The Importance of Professional Development in Payroll: An Expert View

In today’s business world, payroll is often seen as a back-office function—important, but transactional. Yet upon closer inspection, this perception couldn’t be further from the truth. Payroll professionals are not only responsible for ensuring that all employees are paid accurately and compliantly, but they also safeguard employee trust and support financial planning in their organizations.

In such a high-stakes, fast-evolving environment, professional development isn’t optional—it’s a strategic necessity. However, professional development in payroll isn’t just about keeping up with legislation. It’s also about building confidence, communication skills, and visibility—especially in organizations where payroll still struggles to get a seat at the leadership table.

To explore the important role of professional development in payroll, we spoke with Samantha O’Sullivan, Policy and Advisory Lead at the Chartered Institute of Payroll Professionals (CIPP), who shared her insights to help payroll professionals advance their careers and expand their influence within their organizations.

Payroll operates in a highly regulated and fast-changing environment, with legislative changes occurring both annually and mid-year. For payroll professionals, keeping up with these changes is essential to remain compliant, making ongoing learning a key requirement.

“Payroll is an industry that is constantly evolving. In the beginning of the tax year, there are changes in tax bands, national insurance rates and more. But new legislation is also being introduced throughout the year. The employment rights bill, for example, is going to be a big change for payroll professionals, and that’s going to have a real impact come April 2026,” Samantha states.

In this ever-changing legal landscape, certification and structured development help payroll professionals stay relevant, credible, and effective in their role. Additionally, membership bodies like the CIPP offer CPD and policy updates.

“Payroll professionals don’t have the downtime to research everything they need to know, so CIPP does that on their behalf. We digest the information and provide clear, concise updates to ensure they’re prepared for upcoming changes,” she adds.

"Payroll professionals don’t have the downtime to research everything they need to know, so CIPP does that on their behalf. We digest the information and provide clear, concise updates to ensure they’re prepared for upcoming changes."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Although many payroll professionals say they “fell into” the career, growth and development in the field are far from linear. Some follow a traditional path—progressing from apprentice to team leader, then on to manager and director roles. Others branch into areas like payroll software, legislation, policy, or training. “At the CIPP, for example, our membership magazine ‘Professional’ is edited by someone who began as a payroll professional but pursued a passion for writing,” Samantha notes.

Similarly, there are multiple professional development pathways available to payroll professionals, and formal qualifications are by no means the only option. Advancing to higher levels of CIPP membership, participating in CPD sessions, or mentoring junior colleagues can all contribute meaningfully to professional credibility—as Samantha knows from experience.

“Finding a development route that aligns with your lifestyle and career goals is essential for long-term growth. For me, undertaking a formal qualification—which might take months or even years—doesn't suit my current circumstances. Instead, I chose to apply for Fellow and Chartered Membership with the CIPP. It gave me the sense of achievement and professional recognition I was looking for, without the need for extended study. It’s about exploring what’s available and enhancing your career in a way that works for you.”

"Finding a development route that aligns with your lifestyle and career goals is essential for long-term growth. It’s about exploring what’s available and enhancing your career in a way that works for you.”

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

When recruiting for payroll roles, most organizations look for candidates with a certain level of formal qualification. However, what’s often overlooked is the need for ongoing support to help payroll professionals stay compliant throughout the year. “Not many organizations continue that development—yet it’s essential to keep payroll teams upskilled to avoid errors in areas like National Minimum Wage compliance,” says Samantha.

Another challenge is that payroll professionals are frequently pressed for time and may not have the capacity to commit to formal CPD activities. In such cases, accessible, flexible learning opportunities become invaluable. “At the CIPP, we offer a professional magazine, regular webinars, and short, bite-sized training modules,” she explains. “We also send out a weekly ‘News Online’ email, keeping members informed of the latest industry updates they need to know.”

Payroll is often reduced to a numbers-driven function—focused on spreadsheets and payslips. In reality, though, it’s a deeply people-oriented profession, making soft skills an essential requirement.

“You need empathy and understanding. You have to be a good listener and a strong communicator, because when an employee picks up the phone to question their payslip and tells you they’re now short on paying a bill, you really need to listen—and be able to explain in layman’s terms why their pay has changed.”

But payroll’s importance as an employee-facing function goes beyond financial queries. Its role in supporting employee financial wellbeing highlights just how integral it is to employee retention. Without payroll, there would be no workforce to begin with.

“People go to work to get paid. It’s a bonus if they love their job, but the main reason they show up every day is because it pays their bills. If your payroll team is making errors—paying people late, incorrectly, or inconsistently—those employees won’t stay. They’ll move on. Business leaders need to understand that payroll directly impacts employee satisfaction and retention,” Samantha emphasizes.

And payroll’s influence doesn’t stop there. Like HR, payroll remains a constant presence throughout the employee lifecycle. “When someone joins a company, their first touchpoint is often payroll—completing a new starter checklist. And the last thing they receive when they leave is their final payslip and P45.”

“When you work in payroll, you're part of an employee’s life journey—through marriage, childbirth and even personal loss. That’s why soft skills are so important. And it’s something that often gets overlooked,” she adds.

"When you work in payroll, you're part of an employee’s life journey—through marriage, childbirth and even personal loss. That’s why soft skills are so important."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Amid last-minute payroll changes, legislative updates, and urgent calls from employees, soft skills like empathy and resilience have become increasingly vital. Effective payroll management requires more than just technical expertise. It demands active listening, empathy, and clear communication. These abilities are especially important when resolving errors, managing disputes, or explaining complex changes.

