The people who make sure everyone gets paid on time are in short supply.
New research from the National Payroll Institute, in collaboration with Deloitte Canada, found that the Canadian payroll workforce is aging and the pipeline behind it is thin.
The report, Beyond Paydays: The Evolution of Payroll in Canada, found that 73.5% of payroll professionals expect the adoption of new technologies and automation to have the greatest impact on their role, more than regulatory change (61.4%) or data security pressures (37.9%). Modern payroll touches compliance oversight, workforce analytics, and strategic decision-making, and the skill set required has moved in tandem.
The findings show that organizations need to strengthen both their talent and technology investment, focusing on upskilling in areas like cybersecurity, AI oversight, data storytelling, and change management.
Globally, Canada is roughly in the middle when it comes to payroll maturity, explains the Institute’s press release. There’s strong compliance, but the country lags on digitalization, cloud adoption, and AI-enabled payroll. Where the function is heading and where the workforce is today sit far apart.
Survey results, combined with membership data from the Institute, show that most respondents are over 45. As that generation moves toward retirement, organizations may find themselves with teams that are understaffed, underskilled, or both.
“Payroll is no longer just a back-office function — it is becoming a strategic business capability, and the talent needed to support that shift is becoming harder to find,” said Peter Tzanetakis, President and CEO of the National Payroll Institute.
“Organizations need to act now to build future-ready payroll teams with the skills to navigate AI, cybersecurity, compliance and change.”
For technology leaders, when payroll can’t keep up, there’s little organizational data that can, in turn, feed strategic decisions. The report frames modernization as a choice, with payroll talent upskilling needing to include cybersecurity, AI oversight, data storytelling, and change management.
“From our research findings, it’s clear that as payroll continues to evolve, organizations will have to invest in both modern technology and talent development to keep pace with changing business needs and support long-term success,” said Keegan Castrillo, Partner, Technology and Transformation, Deloitte Canada.
“The future of payroll will require a combination of technology, adaptability and skilled professionals. Organizations that recognize payroll as a strategic, data-driven function will be better equipped to navigate change and respond to evolving workforce needs.”
Final Shots
- The Canadian payroll workforce skews heavily over 45, with succession planning gaps that organizations haven’t fully addressed.
- The top forces reshaping the role: automation and AI adoption (73.5%), regulatory change (61.4%), and data security (37.9%).
- Canada has strong payroll compliance but lags in cloud adoption, digitalization, and AI integration compared to leading global markets.