[India] 75% of businesses face payroll staff shortages

India is confronting the highest payroll staff shortage in the APAC region, according to a new survey, with 75 per cent of businesses reporting that their payroll services are affected by a lack of payroll professionals, Business Micro reports.

The report, Potential of Pay 2025, based on a survey conducted by ADP, also revealed that 93 per cent of businesses in India are seeking to expand their payroll teams, highlighting a growing talent gap.

The survey reportedly polled senior payroll leaders at multinational companies with over 1,000 employees. Among the primary pain points it identified, data quality and integrity were a key concern for payroll professionals, with 48 per cent of respondents intending to improve this in the next 2-3 years. A lack of automated processes was cited as the most common cause of payroll inaccuracies for 38 per cent of businesses.

Nearly half (45 per cent) of organisations stated that they partner with global payroll providers when entering new markets to ensure compliance and efficiency.

AI was revealed to be central to overcoming these challenges with more than one in three (35 per cent) Indian businesses identifying AI adoption as the primary enabler for payroll innovation over the next two to three years – the highest in APAC – while 68 per cent are reportedly integrating AI to streamline workflows and reduce reliance on manual processes.

Rahul Goyal - Managing Director, ADP India and Southeast Asia - said, “Payroll transformation is now a business imperative. With rising compliance requirements and talent shortages, investing in AI-driven automation and strategic partnerships with global payroll partners are critical. These solutions not only enhance payroll accuracy and efficiency but also elevate employee experience and operational resilience.”

Source: Business Micro

(Quote via original reporting)

India is confronting the highest payroll staff shortage in the APAC region, according to a new survey, with 75 per cent of businesses reporting that their payroll services are affected by a lack of payroll professionals, Business Micro reports.

The report, Potential of Pay 2025, based on a survey conducted by ADP, also revealed that 93 per cent of businesses in India are seeking to expand their payroll teams, highlighting a growing talent gap.

The survey reportedly polled senior payroll leaders at multinational companies with over 1,000 employees. Among the primary pain points it identified, data quality and integrity were a key concern for payroll professionals, with 48 per cent of respondents intending to improve this in the next 2-3 years. A lack of automated processes was cited as the most common cause of payroll inaccuracies for 38 per cent of businesses.

Nearly half (45 per cent) of organisations stated that they partner with global payroll providers when entering new markets to ensure compliance and efficiency.

AI was revealed to be central to overcoming these challenges with more than one in three (35 per cent) Indian businesses identifying AI adoption as the primary enabler for payroll innovation over the next two to three years – the highest in APAC – while 68 per cent are reportedly integrating AI to streamline workflows and reduce reliance on manual processes.

Rahul Goyal - Managing Director, ADP India and Southeast Asia - said, “Payroll transformation is now a business imperative. With rising compliance requirements and talent shortages, investing in AI-driven automation and strategic partnerships with global payroll partners are critical. These solutions not only enhance payroll accuracy and efficiency but also elevate employee experience and operational resilience.”

Source: Business Micro

(Quote via original reporting)