Five things we learned from PayFest '25

PayFest delivered frank discussions about the skills gap, technology adoption hurdles, and payroll's expanding role. The research unveiled during the event painted a clear picture: 88% of payroll professionals now recognise they need new skills to keep pace with innovation, which is almost double last year’s amount.

Here are five key insights that emerged from PayFest that could reshape how you approach to a career in payroll, whether you're a payroll professional or leading a team. 

1. Soft skills are becoming as crucial as technical expertise

Research from PayFest revealed an important trend: while technical skills matter, soft skills are increasingly vital for payroll professionals. Problem-solving topped the list, followed by communication and analytical thinking.

This shift makes sense considering 89% of companies still make payroll mistakes annually. Spotting data patterns and anticipating issues require more than technical expertise, as does communicating clearly to stakeholders.

Payroll professionals are now analysts, communicators and strategic advisors. The best professionals translate complex payroll data into actionable insights while maintaining the human touch employees expect.

PayFest speakers encouraged professionals to be curious and bold. Don’t just follow processes, question them and think beyond traditional boundaries. 

2. Payroll has a role central to employee financial wellbeing

PayFest revealed how critical payroll accuracy is to employee retention and wellbeing. When paid incorrectly, employees may be left unable to access essential resources and suffer from financial stress – and one in four would look to leave the company.

In ‘The future is payroll’, the research launched during PayFest, 86% of payroll professionals acknowledged they have a role to play in employee financial wellbeing. This requires payroll professionals to go beyond compliance and accuracy, offering proactive support and innovative solutions for financial health.

The takeaway is clear: accurate, timely and transparent is a necessity for facilitating a strong workforce culture with engaged and satisfied employees. Payroll teams taking on this broader role become strategic partners, not just back-office functions. 

3. AI and automation offer solutions, but implementation requires strategy 

The technology discussions at PayFest were refreshingly realistic. Importantly, while 88% of organisations already use AI in payroll, the focus was on eliminating tedious tasks, not replacing humans.

Admin-heavy processes take at least one day a week for most payroll teams. AI and automation can save this time, letting professionals focus on analysis, problem-solving and work that adds real value.

Speakers at PayFest cautioned against rushing into technology adoption without a solid foundation, though. Their advice: secure and compliant payroll systems must come first, as AI works best with clean, structured data.  

The most compelling examples showed AI detecting anomalies, automating calculations, and enabling proactive payroll management. These tools don't replace jobs, they stop your team getting bogged down in admin heavy processes. 

4. Change management is the biggest implementation challenge

Despite the benefits of new technologies, PayFest highlighted that change remains a major challenge. Stuart Price, Head of Product at MHR said, "no one likes change," but "change is inevitable." This explains why 82% of companies reported more change than ever this year, yet many struggle to implement it effectively.

PayFest’s advice focused on starting small and clearly communicating benefits. Instead of overhauling systems, successful organisations use pilot projects that show value and reduce stress for employees.

The human element is key. Employees value interaction and personal connections, not just data. Technology should improve human connections, not replace them. Payroll teams that communicate well while adopting technology see better results.

Real-world examples from PayFest showed the importance of solving specific problems rather than adopting technology for its own sake. The best implementations started by addressing pain points and choosing the right tools. 

5. Career advancement requires embracing broader responsibilities

The career advice sessions at PayFest offered an optimistic outlook for payroll professionals willing to grow their skill sets. Traditional payroll boundaries are dissolving, opening doors for those who approach business challenges strategically.

The key takeaway: step up if you're passionate about supporting people and solving problems. Successful payroll professionals think beyond routine tasks, tackling challenges with curiosity and creativity.

While staying current with legislative changes and compliance is crucial, speakers stressed that technical knowledge alone isn’t enough. Advancing in payroll requires combining compliance expertise with data analysis, communication skills, and strategic thinking.

Research backs this up: 88% of payroll teams now handle data trends, analysis and forecasting. This expanded role calls for professionals who can connect payroll expertise with broader business strategies.

Preparing for payroll's future

PayFest showed how the payroll profession is rapidly evolving with new technology and growing business demands. The professionals who succeed will embrace change, building technical and soft skills to position themselves as strategic contributors to employee wellbeing and business success.

The future isn’t about choosing between human expertise and technology. It’s about combining both. As AI handles routine tasks, payroll professionals can focus on analysis, problem-solving and building the human connections that cannot be replaced with technology.

Start small, tackle real issues and keep learning. The future of payroll belongs to those who go beyond traditional boundaries and challenge the status quo.

The gates to PayFest ’25 have stayed open, so you can catch up on every session.