Most payroll leaders delay projects due to regulatory uncertainty

A recent survey of 251 payroll leaders in the UK and US by Vistra, a leading global provider of essential business services, reveals regulatory uncertainty is slowing global payroll progress, with nearly two-thirds (61%) of payroll leaders delaying or changing projects as a result.

The research highlights how teams are adapting to new technologies, compliance demands and workforce expectations, demonstrating the growing cost of compliance.

Payroll leaders surveyed spend, on average, 16% of their time monitoring regulatory updates, which jumps to over 20% in larger organisations. Nearly half (46%) of respondents cite the cost and difficulty of upgrading technology as a major barrier to keeping pace with new requirements. Meanwhile, 44% say the burden of staying up to date with legislative changes, alongside the challenge of training and resourcing payroll compliance teams, continues to hold them back. This time, ideally invested in strategic value, is instead absorbed by compliance demands, highlighting an urgent need for innovation and adaptive strategies in payroll management.

Despite only a minority of organisations fully integrating payroll with HR, time and finance systems (33%) or achieving complete payroll automation (16%), there is clear momentum toward smarter, data-driven payroll operations. The survey reveals a decisive shift toward AI and automation, with an overwhelming 95% of leaders prepared to implement AI-powered anomaly detection and forecasting.

The digitalisation of payroll is transforming the function of payroll from a purely administrative one, with nearly all respondents (93%) viewing it as a strategic enabler of growth. As businesses continue to expand across borders, 69% of payroll leaders surveyed also plan to expand cross-border hiring in the next 12 months, highlighting payroll’s ongoing strategic importance.

When asked about the key benefits of payroll solutions, organisations most frequently cited improved workforce planning (63%), greater financial visibility and cost control (63%) and enhanced employee engagement (60%). Employee experience stands out most in payroll’s new identity, with 97% of respondents saying payroll experience is a key part of their employee value proposition, and 92% plan to invest in improving it over the next year.

Curtis Holmes, Executive Vice President, Global Payroll, at Vistra, commented: “Payroll has become central to how global businesses grow, adapt, and build trust. It’s no longer a back-office job but one that drives strategic growth and employee satisfaction.

“While payroll teams still face significant challenges, in particular managing varying regulations across different jurisdictions, technology is making payroll less fragmented. Payroll solutions are increasingly freeing up time for HR and finance leaders to focus on strategic planning, employee engagement, and financial control.

“As we look towards 2026, the future of payroll is about intelligence. As global workforces evolve, it’s no longer about paying people correctly, but enabling smarter decisions across the enterprise.”