Why companies must prioritise payroll — the hidden driver of HR success

Don’t underestimate the importance of timely, accurate and transparent payroll. It’s vital for any business because it builds employee trust and facilitates staff retention.

New research from HR services and payroll provider SD Worx shows that payroll is emerging as a strategic engine that drives trust, transparency and employee experience at every level.

According to the SD Worx survey, based on insights from 300 HR professionals and 1,000 employees across Ireland, employee retention and turnover are the biggest HR challenges for Irish employers.

However, in a tightening labour market, retention isn’t just about the perks a business offers. It’s about delivering the basics well. Ultimately, there’s nothing more fundamental to every staff member than efficient payroll, which has a direct impact on their wellbeing. After all, financial stress — experienced by over 45% of employees — is a major contributor to employee anxiety.

“Getting payroll right — on time, accurately and transparently — builds immediate trust with employees,” says Eimear Byrne, Country Lead, SD Worx Ireland. “It’s one of the most tangible expressions of how a company values its people.” 

Payroll plays a growing role in the overall employee experience. Whether it’s flexible pay options, access to payslip data or personalised benefits, modern payroll systems are helping HR teams deliver more tailored, people-focused journeys.

The survey also highlights another rising priority: pay transparency. “Transparent payroll processes foster fairness, inclusion and a sense of security,” says Byrne. “In this way, payroll helps organisations not only comply with evolving legislation but also build cultures rooted in equity and accountability.”

Security and data privacy are also top of mind, with 32% of Irish employers citing secure payroll management as a key concern. In an era of heightened regulation and rising employee expectations around privacy, organisations must ensure that payroll systems are robust, compliant and fully aligned with data protection standards.

Payroll and HR data are also critical for internal mobility because they provide visibility into skills, tenure and compensation trends, enabling smarter workforce planning and talent development. With over 40% of Irish employees open to changing roles internally, payroll insights can help identify progression opportunities and ensure fair, data-driven reward structures.

“Payroll is no longer just an operational necessity,” says Byrne. “It’s a strategic asset that provides the foundation for meaningful transformation — one that enhances trust, enables agility and contributes to a thriving workforce and society.”

This article originally appeared on Future of Work 2025 in partnership with Businessnews.ie. It is republished here with permission.