Will next year be the “golden age of payroll?” When Gartner surveyed more than 1,400 HR leaders globally to identify their priorities and challenges for 2025, researchers found that strategic workforce planning and HR technology ranked among the top five concerns. According to one industry analyst, the payroll function—a longstanding element of core HR—is set to invigorate these areas with innovative, data-based solutions.
In a recent isolved Virtual Connect session, advisor Pete Tiliakos shared his insights on the future of payroll. He noted that payroll is evolving and that several trends—from increased regulatory demands to technological advancements and data integration—are shaping its future. And he believes these changes offer significant potential for HR departments.
Payroll professionals and election year changes
With a packed global election year, Tiliakos anticipates new regulations that could impact salary processing. As political realities shift, new leaders will likely introduce legislation affecting compliance and payroll operations.
Depending on the jurisdiction, this could include changes to minimum pay rates and overtime, fair pay initiatives, tax catchups, gig worker reclassification and payroll tax adjustments. Businesses will need to stay agile, ensuring their payroll systems remain compliant and adaptable to regulatory shifts, according to Tiliakos.
Expectations from employees and employers
Stakeholders from all areas are finding increased value in next-generation pay approaches, according to the analyst. Today’s workforce expects payroll to offer more than basic compliance—they want a seamless, modern pay experience paired with tools for financial wellness, according to Tiliakos.
Additionally, HR leaders view payroll data as a resource for insights into skills gaps and future business challenges. Meanwhile, the rise in remote work has driven the need for global payroll solutions, says Tiliakos, even for companies that aren’t traditionally multinational.
The power of payroll data
According to Tiliakos, payroll is “a very important part of business agility.” Far beyond simply compensating employees, pay systems contain key workforce data that can guide strategic decision-making. This data enables organizations to respond to changing conditions effectively and informs long-term workforce planning, making payroll central to both HR and business agility, he says.
As payroll services continue to transform, future payroll leaders will play an advanced role in guiding their organizations, says Tiliakos, leveraging payroll data to inform strategic, proactive decisions that support business goals.
The ‘golden age of payroll’ professionals
Tiliakos says “solving for payroll” now encompasses a variety of tech tools, including HCM platforms, local systems, global systems, employer of record services and new fintech innovations. Regardless of the platform, Tiliakos emphasizes that the modern payroll model must be cloud-based and continuously recalculating, allowing HR professionals to move beyond transactional tasks and offering insights that shape organizational strategy.
Tiliakos describes this 2025-and-beyond period as the “golden age of payroll,” marked by automation and personalization. Self-service mobile tools and automation are reducing repetitive tasks, allowing payroll teams to take on more consultative roles.
He says practitioners will be considered “solution partners” with deep country expertise, a consultative approach and a process design mindset. This shift not only elevates the role of payroll but also positions it as a source of valuable, actionable data.
The payroll function is also moving toward a human-centered model, which Tiliakos describes as “orbiting the employee.” In this model, payroll systems will be highly flexible and predictive, using data to create an “infinite ecosystem” that connects payroll with other HR and business elements. This arrangement will result in payroll systems that not only meet compliance standards but also support employee wellbeing and enhance overall business strategy.
Credit: Source link
