Ryan FowlerCloudPay has warned that integration complexity and legacy systems are continuing to hold back payroll modernisation as UK businesses approach the financial year end.
New data from the payroll and payments provider found that 61% of employers say integration complexity is slowing progress, while a further 29% identified legacy systems as the biggest obstacle to transforming payroll operations.
The findings highlight ongoing structural challenges across UK firms, where fragmented systems and outdated infrastructure are limiting efficiency, accuracy and decision-making.
CloudPay said these pressures are being felt most acutely during year-end, when payroll teams face increased workloads and scrutiny.
John Pearce, chief customer officer at CloudPay, said: “Financial year-end always brings extra pressure on payroll teams, but this year’s challenges highlight long-standing structural issues that businesses can no longer ignore.
“Across the UK, the payroll function is increasingly constrained by outdated systems, fragmented processes, and a lack of seamless integration with wider business technology.
“When 61% of payroll professionals tell us that integration complexity is blocking their ability to modernise, and nearly a third say legacy systems are still holding them back, it’s clear the industry faces more than an operational hurdle; it’s facing a systemic barrier to progress.
“At a time when accuracy, compliance, and employee experience are under heightened scrutiny, the ability to rely on a resilient, connected payroll infrastructure is absolutely fundamental.
“Modern payroll isn’t just about paying people correctly; it underpins trust, safeguards business continuity, and provides the workforce insights leaders need to make informed decisions.
“Businesses that fail to keep pace with today’s payroll demands risk exposing themselves to compliance errors, inefficiencies, and reputational damage.
“Year-end is a crucial reminder that payroll transformation must be a strategic priority, not a future ambition.
“At CloudPay, we remain committed to working with businesses to overcome these barriers and help them transition to unified, cloud-based solutions that deliver agility, transparency, and consistent global standards.
“The companies that embrace this shift will be the ones that build truly resilient payroll operations capable of meeting today’s pressures and tomorrow’s expectations.”
