The payroll paradox: 2026-27 payroll research report

Payroll is embracing AI. So why is so much work still manual?

Discover what's driving transformation in payroll

Payroll is moving towards automation, real-time insight and AI-enabled decision-making. But behind that innovation, many teams are still relying on spreadsheets and manual input.

Our latest research, based on insights from 250 payroll managers and senior leaders across the UK and Republic of Ireland, reveals the operational reality behind payroll transformation and what you need to do next to take things further.

Why it matters

Payroll has to be about more than getting people paid. But to unlock its full potential, organisations must invest in the right technology and support their teams with upskilling opportunities.

Professional reviewing documents and working on a laptop in a modern office

5 hours a week are being lost to operational challenges

74% of payroll professionals say they need new skills

87% admit to payroll mistakes which left employees unpaid

What you’ll learn

The biggest operational challenges facing payroll teams
How AI and automation are already being used
Why manual processes remain widespread despite technology investment
The impact payroll mistakes can have on employees and organisations
The skills payroll professionals believe they need next
Where organisations need to invest to build a more resilient payroll function
How payroll can move from operational administration towards greater strategic value