Outdated payroll technology is draining firms of time, money and efficiency

Outdated payroll technology is draining firms of time, money and efficiency

• Tech inefficiencies are costing organisations $291 per payroll error
• Companies are facing up to 80 days of additional work each year
• Two thirds (67%) of companies are struggling with outdated systems

A staggering two-thirds of payroll leaders cite ageing, fragmented technology as their greatest obstacle, leading to spiralling costs and inefficiencies. These limitations don’t just slow businesses down—they're costing them thousands annually. CloudPay's new report, The Business Case for Change, reveals the stark reality: companies stuck with outdated payroll systems are losing an average of 80 workdays per year, with each pay-related error setting them back $291.

The study also reveals that 67% of leaders identify ‘technology limitations’ as the biggest hurdle in payroll service delivery and processing. Despite these alarming statistics, many organisations struggle to secure investment to modernise payroll processes. Building a compelling business case for change can be challenging, as payroll transformation often competes with other priorities for budget and attention. However, as the report demonstrates, failure to do so could make firms vulnerable to escalating compliance risks and leave them lagging behind their competitors.


As John Pearce, Chief Customer Officer at CloudPay, explained, fully integrated systems must be adopted to save both time and money:
“Failing to utilise a unified approach to pay, and instead relying on outdated, manual processes adds significant time to every pay run and increases the likelihood of making errors. Each mistake, in turn, costs hundreds of pounds – and additional time – to rectify. This really does add up, particularly for larger or global pay runs. Older processes also aren’t scalable and therefore cannot support international growth and expansion, which places further limitations on businesses.”

“Utilising a modern, unified approach to pay leads to a reduction in error-making, and frees up a huge amount of time for value-adding initiatives and innovation. At a time when technology is contributing to every other area of modern life it’s surprising to see so many organisations relying on older approaches to pay, particularly in a field where accuracy and timeliness is so critical.”

For a deeper dive into the challenges and opportunities in payroll transformation, the full report can be accessed here: https://www.cloudpay.com/resources/building-a-business-case-...




About the Report

CloudPay’s Business Case for Change explores the complexities facing payroll operations in today’s global workforce. As organisations expand, the demand for operational excellence intensifies, and payroll—often overlooked—finds itself at a critical crossroads. Without strategic intervention, these challenges will only grow.

This guide provides a clear and actionable framework to help build a robust payroll transformation plan. It’s not just about change; it’s about aligning payroll with the vision of organisational leadership to drive real impact.

Press contact
Bruce Callander
bruce@bluesky-pr.com
01582 790700