ADP survey reveals 75% of Indian businesses impacted payroll staff shortage, the highest in APAC

27 May, 2025

AI adoption and automation emerge as key solutions to bridge the talent gap and drive efficiency

Chennai, India, 27 May, 2025: India is facing the highest payroll staff shortage in the Asia-Pacific (APAC) region, with 75% of businesses reporting that their payroll services are affected by a lack of payroll professionals, according to the report “Potential of Pay 2025”. This survey, conducted by ADP, a leading global technology company specialising in human capital management (HCM) solutions, also indicates that 93% of businesses in India are looking to expand their payroll teams, highlighting a growing talent gap.

The survey, which polled senior payroll leaders at multinational companies with over 1,000 employees, identifies key pain points:

Data quality and integrity are also a key concern for payroll professionals, with 48% of respondents looking to improve this in the next 2-3 years.
38% of businesses cite a lack of automated processes as the most common cause of payroll inaccuracies.
Nearly half (45%) of organisations partner with global payroll providers when entering new markets to ensure compliance and efficiency.

Artificial Intelligence (AI) is central to overcoming these challenges. Over one in three (35%) Indian businesses identify AI adoption as the primary enabler for payroll innovation over the next two to three years – the highest in APAC – while 68% are integrating AI to streamline workflows and reduce reliance on manual processes.

“Payroll transformation is now a business imperative,” said Rahul Goyal, Managing Director, ADP India and Southeast Asia. “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.”

For more insights, access the full report on ADP’s website here.

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