'Payroll is more than a back-office function – it is a strategic driver of employee experience'
Payroll is transforming – evolving from an archaic, administrative function into a strategic business partner capable of supporting all arms of an organization. And yet, despite their growing importance, payroll teams are quietly suffering in silence with burnout, pressure and work overload.
This was the very topic of Deel’s inaugural Australian Payroll Research, an in-depth dive in the payroll sector, interviewing over 500 payroll decision-makers and 1,000 full-time employees across the country.
“Payroll is more than a back-office function – it is a strategic driver of employee experience, compliance and business performance,” added Tracy Angwin, director of the Australian Payroll Association.
“Deel’s research reinforces the findings of our own 2025 Payroll Industry Survey: the demands on payroll teams are growing, and so too is the complexity of their role. Increasingly, Australian payroll professionals are navigating international markets, preparing for new regulations, and managing multiple vendor relationships, while facing workforce shortages.”
The report found that while technology and AI is helping payroll employees, the sheer lack of staff in the sector is causing an HR headache. Deel’s research found that 92% of respondents ranked staffing related issues as their number one challenge this year, this included;
These staffing issues are compounding an already delicate situation, with Australian organisations currently struggling to fill vacant roles. According to Deel’s data, 34% of payroll professionals report having open roles available for managing payroll. What’s more, 33% say their company is at risk due to understaffing in payroll management, 26% say the number of employees managing payroll in their organisation is insufficient and 21% added that their team is currently suffering from burnout.
This is where technology comes into play. While emerging, innovative tools can help streamline tasks and support teams it’s not a panacea for all payroll’s ailment – so much so that Deel’s research found that 56% of professionals listed ‘payroll technology’ as one of their overall top five concerns.
Despite this, tech is continuing to thrive – Deel’s report found that 38% of payroll professionals cite payroll tech as the most exciting development for the future, with 62% adding that AI is helping to alleviate staffing issues, 29% say it helps save time and 27% believe it can reduce errors.
However, again, AI can’t be used blindly – having that human touch here is essential. Deel’s report highlighted that 64% of professionals are concerned about AI handling their employment data with the highest demographic of concern amongst 18-24 year olds (72%) compared to Gen Xers (57%).
“The research assesses the progress of adopting AI into payroll processes, with nearly half of payroll professionals reporting that they are currently using AI in their payroll functions, and a further two-fifths considering using it,” added Angwin. “Yet significant concerns exist about its implementation, especially in relation to accuracy.
“More training is required to alleviate pressures faced by payroll professionals who are responsible for millions of dollars in payments and ensuring those payments meet the law.”
Want more exclusive insights into Australia’s payroll sector? Download 2025 Deel Australia Payroll Report here.
