Addressing the payroll skills gap in Ireland

In a recent survey we conducted with IPASS as part of our ‘Voice of Payroll’ report, results showed that around one in three payroll professionals don’t have any formal payroll qualifications, yet employers often prioritise hiring candidates who do. This has caused a skills gap in the Irish payroll industry.

This poses a unique challenge for business owners, as they’re trying to balance the need for qualified employees with the reality that many seasoned payroll professionals actually lack these sought-after credentials.

If you ask businesses how challenging it is to find experienced payroll professionals, their response paints a clear picture of the issue. According to the same survey we conducted, we found that:

• 69% of those involved in the hiring process say it’s difficult to find skilled payroll processors.

• Among these, 25% rate it as “very difficult”, while only 5% find it “quite easy”.

Along with that, 80% of hiring managers consider payroll qualifications important when recruiting, and consider it as a benchmark for competency in the role. This isn’t surprising given the changes that employers have experienced recently regarding payroll, including Enhanced Reporting Requirements that was introduced at the start of 2024, auto-enrolment which is due to kick off in September 2025, and changes to minimum wage rates.

But here’s the paradox – 35% of payroll professionals currently working in the field don’t hold any formal qualifications. This mismatch between employer expectations and industry realities limits has resulted in large-scale demand for a more educated payroll workforce.

How Ireland can tackle the payroll skills gap

To bridge the payroll skills gap, Irish businesses have tomust take proactive steps.

1. Upskill, upskill, upskill

Even though over a third of payroll workers have no formal education ofin payroll, very few employers are willing to do much about it. If mistakes happen, people tend to outsource payroll or do very little about it. So, why not focus on upskilling your existing payroll staff instead?

When you upskill an existing member of staff, you’re cutting out the downtime and handover that comes with hiring a new employee, plus the overhead costs of outsourcing. It also makes your company more appealing to future candidates if you’re seen to be investing in staff.

For example, IPASS run regular payroll courses, like their QQI Level 6 course in Certificate in Payroll Techniques. These types of courses are a win-win for both you and your employees. From their perspective, it’s offering them more job security, and from your perspective, the payroll will continue to run smoothly, with the knowledge that it should become more efficient and streamlined over the coming months.

2. Promote payroll as a career path

There’s often a lack of awareness around payroll as a career option or skill to acquire among students, interns and other young professionals. If you’re currently outsourcing payroll and are considering bringing it in-house, reach out to your HR or finance employees. Endorse payroll as a viable service they could offer your business and see if it lands with them. Show them the demand for payroll professionals, and how getting certified could be a game changer for future career opportunities.

All in all, Irish employers have to start fostering more of a culture that values continuous professional development to build a future-proof payroll workforce. We’re proud to have IPASS join the Bright family earlier on in the year, and joined forces with them to offer a Bright Futures Scholarship. This scholarship provided full funding for the IPASS ‘Certificate in Payroll Techniques’ course for individuals looking to change careers or return to work after a break.

BrightPay cloud is now live

We’re thrilled that our fully cloud payroll solution launched last month, just in time for the 2025 tax year. With its multi-user access, real-time changes and automatic updates, BrightPay cloud is a game-changer in the Irish payroll industry.

Interested in seeing a quick demo of our fully cloud payroll software? Click the link below to check it out.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.