Payroll functions urged to leverage API technology to boost efficiency

As National Payroll Week returns for its 27th year and the industry celebrates the benefits that emerging technology offers, CloudPay has advocated for payroll teams to consider how to improve productivity through better API integrations.

In a recent study¹ by the global leader in payroll and payments solutions, 93% of firms said seamless API integrations are critical for accurate and efficient payroll processing, yet only 5% fully leverage their potential, and 68% still rely on input capture via Microsoft Excel.

CloudPay has urged pay teams in these companies to reconsider how they are accessing the potential of API’s, particularly at a time when the firm’s latest Payroll Efficiency Index 2025 revealed growing complexities in the profession.

Data from the study showed a 1.21% fall in first-time approvals, which, combined with an increase in supplemental runs and a 12% rise in calendar lengths, suggests a longer-term shift to accommodate more nuanced requirements in an increasingly complex market.

As John Pearce, Chief Customer Officer at CloudPay, explains, the function is becoming more responsive, and those that aren’t utilising API integrations to their full potential will fall behind:

“National Payroll Week gives us all an opportunity to reflect on the growth of the function, and our data shows the huge impact that emerging technologies are having on the profession. Most recently, our study indicates a clear recognition from organisations of the critical role played by API integrations, but it also shows that far too few firms are fully leveraging their potential. Maximising the benefits offered by APIs, along with AI and automation, is key.”

“With over two-thirds of respondents still using Microsoft Excel for data input capture, for example, it suggests many are not fully leveraging technology to automate and streamline the traditionally arduous and time-consuming elements of payroll. For midsize businesses, we see even higher use of manual spreadsheets, which puts them at a competitive disadvantage to larger firms, who we know do leverage unified solutions more widely.”

“At a time when many pay teams are stretched thin due to skills shortages and resource cutbacks, leaning on technology more effectively makes complete sense. Maximising its potential does not need to be complex, and the best solutions are backed by intelligent automation, global expertise and best-in-class customer service, and are fully adaptable to individualised needs. Payroll as a profession is moving towards a more tech-enabled future, and the businesses that don’t join this journey will be left behind.”