-being and overall job satisfaction.”

For more information, access the full Potential of Payroll 2025 report here.

ENDS

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