REWARD
“In short, the skills gap isn’t just a talent issue – it’s a business risk”
and agile to monitor compliance and even keep an eye on the payroll software they use to ensure legislative updates have been applied correctly.
Closing the divide means securing the future
impact and more complex work. People will always be the power behind technology, so leveraging it within a role is going to be critical. Automation and artificial intelligence (AI) Modern payroll platforms can automate calculations, tax filings and compliance checks, helping to free up professionals to focus on strategic tasks. For example, any first-round ledger reconciliation, or similar, could be automated or perhaps even processed by AI. However, team members will need to be trained to review for completeness and accuracy. Advanced analytics Built-in analytics tools can help payroll teams identify trends, forecast costs and support decision-making. Payroll staff who are trained to use dashboards and reporting tools to generate insights for human resources (HR) and finance leadership are likely to be highly valued. Cybersecurity features Leading payroll systems offer encryption, multi-factor authentication and audit trails to protect sensitive data. All payroll’s sensitive data should be encrypted and shared on a secure platform, especially if it’s leaving your organisation’s environment. Data shouldn’t be shared via email unless absolutely necessary. The future of payroll: strategic and resilient As organisations become more data- driven and employee-centric, payroll can play a pivotal role in shaping workforce strategies. The payroll professional of the future is likely to be a hybrid of analyst, compliance expert and technology champion. This should eventually lead to payroll’s voice being elevated in strategic planning discussions and see payroll leaders included in cross-functional initiatives and transformation projects. To get there, organisations should consider: organisations should consider l recognising payroll as a strategic function l investing in upskilling and reskilling l fostering a culture of innovation and agility.
The impact of the skills gap The consequences of the payroll skills gap are likely to be far-reaching. This shortage can lead to: l increased workloads for existing staff l higher turnover and burnout l greater risk of payroll errors and compliance violations l missed opportunities for strategic workforce planning. In short, the skills gap isn’t just a talent issue – it’s a business risk. Bridging the gap: a multi-pronged approach To assist with the closing of the skills gap, companies should consider adopting a proactive and holistic strategy which includes training, certification, mentorship and technology enablement. Training and development Regular, structured training is important to keep payroll teams up to date. This includes both technical skills and strategic capabilities, which should be scheduled with a regular and pre-planned cadence. On-the-job training via structured learning and ad hoc coaching for ‘career stretch goals’, encourage payroll teams to develop their skills quickly and evenly. Professional certifications Certifications such as IPPE qualifications or the Certified Payroll Professional (CPP) validate expertise and help to signal commitment to the profession. Mentorship and knowledge sharing Pairing junior payroll staff with experienced mentors may accelerate learning and foster a culture of continuous improvement. The role of technology: enabler, not replacement Technology isn’t a substitute for skilled professionals – it’s a force multiplier. When used effectively, it can automate routine tasks, enhance accuracy and provide real- time insights. Using the right technologies in the right way will improve accuracy and compliance, but also free up time for payroll professionals to contribute to higher
The skills gap in payroll is unlikely to be a temporary challenge – it’s a structural issue which will require sustained attention. As a 2024 EY survey makes clear, the profession is evolving rapidly and those who fail to adapt risk falling behind. But there’s good news: the path forward is clear. By investing in training, supporting certifications, embracing technology and fostering a culture of continuous learning, organisations can help to bridge the divide and unlock the greater potential from within their payroll teams. Firms like EY can help with this, either through regular webcasts and email updates, or by providing an outsourced payroll service. Don’t wait for the skills gap to widen. Start today by: l assessing your payroll team’s capabilities l identifying gaps l creating a development plan which aligns with your company’s strategic goals. The future of payroll isn’t just about processing payslips, it’s about driving insight, ensuring compliance and protecting your
most valuable asset: your people. Let’s bridge the gap, together. n
Checklist to help close the skills gap 1.) Encourage your payroll team to develop data literacy skills. Offer training in Excel, Power BI or other analytics platforms to help them unlock the value of payroll data. 2.) Train payroll staff to use dashboards and reporting tools to generate insights for HR and finance leadership. 3.) Conduct regular security audits and provide mandatory training on data privacy protocols for all payroll staff. 4.) Subscribe to regulatory update services and encourage team members to join professional associations which provide timely legal insights. EY also provides free webinars and year-end updates. 5.) Launch a payroll mentorship programme which matches new hires with seasoned professionals for regular check-ins and knowledge exchange.
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| Professional in Payroll, Pensions and Reward |
Issue 113 | September 2025
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