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Navigating the future of payroll 

your strategic playbook

Want the latest insights into the world of payroll? This playbook is designed to provide valuable guidance and help you navigate where you need to take your team next. 
Plus, it’ll provide you with extra content that will let you dig deeper into payroll’s hot topics.

If you just want the overview, look no further! We’ve highlighted the three key themes running through every area affecting the payroll industry.

Here's what you need to know…

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Here's what you need to know

Reduce your admin

Most organisations are dealing with heavy admin burdens that are slowing them down, but they’re reluctant to change them. That nervousness makes sense – although slow, the processes work and have done for years. But to stay competitive and to boost employee engagement, they need to change.

Overcome skills gaps

Skills gaps are a problem everywhere, but they often get felt more keenly in payroll departments. That’s because they’re often built around small teams of experts, which leads to issues when dealing with absences, or shifts in legislation. 
When payroll teams are working flat out just to 
get people paid, when can they pause to stay on top of their own development?

Empower employees

Outsourced payroll is the best solution to a huge range of payroll headaches. But organisations can be hesitant to look into it, because of a perception that it involves ceding control to another party. 
Is the solution AI, or outsourced teams of experts that enable your in-house employees to focus 
on strategy?

Simply select the area you want to explore to get started!

Tell me about AI

AI is changing the game across the world of work, 
and payroll is no exception. Come see how AI is evolving payroll.

Tell me about legislation

Payroll has always had some grey areas to consider spaces where legislation isn’t always clear-cut.

Tell me about migration

Moving your payroll from one system to a another can seem like a terrifying prospect. 
When do businesses need to make the transition?

Tell me about cybersecurity

Your payroll team are sitting on a wealth of sensitive information. 

I want the latest research

Did you know 90% of organisations are making mistakes that impact their employees’ pay? 

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Artificial intelligence (AI)

"

AI is taking the information at our fingertips and pulling it into the right context to make our lives easier.

The current state of play

AI isn’t here to steal jobs, but that narrative still holds firm in a lot of people’s minds – particularly in payroll departments. But payroll decisions have a huge impact on people, therefore AI works best when it’s your copilot. Not a replacement for what someone does, but a helpful little assistant that can smooth over your daily tasks. A companion, or a helpful colleague, rather than a new manager.

Three ways AI is making waves in payroll:

  • Shortcuts make the day-to-day quicker, from character recognition tech that extracts key data 
    to eliminating manual data entry entirely
     
  • Huge strides in accessibility as AIs are great at summarising things in plain English, freeing 
    up your payroll team to handle strategy while AI answer questions from other employees
     
  • Overcoming skill gaps and knowledge transfer issues, ensuring your payroll doesn’t rely on 
    one key player

Get the details with our webinar all about AI in payroll, including details on how businesses can more effectively adopt AI.

"

Andrew Watson

Chief Technology Officer, MHR

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Migration

"

When we talk about migration, you can become focused on the start and end point, but a migration should be a continuous project to get the most benefits out of your solution.

The key to long-term success

Migration is an umbrella term that covers moving your data from one system to another. It sounds like it should be really simple, but many organisations worry that it’s one of the most complicated processes in the world of work- especially when it comes to payroll.

It’s not just a few changes to your technology. It’s a complete rework of one of the most important engines that keeps your business running. But when you give the migration the time and care it needs, then you can absolutely transform your day-to-day and unlock new potential for your organisation.

Three reasons organisations don’t migrate:

  • Security concerns, whether in the process of migrating or after, especially when moving to cloud software, even though cloud software offers the latest security innovations

  • The fear of new technologies substituting human talent, although those same technologies often enhance human talent rather than replace it 
     
  • The perceived costs of moving, even when it can wind up costing less to your organisation in the long term

If you want to learn more about payroll migrations, including when organisations should look 
to migrate, and how to overcome key blockers from stakeholders, check out this webinar.

Not sure if you and your team need to look into payroll migration? 
Take a look at our blog on the three key signs to watch out for. 

"

Rosie Trowsdale

People First Practice Manager

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Legislation

"

Payroll becomes more and more complex over time as more responsibility is given to the payroll departments, and all areas of the business are having to become much more interconnected.

Certainty at all stages

The last few years have been quite volatile, and the constant shifts to payroll legislation reflect that. From changes to holiday pay and flexible working requests becoming a day one right, we’re expecting a number of new changes. Staying on top of those will be vital. In fact, in the CIPP’s Future of Payroll 2024 Report, legislative knowledge topped the list for the most needed skills by payroll professionals, with 96% of those polled saying they were important. 

These updates become interconnected across different teams. It can often lead to some work being taken off one department and placed onto payroll’s already overloaded plate.

The three legislative risks to businesses:

  • Penalties from official organisations – fines and penalties can eat into your bottom line
     
  • Demotivating employees – people ultimately come to work to get paid, if you can’t guarantee that they won’t want to perform at their best
     
  • Reputational damage – if you become known as a company that messes up on payroll, 
    investors, customers and potential new hires are less likely to want to work with you

To learn more about legislative changes in payroll, check out our webinar on the subject. 
It includes details on the anticipated mandatory changes for 2026, and the Labour Government’s plans to ‘make work pay.’


To get on top of what you need to know, take a look at our ultimate guide to 
payroll legislation.

"

James Manning

Product Manager, MHR

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Cybersecurity

"

When people think of a breach, they probably think of the impact on the company, but this can have serious ramifications for the individual, too.

Protect your valuable data

Payroll systems are a treasure trove of sensitive information, including data classified as Special Category under GDPR. The ability to access personal information such as addresses, dates of birth, next of kin and even health information makes your payroll systems attractive to potential hackers – so it’s evident that cybersecurity should be a primary concern.

Any cyberattack can have disastrous repercussions for a company, but an attack on a payroll system can have an equally devastating impact on employees, leading to financial consequences, anxiety and stress. A successful attack could lead to missed payments, impacting credit ratings and other 
long-term impacts. 

Unfortunately, such attacks do happen. So, what should payroll professionals and businesses do to enhance their measures? 

  • Multi-factor authentication – this relatively low-cost tactic is highly effective as a vital second 
    line of defence 

  • Proactive detection and response – just as banks have multiple protective measures in place, 
    so should your organisation
     
  • Misconfigurations – reduce the risk of hackers getting access by adhering to implementation guidelines and regular patching 

Good cybersecurity is akin to fine cooking – mastering the basics is paramount. Establishing good hygiene protocols, enforcing access controls and the diligent implementation of multi-factor authentication all form the bedrock of a resilient defence against cyber threats. 
 

"

Shaun Hand

Head of Cyber Security Operations, MHR

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Payroll research

People come to work to get paid, which is why payroll is one of your most important functions. Yet unlike a lot of other departments, payroll often doesn’t get the investment it needs to thrive.

To uncover what’s really going on, we surveyed 400 payroll managers and senior leaders working in organisations with at least 400 employees in the UK and the Republic of Ireland. The result? This handy research report covers everything question you could have about where payroll is and where it’s going.

If you want the details on:

  • The skill gap troubling payroll departments around the world
     
  • How technology can make a real impact on your team
     
  • Why payroll can often end up being a time and money sink without investment
     
  • All backed with numbers and data from payroll professionals at the top of their game

Then download your copy and learn more.

Download report

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