Six in ten payroll leaders delay projects amid regulatory uncertainty, finds Vistra research

• 46% cite cost and difficulty of upgrading compliant technology
• 44% highlight the burden of staying up to date with legislative changes
• 44% struggle to train and resource payroll compliance teams
• 95% prepared to adopt AI anomaly detection and forecasting

The research highlights how teams are adapting to new technologies, compliance demands and workforce expectations, demonstrating the growing cost of compliance.

Payroll leaders surveyed spend, on average, 16% of their time monitoring regulatory updates, which jumps to over 20% in larger organisations. Nearly half (46%) of respondents cite the cost and difficulty of upgrading technology as a major barrier to keeping pace with new requirements. Meanwhile, 44% say the burden of staying up to date with legislative changes, alongside the challenge of training and resourcing payroll compliance teams, continues to hold them back. This time, ideally invested in strategic value, is instead absorbed by compliance demands, highlighting an urgent need for innovation and adaptive strategies in payroll management.

Despite only a minority of organisations fully integrating payroll with HR, time and finance systems (33%) or achieving complete payroll automation (16%), there is clear momentum toward smarter, data-driven payroll operations. The survey reveals a decisive shift toward AI and automation, with an overwhelming 95% of leaders prepared to implement AI-powered anomaly detection and forecasting.

The digitalisation of payroll is transforming the function of payroll from a purely administrative one, with nearly all respondents (93%) viewing it as a strategic enabler of growth. As businesses continue to expand across borders, 69% of payroll leaders surveyed also plan to expand cross-border hiring in the next 12 months, highlighting payroll's ongoing strategic importance.

When asked about the key benefits of payroll solutions, organisations most frequently cited improved workforce planning (63%), greater financial visibility and cost control (63%) and enhanced employee engagement (60%). Employee experience stands out most in payroll’s new identity, with 97% of respondents saying payroll experience is a key part of their employee value proposition, and 92% plan to invest in improving it over the next year.

Curtis Holmes, Executive Vice President, Global Payroll, at Vistra, commented: “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.

“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 step into 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.”

ENDS

Download the full report: The complete Vistra Global Payroll Report 2026 is available for download here.

For further information, please contact:

Ellie King

[email protected]

About Vistra

Vistra is a leading provider of essential business services to help companies and private capital funds grow across the entire business and investment lifecycle.

Here at Vistra, our purpose is progress. As a close ally to our clients, our role is to remove the friction that comes from the complexity of global business. We partner with companies and private capital managers along the corporate and private capital lifecycle. From HR to tax and from legal entity management to regulatory compliance, we quietly fix the operational and administrative frustrations that hamper business growth. With over 9,000 experts in more than 50 markets, we can accelerate progress, improve processes, and reduce risk, wherever your ambition takes you.

For more information about Vistra, visit vistra.com