TECHNOLOGY
The payroll professional evolution: from transaction processor to strategic partner
Ian Hodson MSc ChFCIPPdip, Director of People and Culture, Housing 21 , discusses the payroll evolution and how technology, regulatory complexity and evolving workforce expectations have impacted, and will continue to impact, our profession
F or many years, payroll was often seen as a back-office function – a necessary, cyclical process focussed on ensuring people were paid accurately and on time, and often struggling to find an identity for itself from beneath the shadows of finance and human resources (HR). While the principle of the pay run remains a core responsibility, the role of the payroll professional has been undergoing a profound transformation. Technology, regulatory complexity and evolving workforce expectations are reshaping payroll from a purely operational task into a strategic, data-driven and collaborative discipline, which contributes directly to organisational performance and earns a seat round the table at many project groups. Today’s payroll professional is no longer just a guardian of payslips. They’re now a data analyst, technology adopter, compliance expert and cross-functional partner – a vital contributor to business decisions and the continuous pursuit of advancing the employee experience. But let’s explore some of the reasons why the dynamics are changing. The changing face of payroll The payroll function has traditionally been defined by its predictable processing
“Payroll is a rich source of workforce data and always has been – the people and the pounds”
timetable: process time sheets, calculate pay, handle deductions and produce reports. And repeat. This predictability meant payroll was often undervalued in strategic discussions. Yet, modern business realities are rewriting that script. Three key forces driving change are: Technology and automation Cloud-based payroll software, integrated people and finance systems and artificial intelligence are streamlining repetitive tasks, freeing payroll teams to focus on analysis, problem-solving and supporting wider agendas, such as financial wellbeing. Regulatory complexity Increased compliance requirements, from General Data Protection Regulation to gender pay reporting, and the looming Employment Rights Bill, demand higher levels of accuracy and strategic awareness. Workforce expectations Employees expect real-time access to pay data, flexible payment options and
transparent handling of deductions and benefits. The employee really is now a consumer of your organisational brand, and payroll are at the heart of this change. This shift means payroll teams must not only process payments but also provide insights, ensure compliance in complex scenarios, support change projects and collaborate with other departments to optimise experience and impact.
Technology’s impact on the payroll profession
Technology is the single most transformative force reshaping the payroll profession. Its impact is visible in several key areas: Automation of manual tasks Advanced payroll platforms can now automatically calculate tax and statutory deductions in real time, flag compliance issues and process payments with minimal manual intervention. Tasks like generating payslips are now predominantly online. Reconciling benefits and uploading pension contributions, once time-consuming,
| Professional in Payroll, Pensions and Reward | October 2025 | Issue 114 52
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