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Globalization, talent scarcity, and artificial intelligence (AI) are just three of the topics that payroll experts are getting to grips with at the moment. The global payroll market is estimated to be $73.37 billion in 2025 and is projected to reach $85.73 billion by 2029. Automation, driven by AI, is cited as one of the key growth drivers.
However, according to Clare Warrington MSc FCIPPdip AFHEA, Chair at the Chartered Institute of Payroll Professionals, innovation is gathering pace in various areas.
Key Takeways
- Global payroll is facing mounting pressure from AI adoption, talent shortages, and evolving payment models.
- Innovation in payroll slowed post-pandemic due to compliance demands, but is now accelerating again.
- AI can provide valuable insights from payroll data, enabling organizations to make more informed and strategic decisions.
- There’s a growing demand for global payroll experience, but the talent pool remains scarce.
- Flexible payment options, such as Earned Wage Access, are becoming increasingly attractive to both employers and employees.
- Upskilling and investing in payroll professionals will be crucial for managing the impact of globalization and technological shifts.
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About Clare Warrington
Clare Warrington has worked in the payroll, HR, and pensions industry for over 35 years with experience in both private and public sector payrolls, as well as managing large, shared service centres.
Currently heading up HR & Payroll for Culina Group, a large logistics company, Clare has also worked for Wilkinson’s, Sherwood Forest NHS Trust, McKesson, Bupa, and Gist, where she had a significant influence on the changing face of payroll.
Clare loves to learn, and her qualifications include the CIPP Diploma, MSc in Payroll and Business Management, CMI management certificates, Prince 11 Project Management, and SWBL level 6 teaching qualification.
Working for the CIPP for the last 13 years as a tutor, Clare teaches on the Foundation Degree in Payroll Management as well as delivering module workshops.
Post-Pandemic Pressures Have Slowed Payroll Innovation
Q: Has innovation slowed down in payroll since the pandemic?
A: The impact of changes in legislation during and since the pandemic has contributed to a slowdown in innovation within payroll.
The focus has been on delivering payroll accurately and on time, ensuring we remain compliant. We are starting to see this gathering pace now, with AI becoming a key topic of discussion.
Global Payroll Talent Is Still in Short Supply
Q: Do you think that the reported global payroll talent scarcity will continue?
A: We are seeing more global payroll opportunities being advertised. However, payroll professionals with global payroll experience are hard to find.
To help bridge this gap, the CIPP and our partners offer training courses to help payroll professionals broaden their knowledge.
AI Can Turn Payroll Data into Strategic Insights
Q: What role will AI play in gathering performance metrics and insights?
A: AI is a huge topic in payroll, and it can not only help payroll teams to streamline processes to drive organizational efficiency, but also bring a deeper level of understanding by identifying data patterns and trends, enabling organizations to collect valuable insights into payroll performance.
Payroll systems hold a wealth of critical data, and if used correctly, it can be effective in helping organizations plan better, become more strategic, and get closer to a seat at the decision-making table.
Globalization Still Challenges Payroll Teams
Q: Will globalization continue to have an impact on payroll departments, or have companies gotten a handle on it?
A: As we see more organizations wanting a one-stop solution for their data and analytics, globalization will continue to have an impact on payroll departments.
Continued support for developing the skills in the payroll department will be critical, and organizations that recognize the skill gaps and support development will manage these changes. Organizations will see issues if these skills gaps are not addressed.
The Rise of Flexible Pay Models Is Just Beginning
Q: Do you think flexible payment models will soon become the norm, including crypto payments, mobile wallets, etc.?
A: There have been so many changes in how and when employees are paid in comparison to the traditional pay frequencies. We have seen Earned Wage Access schemes take off and are often used to attract and retain talent.
The way employees want to be paid is changing, and who knows how many options we will see in the future. The demand is there for a change, and organizations will have to adapt to that demand.
The Bottom Line
Payroll is no longer just about getting people paid on time; it’s about strategy, data, and adaptability.
As Clare Warrington highlights, the future of payroll will be shaped by AI, flexible payment models, and a focus on upskilling to meet global demands.
Organizations that invest in innovation and close the talent gap will gain a competitive edge, while those that don’t may struggle to keep up.
References
- Payroll Services Market Report 2025 (Research and Markets)
- Meet The CIPP Team of Payroll & Pension Professionals (CIPP.org)