Another soft skill that is often underestimated is emotional resilience. Samantha emphasizes the emotional demands placed on payroll professionals: “Business leaders often don’t appreciate the emotional strain payroll can put on people. If you have an employee shouting at you on the phone because their pay isn’t what they expected, you take it home with you at the end of the day. What we do enables people to put a roof over their family’s heads and meals on the table. Leadership often lacks that perspective of what payroll professionals face daily.”

This lack of understanding and support from leadership makes developing emotional resilience a significant challenge. “I believe it’s the organization’s responsibility to provide resources like employee assistance programs so teams have someone to talk to when needed. At the same time, payroll managers must foster an environment where their teams feel comfortable having open conversations,” she adds.

Building soft skills should also be an integral part of professional development. “One of the events we’re running this year at CIPP focuses specifically on soft skills in payroll,” Samantha notes. “Through membership of professional bodies, payroll professionals can access CPD opportunities tailored to this area.”

"What we do enables people to put a roof over their family’s heads and meals on the table. Leadership often lacks that perspective of what payroll professionals face daily."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Automation and AI are already reshaping payroll processes, with 42% of UK organizations reportedly using AI in payroll operations (Source: HR News). Automating routine manual tasks allows payroll professionals to focus on more strategic responsibilities. Upskilling is essential to stay relevant and to ensure payroll remains efficient and ethical.

“The running joke is that payroll is just pressing a big red button once a month so it runs itself—and that’s exactly how payroll software should work. Payroll professionals should be able to rely on technology for routine tasks, freeing them to focus on strategic planning and advisory roles. For example, if a cost center is paying millions in overtime at time-and-a-half rates, the company might save money by hiring additional staff at a standard rate instead,” Samantha points out.

However, many professionals remain hesitant to embrace AI fully. “People are often scared of AI because they don’t understand how their data will be used,” she explains. “But many software providers already use AI capabilities. Anyone working in operational payroll should start by exploring what their software vendor offers—most have specialist groups or training materials available.”

“The running joke is that payroll is just pressing a big red button once a month so it runs itself—and that’s exactly how payroll software should work."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Payroll plays a crucial role in compliance, budgeting, and strategic workforce planning. Yet, its strategic importance is frequently overlooked by business leaders, meaning payroll is often the last function to be consulted on key decisions.

“Payroll often seems to be the last function to hear about major decisions, but those decisions often land on payroll’s desk because we’re responsible for implementation and payment. If payroll isn’t invited to key meetings, we can’t advise on compliance or best practices,” Samantha notes before offering some practical advice. “National Minimum Wage rates are announced in November, giving employers until April to implement them. Payroll can forward a complete plan with salary forecasting and more to help with wider salary planning for the organization.”

Payroll leaders can demonstrate value through accurate forecasting, early involvement in decisions such as bonus schemes, and by telling the business impact story. However, for payroll to influence broader decision-making, it needs a seat at the C-suite table.

Despite growing calls for payroll representation at the executive level, many organizations still view payroll as a back-office function. “It’s time organizations recognize payroll as a strategic player. Payroll should be a standalone function with a seat at the C-suite table,” Samantha asserts.

For those in organizations where this is not yet possible, she advises: “Make sure you have regular catch-ups with decision-makers who do sit at that table. Even if payroll isn’t present directly, ensure your voice is heard through those who have the necessary influence.”

"If payroll isn’t invited to key meetings, we can’t advise on compliance or best practices."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Leadership in payroll starts with visibility, advocacy, and educating business leaders who may underestimate payroll’s impact. While developing the confidence to speak up may fall outside traditional CPD, payroll professionals benefit from a strong community network.

“The payroll industry has a strong community feel. Professionals support each other through networks, industry events, and peer conversations about challenges in their organizations. It’s about knowing you’re not alone and that collectively, payroll has a loud, influential voice,” Samantha says.

She encourages payroll teams to take small but meaningful steps to elevate the function within their organizations: “Celebrate National Payroll Week, implement payroll inductions for new employees, reach out to your professional network, and attend CPD sessions. Start small, and the rest will follow naturally.”

Though professional development is a personal journey, Samantha’s advice to payroll leaders remains consistent: “Don’t stop pushing for greater awareness. When budgets are being set, bring your knowledge to business leaders who oversee payroll. Show them how payroll insights can inform wider company decisions.”

“The payroll industry has a strong community feel. It’s about knowing you’re not alone and that collectively, payroll has a loud, influential voice."

Samantha O’Sullivan

Policy and Advisory Lead at the CIPP

Samantha O’Sullivan is the Policy and Advisory Lead at the Chartered Institute of Payroll Professionals (CIPP), where she works alongside payroll professionals to shape the future of payroll through legislative change, upskilling, and compliance. She is a self-confessed payroll enthusiast with 18 years of experience in the payroll industry, having worked as a payroll manager in both private industry and a payroll bureau environment.

In her role at the CIPP, she ensures the profession is heard and understood through consultations, government representation, and formal publications. She was recently announced to have made the Reward 300 list for 2025, which recognises individuals who have played—and continue to play—a key role in shaping the future of Pay & Reward within businesses.

In addition to her work at the CIPP, Samantha regularly shares important legal updates and other industry-specific news on LinkedIn.