GLOBAL PAYROLL UNDER PRESSURE TIME FOR A DIFFERENT OPERATING MODEL – EY’S IGPS

Managing payroll across borders has always been inherently complex. Today, that complexity is intensifying, driven by continued global expansion, increasingly diverse workforces and heightened regulatory scrutiny across jurisdictions. What was once a largely operational function has become a strategic focus and critical enabler of workforce continuity and business confidence, particularly for organisations operating at scale.

Payroll leaders are now expected to deliver consistently accurate, timely and compliant payroll outcomes across multiple countries, while simultaneously supporting transformation initiatives and improving the overall employee experience. These expectations are rising at the same time as payroll operating environments are becoming less predictable and more interconnected. Although payroll is often discussed at an organisational level, accountability ultimately sits with the individuals responsible for delivery, most commonly the head of payroll, HR or finance or global payroll lead.

These roles carry responsibility not only for day-to-day accuracy and compliance, but also for payroll transformation, maintaining continuity when issues arise, responding to regulatory change and ensuring payroll operations remain resilient in the face of disruption. The global payroll landscape is being shaped by the growing adoption of automation and AI, rising employee expectations, ongoing regulatory change and broader geopolitical and economic uncertainty.

Automation and AI are already reshaping payroll operations, improving data validation, reducing manual intervention and enhancing exception management. For payroll leaders, the challenge is not whether to adopt these technologies, but how to do so in a controlled and responsible manner that delivers measurable operational benefit without introducing new risk. At the same time, payroll performance has become increasingly visible to employees. Accurate and timely pay, clear information and prompt resolution of queries are no longer viewed as differentiators, but as baseline expectations. When payroll falls short, the impact on employee trust and engagement is immediate, reinforcing the importance of service quality and effective communication within payroll operations.

Overlaying this is a regulatory environment that continues to change across regions, often with limited notice. Labour and tax regulations evolve frequently, requiring constant monitoring and rapid response. Payroll leaders must ensure that changes are interpreted correctly and embedded into payroll processes without disrupting delivery or increasing risk exposure. External factors further complicate this environment.

Political change, sanctions, trade disruption and economic volatility can all affect payroll operations, sometimes with little warning. In these conditions, global delivery experience, consistent governance and the ability to operate across jurisdictions become critical to maintaining continuity and control.

Against this backdrop, successful payroll leaders are distinguishing themselves through the operating models they choose.

Rather than attempting to manage increasing complexity in-house or across fragmented local providers, they are working with outsourcing partners that bring genuine depth and scale. These partners combine strong governance, advisory capability and technology expertise, stay ahead of regulatory risk, invest in technology that enhances accuracy, visibility and control, and place clear emphasis on employee experience, particularly through transparent and reliable communication.

As a result, global payroll outsourcing has evolved significantly. It is no longer viewed simply as a means of driving efficiency or reducing cost, but as a strategic approach to managing risk, simplifying operations and enabling payroll functions to operate effectively within an increasingly disrupted global environment.

EY’s Integrated Global Payroll Solution (IGPS) has been designed to address the challenges payroll leaders are facing today, and currently provides payroll services across 157 countries, underpinned by a consistent global governance and operating model, deep regional and in-country payroll expertise and a strong focus on technology-led transformation.

Naturally, EY has been positioned as a Leader in the Everest Group Multi-Country Payroll (MCP) Solutions PEAK Matrix® Assessment 2025 – Global.

The Everest Group report notes that: “EY integrates generative AI within its internal payroll processes, streamlining payroll operations from source-to gross through validation, stakeholder communication and digital workflows.” It also highlights EY’s ‘Integrated Global Payroll Solution (IGPS)’ as a unified platform supporting multiple worker types, including employees, contractors, mobile workers and business travellers while integrating payroll, compliance, global mobility and payroll accounting.

In practice, IGPS is designed around how payroll operates in the real world, offering benefits such as:

Reducing complexity and vendor sprawl: Managing numerous local payroll providers often results in fragmented processes and inconsistent outcomes. Global payroll outsourcing helps consolidate vendors and establish a single operating model, improving governance and oversight and strategic alliances with employer of record and third-party payment service providers.

Managing compliance with confidence: Keeping pace with local tax, labour and statutory requirements across jurisdictions is challenging. A global payroll and labour law partner provides embedded compliance expertise and regulatory monitoring, reducing exposure to penalties and operational risk.

Creating capacity for higher-value work: When payroll teams are focused on resolving issues and managing exceptions, there is limited capacity for strategic improvement. Outsourcing operational complexity enables payroll leaders to focus on transformation, insight and service quality.

Accessing modern payroll technology: Advanced payroll platforms, automation and AI-enabled controls are increasingly essential but difficult to implement and maintain in-house. Leading providers such as EY offer these capabilities as part of an integrated service model. Global payroll has become one of the most complex operational functions in today’s organisations, with increasing visibility and accountability.

For payroll leaders, global payroll outsourcing is about more than efficiency, it is about building resilience, maintaining control and enabling confidence for business leaders and employees alike. EY continues to lead in this space by combining global delivery capability, next-generation technology through IGPS, and deep payroll, tax and mobility expertise. With a strong focus on measurable outcomes, EY supports payroll leaders in navigating complexity and preparing for the future of workforce management.

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GLOBAL PAYROLL UNDER PRESSURE TIME FOR A DIFFERENT OPERATING MODEL – EY’S IGPS