It begins like any classic horror movie, where everything appears to be normal. The office hums along, payroll cycles run smoothly, and payslips arrive on time. Yet beneath the surface, something stirs. An invisible risk – payroll non-compliance – quietly creeps toward the heart of the business.
Payroll might seem like a routine back-office task, but it is the silent engine of business trust and stability. When it works well, few notice. When it fails, panic spreads faster than a jump scare in a dark hallway.
Scene Two: When the lights flicker
Across Asia, compliance failures are becoming increasingly visible and costly. When companies fail to meet statutory requirements, handle data properly, or maintain accurate documentation, they expose themselves to substantial fines and reputational damage. In Singapore, where failure to pay outstanding CPF contributions could lead to fines of up to $10,000 per offence for repeated breaches and even jail time, recent cases in the country have highlighted the impact of such lapses.
These aren’t isolated incidents. They are scenes from an unfolding regional thriller. Tighter data privacy laws, increasingly complex regulatory frameworks, and rising audit and public scrutiny have raised the stakes. These emerging risks loom like a spectre and could hurt Asia Pacific’s businesses when they least expect it.
Compounding the problem is a widening skills gap. ADP’s Potential of Payroll 2025 report reveals that 61% of global payroll leaders, and 68% in Singapore, face talent shortages. More than half of Asia-Pacific companies (55%) report difficulty sourcing payroll specialists externally, creating compliance blind spots that can undermine business resilience.
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Scene Three: Survive
In every good horror story, the survivors are those who stay alert and take proactive steps to conquer the unknown. To survive this plot, companies must act fast, act smart and stay one step ahead of the villain.
- Outsource for accuracy
Outsourcing payroll is like hiring the ghostbusters before the haunting begins. It helps tame unpredictable costs with managed expertise, saving time and money while reducing compliance errors. - Automate the mundane
Automation minimises human error and improves reconciliation accuracy. In Singapore, 51% of multinational companies are already considering AI to manage payroll with fewer staff, while 49% plan to replace manual processes with automated solutions. Integration with HR and finance systems ensures data consistency, reducing duplication and blind spots. - Upskill for resilience
Technology works best when managed by capable people. Building in-house capabilities through targeted training on regulatory updates and system management helps close capability gaps and enables proactive responses to change.
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Final scene: Thrive and no more sequel
Businesses that treat payroll as a “set and forget” risk starring in their own horror sequel – The Return of the Hidden Costs. Forward-looking companies will transform payroll from a compliance chore into a strategic enabler. To do this, they need integrated, digitised systems that offer real-time visibility into workforce costs and risk, allowing organisations to adapt before the plot turns dark.
Modern payroll also strengthens talent retention. Accurate payroll builds trust, and trust builds retention. Employees who feel supported and paid accurately are more engaged, productive, and more likely to stay. ADP Research shows such workers are six times more likely to recommend their employers.
The scariest risks are the ones you can’t see. With the right systems, skills, and partners, payroll no longer has to be a horror story - it can become your business’s best defence against the unseen.
Jessica Zhang is the senior vice president for Apac at ADP
