For 2025, Companies Stress Payroll Technology and Shortage of Payroll Talent, According to CloudPay Survey

Payroll technology is valued slightly more than human expertise, yet companies face significant challenges with both, according to new research from CloudPay. Fifty-three percent (53%) of respondents value technology over personnel, compared to 47% who cited personnel as having more value. A new CloudPay report, The Tech-Talent Equilibrium in Payroll, reveals how the right balance of technology and human talent can position payroll as a strategic business advantage.

“We will continue to see a push and pull between the value businesses place on technology and payroll expertise – it’s all about finding the right balance between the two,” said Grant Tasker, CloudPay Senior Director, Global Payroll. “Our customers tell us they’re looking for highly skilled talent who have the payroll expertise to pick up where technology leaves off. There is room to welcome both new technology and new talent to maximize efficiency, accuracy, and global compliance.”

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Technology Shortcomings

• More than 40% of respondents report they have significant challenges with their payroll technology, despite nearly two-thirds of respondents (63%) who consider payroll technology very important.
• The increasing number of systems that need to be integrated and configured has introduced new complexities and challenges. 94% say disconnected systems and solutions are a challenge.
• 40% say keeping solutions up to date and connected is a significant hurdle.
• Only 65% are satisfied with data reporting capabilities and only 67% said they were at least somewhat satisfied with their payroll and HCM integration.

Skills Shortage Experienced By Almost All

• 94% of respondents say lack of expertise within their payroll workforce is at least somewhat of a challenge, with more than one-third (38%) reporting it’s a significant challenge.
• 77% of respondents working for very large organizations said they are feeling the effects of the talent gap, compared to 67% at small to mid sized firms.
• The top expectations of payroll talent are compliance knowledge (30%), technology skills and experience (14%), and management and analytical skills are tied at 13% each.

4 in 10 Report Compliance as a Significant Challenge

• 40% say adhering to global compliance demands is a significant challenge.
• 76% recognize that payroll technology, when properly configured, can have a significant impact on maintaining compliance.
• 78% say payroll personnel have a significant impact on maintaining compliance.

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