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 HR leaders feel that their organizations are largely ready for the future, whether that’s in technology adoption, cybersecurity resilience, or compliance adaptability. Across the board, our survey respondents recognized 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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Cybersecurity readiness
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From perceived readiness
to proven readiness
CloudPay’s approach:
The ‘three A’s, combined with expertise
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
Leverage HR’s
strategic advantage
- HR is well ahead of payroll in proactive cost forecasting, so drive the business case
- Use a cross-functional perspective to build a coalition with payroll, finance, and other departments
- Don’t let your strategic vision be held back by technical constraints
Prioritize integration
over features
- With 32% of HR professionals concerned about integration skills, high-touch implementation support is essential
- HR’s strategic role can be unlocked through bi-directional API integration
- Integration can drive HCM adoption and improve ROI across the board
Address the AI over-reliance
concern thoughtfully
- HR is far more concerned about AI over-reliance than payroll (22% vs 10%), reflecting HR’s people-centric mandate
- Seek vendors who use AI to augment human judgment rather than replace it
- Keep humans in the loop for any decisions that impact employees
Partner to bridge
your skills gap
- Look for partners to help fill in gaps in your integration expertise
- Prioritize vendors with implementation expertise, as well as great software
- Support should include both technical implementation and strategic guidance
Think beyond payroll compliance
to HR compliance
- Ensure your payroll partner can support HR-specific reporting requirements
- Bi-directional data flows can help by coordinating and synchronizing data
- Centralized, auditable data protects you during audits
Build on your alignment
with payroll
- HR and payroll professionals agree on opportunities (55-56% cite automation)
- This alignment creates an opportunity for partnership rather than competition
- Combined, HR strategy + payroll execution + right technology partner = proven results
Ready to
turn readiness
into reality?
Future readiness in 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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