Growing demand comes as payroll teams face operational challenges
A "quiet crisis" is emerging in Hong Kong workplaces as payroll teams struggle to keep pace with workers' growing demand for wage flexibility and transparency, according to a new report.
Deel's 2025 Hong Kong Payday Expectations Report revealed that widespread financial pressures are reshaping the payroll expectations of Hong Kong workers.
Nearly half of employees (46%) said they want more frequent pay, with a preference for weekly or bi-weekly payments.
Another 81% of employees said they would consider using Earned Wage Access if offered by their employer through a secure app.
"Today's employees expect the same level of customisation and speed from their workplace benefits as they do from their favourite apps," said Karen Ng, Regional Head of Expansion, Enterprise, North and South Asia, Deel, in a statement.
"We're seeing a growing demand for payroll to be a financial service, one that empowers employees with real-time access, flexibility, and greater control over their earnings."
According to the report, employees are also starting to be more open to non-traditional salary formats such as:
- Stocks or equity (51%)
- Employer rewards or loyalty points (43%)
- Foreign currency (42%)
- Cryptocurrency (39%)
Another 81% of employees also said they would feel more comfortable with salary transparency becoming an industry standard, with 85% believing that employers could do more to help them understand their payslip and deductions.
"As the city continues to compete for top talent, payroll flexibility will be a differentiator. If payroll teams have the right tools to overcome these tech and operational challenges, they can focus on what really matters – creating positive employee experiences," Ng said.
Payroll teams are struggling
But these evolving demands are putting more pressure on payroll teams, who are facing various operational and technology challenges.
Eight in 10 payroll decision-makers in Hong Kong said talent shortages are causing heavier workloads.
More than half (52%) also said these bigger workloads are leading to higher stress and burnout. Pay issues among employees are also escalating, with the common challenges being:
- Underpayment (28%)
- Delay in payment (27%)
- Incorrect deductions (21%)
"This report reveals a quiet crisis unfolding in Hong Kong's workplaces, and the urgency for businesses to evolve – from modernising payroll to supporting financial resilience," Ng said.
Addressing the pressure
To ease the pressure on payroll teams, the report found that 88% are open to using AI tools, expecting to save costs, save time, and reduce payment errors.
Nearly half of payroll decision-makers (46%) added that they plan to increase headcount over the next year.
According to the report, payroll teams facing talent challenges should also consider implementing flexible work arrangements, which are sought by 62% of employees. Others also said they want:
- Manageable workload and efficient modern systems (61%)
- Clear career advancement opportunities (58%)
- Greater career recognition (58%)
"Employers who can align payroll innovation with employee financial needs won't just retain top talent – they'll build more engaged, productive, and financially secure teams," Ng said.
