HR and payroll leaders are being asked to do more than ever before, often with limited time and growing expectations.
Expectations are rising, ways of working are changing and technology is advancing faster than most teams can comfortably absorb.
At the same time, the fundamentals have not changed.
People still expect to be paid correctly and on time.
Management still needs support. Employees still expect transparency, fairness, and trust.
To understand how HR and payroll professionals view this reality, Sage conducted a survey of 1,000 HR and payroll leaders in small and medium-sized businesses across the UK, Ireland, and South Africa.
The findings reveal a profession that feels confident in its purpose, but under increasing pressure.
Leaders are optimistic about the future of HR and payroll, yet many are struggling, facing growing skills gaps, and weighing how to responsibly implement AI.
The HR and Payroll Leaders Report examines these challenges in depth and outlines where leaders should focus their attention next.
Download the report to read:
- How HR leaders and executives really feel about their roles today, including where confidence is growing and where anxiety remains
- Why skills gaps, job stress, and technology trust are creating priorities for all organizations
- What practical steps are leaders taking to modernize HR and payroll while protecting accuracy, compliance, and employee confidence
Download the HR and Payroll Leaders Report
Here’s what we’ll cover:
Confidence at work, uncertainty about the future
More than 90% of HR leaders and executives say they feel satisfied and successful in their roles, according to Sage research.
Many feel motivated by career guidance and the opportunity to play a strategic role.
At the same time, 48% say they feel worried about the future of their role.
That tension goes through research.
Leaders believe that HR and payroll are more important than ever, yet workloads are increasing and expectations continue to grow.
In both small and medium-sized businesses, leaders say they feel responsible for culture, health, compliance, talent planning, and technology adoption.
For leaders in mid-sized organizations, integration of technology and systems is often more visible, while leaders in small businesses place more emphasis on culture and day-to-day people support.
This mix of confidence and concern reflects a shift in the way HR and the role of HR leaders is defined and experienced.
HR leaders are being asked to do more, have more impact, and adapt faster than ever before.
“Align HR strategy with business objectives to improve organizational performance”
Director of Personnel, Business Services
IE-Book: A Report for HR and Payroll Leaders
Key insights, practical advice, and next steps for HR and payroll professionals in the UK.
Read the report
Pressure behind progress
One of the clearest findings of this study is the difficulty many leaders work under.
71% of HR and payroll leaders say their work has increased in the past year, and more than half report feeling burned out.
Administrative and compliance tasks still take up a large portion of the work week, even as strategic expectations increase.
Many leaders say their impact is not always well understood in the wider business.
HR still appears to be process-led, rather than a long-term value driver.
This creates a difficult balance.
You are expected to lead change while keeping day-to-day operations running smoothly.
You are asked to support managers and employees, while also building future skills across the organization.
“I would prioritize the development of strong health systems, equal opportunities for growth and open communication”
HR Recruiter, Business services
Skills gaps are growing, not shrinking
The research also points to a growing skills challenge, both for HR teams and the general workforce.
More than half of leaders say skills gaps in their organization have increased over the past two years.
Technology, data, and AI capabilities are now seen as essential, yet many teams lack the training or confidence to fully utilize the new tools.
In response, HR leaders are changing the way they think about talent.
Competency-based hiring, workforce planning, and long-term development are more important than relying on job titles alone when making personnel decisions.
This puts HR and payroll at the center of future readiness.
But it also adds pressure.
Closing skills gaps takes time, data, and support.
Without the right foundations in place, this can feel like another business-wide burden added to an already overwhelming role.
“Ensuring that every employee has a clear career path”
Head of HR, professional services
IE-Book: A Report for HR and Payroll Leaders
Key insights, practical advice, and next steps for HR and payroll professionals in the UK.
Read the report
Artificial Intelligence brings both opportunity and risk
AI is widely seen as a huge opportunity for HR and payroll.
86% of HR and payroll leaders believe AI will transform the workforce, especially by freeing up time and improving accuracy.
However, it is also one of the most worrying areas.
Many leaders worry about compliance, especially the use of AI in HR and payroll, and the potential impact on employee loyalty.
Disparate HR and payroll systems, as well as limited training, make it difficult to use AI and automation with confidence.
Research shows a clear desire for appropriate use.
Leaders are looking for tools that reduce administrative effort while supporting employees to do their best work and allowing for informed human judgment.
They want technology that supports human judgment, not replaces it.
Payroll plays an important role in the proper adoption of technology.
When automation or AI is involved, accuracy and timeliness are critical to maintaining trust.
When HR and payroll systems are well connected, it becomes easier to introduce automation and AI in a controlled way, especially in areas like payroll, compliance monitoring, and employee data.
If those systems are fragmented, even small decisions supported by AI can cause errors or uncertainty, which can quickly erode trust.
“I wish I could create an AI workforce management system that automates repetitive tasks. Allowing more time to focus on people”
Recruitment Manager, Technology
What does this mean for HR and payroll leaders
Taken together, the findings highlight the choices facing HR practitioners and compensation leaders.
There is strong belief in the future of HR and payroll.
At the same time, leaders point to the need for better support for HR teams and more connected HR and payroll systems.
Progress does not require doing everything at once.
Many leaders are already taking practical steps, from automating repetitive tasks to creating clear skill sets and putting in place simple governance for new technologies.
The most successful changes often start by focusing on a small number of important things, such as:
- To reduce the administrative burden.
- Protecting trust.
- Creating space to spend more time on people and less time on process.
“A fully integrated, AI-driven analytics platform that consolidates all HR Data…into one intelligent dashboard”
HR Director, Construction
Check out the full findings
This article provides an overview of the topics that make up HR and payroll today.
HR and Payroll Leaders’ full report is in-depth, with detailed insights, actionable frameworks and clear next steps taken from the experiences of 1,000 leaders.
If you want to measure your challenges, understand how peers are responding to the challenges highlighted in the survey and see where to focus next, download the report now.
Download the HR and Payroll Leaders Report
IE-Book: A Report for HR and Payroll Leaders
Key insights, practical advice, and next steps for HR and payroll professionals in the UK.
Read the report
