About the report
Scroll down and click through the different topics to read our report.
Introduction
Technology adoption
readinessCybersecurity
readinessCompliance readiness
Conclusion
It’s a changing
world out there –
and payroll is no exception.
Payroll is undergoing its biggest modernization in a generation, with automation, artificial intelligence, and APIs all becoming established as core payroll technologies that deliver key advantages to savvy adopters. So much so, that the question is no longer whether you should modernize payroll operations or not – it’s whether you’re ready to do so.
We’ve conducted detailed research engaging 200 finance, payroll and HR leaders from around the world, and uncovered a startling truth: confidence in future payroll readiness doesn’t match up to the size of the practical challenge of achieving it. And while midsize organizations are suffering in particular, enterprises are also finding it difficult to follow up on their aspirations to modernize.
There’s no time to lose in addressing this confidence gap. Cybersecurity threats are evolving and strengthening. Regulatory demands are accelerating. Cost pressures are mounting. And all this means that margins for error are shrinking all the time, and potentially leaving vulnerabilities that businesses like yours may not spot until it’s too late.
At CloudPay, we believe the best way
forward for future readiness is strength across three key pillars: technology
adoption, cybersecurity, and compliance.
All should be addressed together, as weakness in any of them will compromise
the strength of your core operations.
About
the guide
In this guide, we’ll establish the size of the confidence gap, explore the areas where the vulnerabilities lie for those at the biggest risk, and give you practical, actionable advice on how you can move from perceived readiness to proven readiness.
Our research
and methodology
To capture a snapshot of technology adoption, expertise, and future readiness in global payroll, CloudPay conducted comprehensive research with 200 senior decision-makers at multi-national midsize and enterprise organizations. All respondents submitted their views between September 8-24 2025.
Our respondents
We asked these respondents a variety of quantitative questions on a range of key payroll issues, measuring responses on scales of importance, confidence, and satisfaction. Equipped with the results, our experienced specialists in product, engineering, compliance, and security have analyzed the findings to establish data-driven insights on the current state of play.
From these insights, we’ve been able to deliver practical advice and expertise on where and how organizations like yours can improve their readiness.
Payroll modernization:
A midsize business readiness snapshot
Many Finance leaders feel that their organizations are largely ready for the future, whether that’s in technology adoption, cybersecurity resilience, or compliance adaptability. And they recognize that payroll modernization can deliver value, with only 3% expressing ROI concerns around modernization, and only 7% currently satisfied with their current costs and processes.
However, while enterprises have been more able to follow up on their confidence and positivity by taking the right steps towards readiness, midsize organizations are struggling to deliver on those same aspirations.
What does this mean for midsize organizations?
It’s clear that enterprises are more assured in their capabilities, but often move and adopt more slowly. The opposite is true for growing businesses: they’re better able to embrace agility and openness, but face greater uncertainty around security and compliance, especially when they lack the in-house capacity and expertise to deliver on their modernization goals.
In the next three chapters, we’ll explore how to bridge the gaps between perceived readiness and proven readiness across technology adoption, cybersecurity, and compliance.
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Introduction
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Amid an international landscape of increasingly intricate
and swift regulatory shifts, midsize organizations don’t
share the same confidence of enterprise firms in adapting
to compliance change.
Only 34% say they are “very confident” they can adapt
(against 45% of enterprises), while 16% say they are
“not very confident” (compared to only 10% enterprises).
This lack of confidence is important, due to the severe consequences
of compliance failures: fines, operational disruption, reputational
damage, and even the inability to pay employees in full and on time.
Having the right partnership and technology
in place can therefore make a real
contribution towards your position as
a strategic compliance stakeholder,
driving organizational resilience through
intelligent financial management.
From confident readiness
to industry leadership
CloudPay’s approach:
Scale, security, and strategic partnership
A strategic payroll partner like CloudPay can deliver the perfect blend of expertise, infrastructure,
and support. Our cost-effective approach for midsize organizations brings all the key functions
of future payroll readiness together, in a comprehensive out-of-the-box solution, designed with
scalability and simplification for midsize businesses front and center:
Technology
foundation
A unified global payroll
platform with fully integrated
automation, AI, and APIs
Expert
implementation
“High-touch” implementation
support that is proactive,
hands-on, and bridges the
skills gap growing organizations
face with integration
Built-in security
and compliance
Enterprise-grade security
(ISO 27001, SOC 2 Type II)
and embedded compliance
expertise across all operating
markets – capabilities that would
be impossible for smaller
teams to build internally
Continuous
partnership
Ongoing support that ensures technology always delivers value as your business and the regulatory landscape evolve
Key takeaways
For midsize business payroll leaders
Assess your true readiness
for payroll technology
- Evaluate actual financial reporting capabilities, including forecasting and budgeting
- Identify specific gaps in financial visibility and reporting efficiency
- Prioritize areas that present the greatest risk or opportunity
Don’t let budget constraints
delay necessary modernization
- View payroll technology as a strategic financial investment rather than a cost
- Create financial models showing long-term savings from technology investments
- Demonstrate reductions in manual reconciliations, human errors, and compliance penalty risks
Recognize that integration
skills are make-or-break
- 28% of midsize organizations cite skills gaps as their primary obstacle
- Partner selection should prioritize implementation support, not just technology features
- Look for “high-touch” providers who bridge the gap between your team’s capabilities and what’s required
Approach the ‘three As’ as an integrated capability, not individual tools
- Automation, AI, and APIs work best when deployed together
- View payroll technologies as financial intelligence generators
- Prioritize real-time reporting, predictive analytics, and comprehensive compliance tracking
Leverage your agility
- Midsize organizations can move
faster when properly supported - Use your flexibility to pilot new approaches and prove value quickly
- Look for opportunities to cut costs, optimize workforce spending, and rationalize compensation structures
Make security and
compliance proactive
- Build predictive modeling capabilities for workforce financial planning
- Use payroll technology to identify anomalies, analyze workforce costs, and track compliance
- Partner with providers already preparing for emerging threats such as quantum decryption and deepfake fraud
Ready to
turn readiness
into reality?
Future readiness in finance and payroll isn’t a destination – it’s an
ongoing journey. By combining your natural agility with the right
strategic partnerships, you can effectively compete with — and
potentially differentiate from — enterprise competitors.
CloudPay’s team of experts can help you assess your current
capabilities, identify priority areas for improvement,
and build a roadmap for proven future payroll readiness.
Ready for readiness?
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