Why failing to modernise pay systems puts talent at risk

One in five employees now prefer more frequent pay cycles.

Businesses that fail to modernise pay systems risk losing talent, as financially stressed Singaporean workers increasingly seek flexible and immediate payment options.

Deel’s 2025 Singapore Payday Expectations Report revealed that one in five (18%) employees prefer more frequent pay cycles, particularly weekly or twice-monthly payouts.

There’s also a growing interest in Earned Wage Access (EWA), an arrangement that enables employees to draw part of their wages before payday.

Earned Wage Access is gaining traction among Singaporean workers, led by Gen Zs (33%) who show strong interest, followed by 29% of working parents and 32% of expectant parents.

Awareness, however, remains limited, with 47% unfamiliar with the concept. Still, nearly three in four (74%) say they would use EWA if offered.

Despite clear demand, only around 25% of payroll teams are currently investing in EWA, signalling its low priority in payroll technology adoption.

In addition to seeking more frequent pay, workers want greater flexibility in how their compensation is structured.

Over half (57%) would prefer a higher salary with fewer benefits, 54% favour the ability to mix salary, leave, and benefits, while 24% are willing to trade a lower salary for remote or hybrid work options.

Alternative forms of compensation beyond cash are also gaining traction. About seven in 10 (69%) Singapore employees are open to receiving pay in other forms, including stocks or equity (46%), employer-backed rewards or loyalty points (34%), and cryptocurrency (28%).

“Singaporean workers are asking for clarity, flexibility and transparency in their pay – a reasonable and increasingly urgent demand," said Karen Ng, regional head of Expansion, Enterprise, North and South Asia, at Deel.

Ng, however, underscored that payroll professionals face immense compliance and operational pressures, and organisations must act to ease these burdens to deliver on workers’ evolving demands.

"The message is clear: companies must act now to modernise payroll and equip their teams with the right tools and support. When payroll operates seamlessly, it does more than reduce errors – it creates the foundation for positive employee experiences and stronger workplace trust," Ng said.

Deel’s report revealed that more than three-quarters of SMEs and mid-sized firms have payroll teams of fewer than 10 people, even as they manage employees across multiple markets.

Burnout is widespread, with 80% of organisations reporting that their teams are not functioning well. Stress levels are especially high in mid-market firms (28%). These challenges are taking a toll, with 15% reporting an increase in payroll errors and 23% considering outsourcing as workloads and fatigue mount.

In Singapore, CPF requirements have further intensified the burden, with 77% of payroll teams affected.

To address these challenges, 47% of organisations already use AI in payroll, and 46% plan to adopt it. CPF e-submission (39%), integrated payroll systems (38%), and automation or self-service tools (36%) are also being prioritised.

Still, Deel cautioned that only half of organisations have achieved real-time integration between payroll, HR, and accounting. Many continue to depend on batch transfers and manual uploads, which increase the risk of costly errors.