The workforce is evolving – is your payroll keeping up?

The employment sector is evolving, and employees are feeling the strain.

• 1.2 million people will roll off fixed-rate mortgages in the next 12 months – rising to half of UK mortgage holders by 2027.

• Unsecured lending is soaring – four million new credit cards were issued last year, with 15% year-on-year growth.

• Real incomes define 2025 – as costs rise and inflation bites, every penny counts. Employees need more control, faster access to pay, and seamless financial experiences.

People expect better access to financial security and affordable financial products. Yet, the financial ecosystem has not modernised to meet these needs.

One workforce – five financial realities

Each generation faces different financial pressures but expects flexibility, security and digital ease.

• Over-50s: working longer, borrowing later. Many are choosing to work past retirement age, some need to.¹ Fast finance (BNPL) usage among over-55s up 37% and mortgages into later life increasing. They value career flexibility, tailored benefits, and financial security – and are the most frustrated in being hampered to get it.²
• Gen X & Millennials: The ‘sandwich generation’. Juggling careers, family, and future planning, they want structured career progression, financial wellness support, and instant access to pay and benefits – expecting workplaces to mirror the seamless digital experiences they use daily.
• Gen Z & Gen Alpha: digital-first, purpose-driven. These younger generations expect AI-powered automation in everything they do. They prioritise employers that align with their values, and face barriers to financial inclusion, with many of under-24s lacking a traditional ‘credit history’.

Employers that fail to adapt risk losing talent.

Regulation is reshaping finance – and payroll plays a key role

Laws are shifting power to individuals, increasing transparency and automation:

• The Digital Information and Data Bill gives people control over their data and requires businesses to be clear on how they use, store and share it.
• The FCA’s Consumer Duty rules ensure financial services are fair, transparent and in the customer’s best interest.

Yet income and employment data remain outdated, fragmented and slow to access. This is a missed opportunity for businesses to empower employees and improve efficiency.

The opportunity to transform exists today

Payroll teams don’t need to share data themselves – they only need to enable employees to choose. This can be done securely through existing payroll software, via an encrypted, private feed that reduces fraud and identity theft risk.

Many payroll teams are simply unaware of this opportunity.

This isn’t a future innovation – it’s already live. Experian has partnered with payroll providers to enable real-time payroll data sharing and transform financial services with lenders such as Nationwide Building Society.

Check if your payroll system is connected. If not, we’ll help you switch it on effortlessly.

Life doesn’t wait. Let’s create a more inclusive and effective ecosystem that benefits each stakeholder.

Get in touch at datasharing@experian.com

^{1 The Second 50: What living longer means for you and your employees | Employer | Aegon}

^{2 Analysis derived by Experian, through owned and commissioned data (external data based on 776 respondents, February 2025)}