With decades of experience helping organizations navigate change through technology, HRTech expert Ling-Yi Tsai has a unique perspective on the critical shifts happening in human resources. Today, she joins us to discuss the profound transformation occurring in payroll management. We’ll explore why payroll is rapidly moving from a back-office function to a central issue of governance and risk, the real impact of upcoming changes like Payday Super, and how HR leaders can build resilient compliance frameworks that go beyond simply keeping up with new rules.
A significant mindset shift is underway, viewing payroll not just as an operational process but as a core governance issue. What specific, defensible evidence of accuracy should boards and regulators demand, and what are the first steps for a company to provide this demonstrable assurance?
That’s the absolute heart of the matter. For too long, a payroll that “ran smoothly” was considered a success, but we’re seeing that it can be smooth and still be fundamentally wrong. Boards and regulators are no longer satisfied with simple reassurance; they need hard proof. This means moving beyond standard reports to auditable, transparent data trails that show how every calculation was made and verified. The first step for any company is to stop making assumptions and start documenting reality. You need to map out every single process, from data entry to final payment, to identify where the risks and manual interventions are, because that’s where errors hide. The goal is to build a system where you can confidently say, “Here is the irrefutable evidence that our payroll is correct,” and that evidence protects trust, value, and the company’s reputation.
With Payday Super starting on July 1, 2026, many see it as just a timing change. Could you explain how this exposes hidden issues like delayed contributions and manual workarounds? What should an organization-wide change program for this transition look like in practice?
Viewing Payday Super as a simple timing adjustment is a critical misjudgment, and it’s a trap many employers are at risk of falling into. The quarterly payment schedule we’ve been using has provided a significant buffer, a grace period that hides a lot of operational inefficiencies. Things like delayed contributions, bounce-back payments from incorrect fund details, and messy manual workarounds have always existed, but the three-month window allowed teams to clean them up before anyone noticed. Payday Super removes that buffer entirely. Suddenly, those small recurring problems become glaring, real-time failures. A truly effective change program treats this as an organizational transformation, not a technical one. It requires a collaborative task force with representatives from payroll, HR, finance, and even IT to redesign the entire process and ensure the systems, data, and cash flow can handle the new cadence from day one.
Many organizations rely on the knowledge of a few key individuals for compliance. As regulations become more complex, how does this create exposure? What practical structures can a company build to prove ongoing compliance, rather than just reacting to regulatory updates?
Relying on a few key people is like building a critical piece of infrastructure on a foundation of sand. It feels stable until one of those individuals leaves, goes on vacation, or simply makes a mistake under pressure. As award interpretation and wage laws become more intricate, this “key person dependency” becomes an enormous liability. You’re one resignation away from a major compliance breach. The solution is to build a durable structure around change. This means having documented processes, automated system checks, and regular internal audits that don’t depend on one person’s memory. It’s about creating a framework where compliance is embedded in the system itself, so the key question shifts from a reactive “Did we miss an update?” to a proactive “How can we prove our payroll remains compliant through every change?”
For HR leaders focused on internal capabilities, what specific risks do they run by not engaging with external networks? Can you provide an example of how connecting with industry bodies helps teams stay ahead of evolving interpretations and better practices?
An insular, inward-looking approach is incredibly risky in today’s environment. When you rely solely on your internal team, you create an echo chamber. You might be very good at executing your existing processes, but you have no visibility into how regulations are being interpreted differently elsewhere or what new best practices are emerging. For example, a new Fair Work ruling might seem straightforward on paper, but engagement with an industry body could reveal that leading law firms are advising a more cautious interpretation. Hearing those nuanced discussions in a forum with peers gives you a massive advantage. It allows your team to stay ahead of the curve, adapt proactively, and avoid being blindsided by an interpretation you never even considered. Combining that strong internal structure with informed external perspectives is what allows an organization to keep pace without being in a constant state of reaction.
What is your forecast for the payroll profession?
My forecast is that the payroll profession is moving from the back room to the boardroom. The focus is shifting dramatically from transactional efficiency to strategic assurance. In the near future, the most valued payroll professionals won’t just be the ones who can process payments quickly; they will be the ones who can stand before the board or a regulator and prove, with undeniable data, that every single dollar is correct and compliant. The employers who will thrive in 2026 and beyond are those who understand this shift and invest in the technology and talent to deliver not just a paycheck, but provable confidence. It’s a very exciting and challenging time for the profession.