Payroll teams unprepared for API adoption risking costly errors and compliance failures

• Almost two-thirds (62%) of businesses globally don’t yet have the resource or expertise to adopt APIs across their end-to-end pay process, despite recognising their critical role in enabling automation and integration.

• Budget constraints are the most common barrier, with legacy systems and a lack of integration skills also impacting the delay.

• Disconnected systems are driving inefficiencies and risk, leaving payroll teams exposed to compliance failures, manual errors, and escalating operational costs.

A new study from CloudPay has uncovered a critical gap in payroll readiness, with most organisations not yet in a position to adopt Application Programme Interfaces (APIs).

The Future Readiness Report, released on the opening day of Workday Rising in Barcelona, shows that although businesses recognise that APIs are the key to unlocking automation, integration, and real-time data flow, 64% of enterprise and 58% of midsize companies say they aren’t yet in a position to implement them.

Timo Weber, Chief Strategy Officer at CloudPay, commented: “We all know that APIs are critical for modern, efficient and error-free payroll operations. But this low level of readiness represents more than just a missed opportunity for operational efficiency, it exposes organisations to heightened risks of non-compliance, critical payroll errors, and costly manual interventions.”

The readiness gap: what the data reveals

While budget constraints are frequently cited as a barrier - named by 38% of enterprise and 35% of midsize respondents - CloudPay’s analysis reveals that the long-term financial impact of poor integration far outweighs the upfront investment. Disconnected systems lead to recurring inefficiencies, duplicated efforts, and error correction costs that compound over time. For organisations serious about modernising payroll and reducing risk, API adoption is not just a technical upgrade, it’s a strategic imperative.

This latest research follows the recent news that CloudPay has become fully certified across all five of Workday’s Global Payroll Connect (GPC) features. This 5-star certification reinforces CloudPay’s commitment to delivering a unified, real-time payroll experience for multinational organisations that, as the Future Readiness Report suggests, is critically needed. With GPC now available in 110 countries, customers benefit from seamless data synchronisation, enhanced visibility, and faster payroll cycles - empowering payroll teams to reduce manual effort and improve compliance readiness.

Timo added:

“Payroll professionals are under more pressure than ever, juggling rising compliance demands, tighter deadlines, and shrinking budgets, yet many still don’t have access to the tools they need to succeed. Our research shows that while automation and AI are gaining traction, APIs - the technology that connects everything - are being overlooked. With so few firms at the point of readiness to adopt APIs, teams are left managing fragmented systems that increase the risk of errors and inefficiencies.

“We understand the financial constraints many organisations face, but the long-term cost of poor integration is far greater. At Workday Rising this week, we’ll be helping payroll leaders build the case for API investment, so they can move from firefighting to future-proofing their operations.

“In 2026 we will be launching our new Global Dashboard – bringing together all parts of the data service and increasing control and visibility for customers. The Global Dashboard, powered by agentic AI, will streamline all data sources as part of CloudPay’s end-to-end payroll, payments and HCM experience.”

To view the Future Readiness Report and see the results tailored specifically to your business area, visit: https://www.cloudpay.com/future-business



CloudPay is transforming the world of global pay.  

We've built the world's most complete pay solution – a truly end-to-end global experience that unifies technology and people to deliver: payroll and payments; effortless automations; certified bi-directional HCM integrations; real-time analytics; structured implementation; deep compliance expertise; expert support and a trusted global partner network for unparalleled local knowledge and access.

Imagine consistent, compliant, on-time pay in every country, every time. Powered by advanced technology. Delivered by responsive experts. Tailored to your needs.

This is global pay, elevated. This is CloudPay – the High-Performance Payroll People. 

• The Future Readiness Report was compiled using 200 respondents worldwide, all at organisations operating in at least 2 territories
• 83 from midsize businesses (headcount of 150-999)
• 117 from enterprise organizations (headcount of 1000+)


Press contact
Vickie Collinge
vickie@bluesky-pr.com
01582 790 705