Global payroll surveys reveal the sector's rising complexity, from compliance to employee expectations, and highlight how modernization and strategic planning are shaping the next era for payroll professionals.
What we learned from Ceridian’s Future of Payroll Survey (Image credit: Pexels)
The pace of change in payroll has never been swifter. Regulatory pressures, digital transformation, and workforce expectations are colliding to demand new strategies from payroll leaders—leaving little room for legacy approaches or complacency.
While employers work to keep up with evolving payroll requirements, professionals are being asked to operate at a strategic level, engaging with challenges that reach far beyond simply delivering paychecks. Today’s article explores the latest industry research and discusses practical steps for keeping payroll operations robust, compliant, and employee-focused.
A recent global payroll survey, conducted by Ceridian, the American Payroll Association, and the Global Payroll Management Institute, underscores a core message: the next era of payroll is already here. Over 880 professionals from 23 countries highlighted mounting challenges, including hybrid work, cross-border compliance, and rapidly evolving employee expectations.
Top concerns revealed by the survey:
These findings are echoed by an Ernst & Young Global Payroll Survey, where 67% of organizations confirmed having a formalized payroll strategy, a notable jump from 61% in 2019. Payroll practitioners are now expected to not only process payments but also offer insights and solutions that directly support broader business objectives.
Payroll’s development trajectory is steeped in legal history, starting with the 16th Amendment in 1913 and the creation of the Social Security Act in 1935. Landmark legislation like the Fair Labor Standards Act of 1938 set the stage for minimum wage, overtime, and recordkeeping measures that remain at the core of processes today.
Ongoing change means payroll teams must not only track federal requirements, but also state, local, and international variations—a daunting feat for any organization with a global footprint. Technology has accelerated this evolution. Cloud adoption is gaining traction, with survey data showing just over half (54%) of payroll professionals leveraging cloud-based systems. Advantages cited include scalability, improved resilience, and heightened security.
Yet, challenges remain: 85% of surveyed organizations identified limitations in their payroll technology—primarily the absence of crucial features (39%), underutilization of their current solutions (37%), and an overreliance on manual processes (34%).
Strategic payroll management has moved from aspiration to necessity. As businesses contend with growing complexity, formalized payroll strategies are proving essential for risk reduction and compliance.
Lisa Weckman, Vice President of Product Management for Dayforce Global Payroll, notes that comprehensive payroll strategies empower teams “to embrace new technologies that offer access to payroll data and the means to measure success.” Such access enables payroll practitioners to overcome obstacles, analyze data, and contribute more meaningfully to organizational health.
On the employee side, expectations have grown significantly. As Price Waterhouse Coopers reports in its employee financial wellness survey, 76% of respondents experiencing financial stress expressed interest in employers that prioritize their financial well-being.
Payroll, once confined to the back office, is becoming an engine for employee engagement and business value. Ceridian’s Future of Payroll survey suggests that “changing business and employee expectations will spur a payroll revolution.”
Key areas of change include:
Recent changes in workforce sentiment, including the rise of "quiet quitting" (with Gallup estimating 50% of the U.S. workforce exhibits this trend) and issues like "quiet firing" highlighted in a LinkedIn poll, emphasize the high stakes of investing in a positive and transparent payroll culture.
Modernizing payroll means more than adopting new software. Surveyed professionals consistently report that existing systems fall short—whether due to lack of features, workflow inefficiencies, or insufficient data analysis tools. 69% of respondents cited widespread problems with payroll data quality or accessibility, notably in the ability to analyze data for labor costs and absenteeism trends.
Cloud technology is highlighted as a critical enabler of future payroll success, offering not only agility and efficiency but also higher security standards. As technology reshapes operations, overcoming barriers—like integrating data systems and automating routine tasks—remains a central task for leadership teams.
Key performance indicators (KPIs) and data analytics are increasingly necessary for monitoring payroll effectiveness and identifying risk. Yet, nearly one-third of surveyed organizations have not implemented any KPIs for payroll. Only 52% measure payroll accuracy, while 37% track on-time delivery, and a scant 33% monitor payroll processing time.
Lisa Weckman points to access to robust data as a lingering challenge preventing more comprehensive KPI adoption. Not measuring payroll outcomes introduces risk, inefficiencies, and missed opportunities for improvement. When payroll teams harness their data, they are positioned to deliver powerful business insights and actively contribute to organizational success.
Trust and satisfaction in payroll extend beyond accurate deposits. The Ceridian "2022 Pulse of Talent" survey found that more than half of employees (55%) cite pay as the most valued aspect of their job—underscoring the power of fair, transparent, and timely pay experiences in both attracting and retaining talent.
Modern benefits, such as on-demand pay and increased transparency, are now seen as prerequisites rather than perks. Quoting Seth Ros at Dayforce Wallet, "Gone are the days when basic health insurance, paid time off, and retirement plans were enough to attract workers.”
Technology’s role is pivotal—app-based tools and digital access points are increasing engagement and allowing for innovative ways to manage everything from benefits to payroll cards.
Demographic transitions, notably the retirement of the Baby Boomer generation (average payroll administrator age in the U.S. is 48, per Zippia data), present real risks for payroll succession. 43% of survey respondents indicated their organizations have no succession planning in place.
The rise of gig and contract-based work brings another layer of complexity. High-profile legal debates—such as changing worker classification rules—are set to affect not only payroll practices, but also cost structures for companies reliant on on-demand labor. For instance, analysts suggest gig businesses like Lyft, Uber, or DoorDash could see operational costs increase dramatically if certain workers are reclassified as employees, as Reuters reports.
As payroll becomes more digital and virtual—a shift accelerated by the COVID-19 pandemic—employers cite training gaps as a looming concern. Just over half (54%) of organizations offer development training for payroll professionals, while nearly a quarter admit to doing nothing to prepare for future needs. Despite this, 78% of payroll workers say they would adapt to changing job requirements if provided with the opportunity.
Proposals around on-demand pay and evolving tax treatments (as described in the U.S. Treasury Department’s General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals) signal additional regulatory adjustments ahead—requiring payroll professionals to stay nimble and informed.
New disruptors and innovations are reshaping payroll, from the mainstreaming of earned wage access and the gig economy to cloud-native systems and advanced analytics.
Organizations that invest in modern technology, nurture succession plans, and empower payroll professionals with continual training will be best positioned to thrive in the changing landscape. Embracing data-driven decision-making and employee-focused initiatives can elevate payroll’s role from operational necessity to strategic business partner.
For detailed survey findings on payroll trends and workforce sentiment, direct readers can consult these resources: Future of Payroll Survey, State of the Global Workplace: 2022 Report, and Gig Worker Rule: Reuters.
Pavel Novák
Pavel is a content creator with a professional background in small business finance who enjoys diving into the details of financial compliance. His goal is to help readers understand not just the 'how,' but the 'why' behind maintaining accurate financial records in a digital world.
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