Discover what’s shaping payroll—and what to do next
We surveyed over 1,800 senior payroll leaders across 20 countries to find out how payroll is evolving. The findings reveal a payroll landscape adapting under pressure and undergoing a purpose-driven transformation. Payroll leaders are no longer just responding to change, they are driving it. From AI adoption and cybersecurity resilience to compliance challenges and employee satisfaction, payroll is becoming a strategic force at the heart of global organisations. Explore the seven key themes below.
Elevating the employee experience
Payroll's role in shaping the employee experience continues to grow. From pay-on-demand and self-service tools to pay statements for the visually impaired and faster query resolution, leaders are investing in tools and technologies that make payroll more transparent and intuitive.
Elevating the employee experience
Payroll's role in shaping the employee experience continues to grow. From pay-on-demand and self-service tools to pay statements for the visually impaired and faster query resolution, leaders are investing in tools and technologies that make payroll more transparent and intuitive.
The compliance landscape
Keeping up with local regulations across multiple countries remains the most widely cited challenge in global payroll. But the most forward-thinking organisations are turning compliance complexity into a catalyst for investment in better processes, smarter tools, and more flexible teams.
The compliance landscape
Keeping up with local regulations across multiple countries remains the most widely cited challenge in global payroll. But the most forward-thinking organisations are turning compliance complexity into a catalyst for investment in better processes, smarter tools, and more flexible teams.
Global reporting and visibility
Only 12% of payroll leaders currently have full regional and global reporting capability, while 31% have no visibility at all. But leaders are motivated to close that gap and are increasingly investing in reporting and analytics capability.
Global reporting and visibility
Only 12% of payroll leaders currently have full regional and global reporting capability, while 31% have no visibility at all. But leaders are motivated to close that gap and are increasingly investing in reporting and analytics capability.
“Our payroll team has shifted from manual data entry to strategic workforce support. HR and finance now have access to reliable, real-time payroll data for better decision-making. Standardisation has enhanced compliance, reduced costs, and improved operational efficiency across our global workforce. Employees no longer see payroll as a pain point—it simply works.”
- Oluyomi Okunowo, SVP of Total Reward and People Operations at Wella Company
Integration maturity
Modern payroll systems consist of a complex web of systems and platforms, often combining ERP, HRIS, time and attendance, and benefits. Integrated systems unlock real-time benchmarking, stronger workforce analytics, greater pay transparency, and more accurate forecasting of payroll costs. Yet integration remains one of the most significant challenges in global payroll, with 43% citing the complexity of connecting with existing business software as a top barrier. The organisations that invest in integration capabilities now will be best positioned to deliver the kind of global visibility that modern payroll demands.
AI adoption and automation
AI adoption in payroll has moved well beyond the exploratory phase. Around one third of payroll teams are already using AI for core processes — including workflow automation, error detection, data entry, and compliance management — and nearly 40% are exploring or implementing it across these same areas. There’s a clear understanding that these technologies can help teams achieve higher accuracy and efficiency, especially since 35% said that the most common cause of payroll inaccuracies is a lack of automated processes.
Building cyber resilience
Payroll systems hold some of the most sensitive data in any organisation, which makes them a target for attacks. Seventy percent of payroll leaders have reported at least one cybersecurity incident affecting their operations in the past 24 months, up from 57% the previous year. The good news is that organisations are responding with strategic investments: 90% now have some form of contingency plan in place and 47% have dedicated data security resources within their payroll team.
Adapting to the skills shortage
Almost every sector is struggling with a shortage of skilled talent, and payroll is no exception. In fact, nearly seven in ten organisations say their payroll service has been affected by a lack of skilled staff. However, resourceful leaders are using this reality as an opportunity to redesign how payroll operates. Seventy-two percent are actively reviewing how to deliver payroll with fewer people, and 44% of those are turning to AI to make it possible. Payroll leaders are also widening the kinds of skills they’re looking for in their teams.
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Methodology
We surveyed 1,816 senior payroll stakeholders across 20 countries. All respondents work in organisations with more than 1,000 employees and hold senior roles, with more than 80% at SVP, board, or senior organisational decision-maker level. Participants were selected for their direct involvement in, or in-depth knowledge of, payroll operations and strategy within their organisations.
The sample was distributed across major global regions to reflect a diverse range of payroll models, regulatory environments, and organisational structures: 302 respondents from North America (US, Canada); 700 from Europe (UK, France, Germany, Italy, Spain, the Netherlands, Denmark, Finland, Norway, Sweden); 500 from Asia Pacific (Australia, China, Singapore, India, Japan); 114 from South Africa; and 200 from Latin America (Brazil, Chile). Respondents completed survey questions covering skills, automation, AI adoption, cybersecurity, compliance, integration, and global payroll reporting.
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