Six in ten payroll leaders delay projects amid regulatory uncertainty 

Nearly two-thirds of payroll leaders have delayed or changed projects due to regulatory uncertainty, according to research from global advisory firm Vistra. 

A survey of 251 payroll leaders across the UK and US found that 61 per cent had postponed or altered initiatives as compliance pressures continue to grow. Respondents cited the cost and difficulty of upgrading compliant technology (46 per cent), keeping up with legislative changes (44 per cent) and training and resourcing payroll compliance teams (44 per cent) as their main concerns. 

The findings highlight the growing burden of compliance on payroll teams. On average, payroll leaders said they spend 16 per cent of their time monitoring regulatory updates, rising to more than 20 per cent in larger organisations. The result is that time that could be used to support strategic activity is instead absorbed by meeting regulatory requirements. 

Despite these challenges, the research suggests payroll functions are continuing to evolve. While only a third of organisations have fully integrated payroll with HR, time and finance systems (33 per cent), and just 16 per cent report complete payroll automation, there is a strong appetite for change. Almost all respondents (95 per cent) said they are prepared to adopt AI-driven anomaly detection and forecasting. 

The strategic importance of payroll is also increasing. Nearly all payroll leaders surveyed (93 per cent) view payroll as a strategic enabler of growth, rather than a purely administrative function. As organisations continue to expand internationally, 69 per cent said they plan to increase cross-border hiring in 2026. 

Workforce planning and employee experience are central to this shift. Respondents identified improved workforce planning (63 per cent), greater financial visibility and cost control (63 per cent), and improved employee engagement (60 per cent) as the main benefits of modern payroll solutions. Almost all payroll leaders (97 per cent) said payroll experience is a key part of their employee value proposition, with 92 per cent planning to invest in improving it over the next year. 

Curtis Holmes, executive vice president of global payroll at Vistra, said the role of payroll is changing rapidly. “Payroll has become central to how global businesses grow, adapt and build trust. It’s no longer a back-office job but one that drives strategic growth and employee satisfaction,” he said. 

“While payroll teams still face significant challenges, in particular managing varying regulations across different jurisdictions, technology is making payroll less fragmented. Payroll solutions are increasingly freeing up time for HR and finance leaders to focus on strategic planning, employee engagement, and financial control. 

“As we look towards 2026, the future of payroll is about intelligence. As global workforces evolve, it’s no longer about paying people correctly, but enabling smarter decisions across the enterprise.” 

The research points to a payroll function under pressure, but also one that is increasingly seen as critical to business resilience, growth and employee experience.