iscover
In an employment landscape marked by rigorous regulations, such as the new wage theft laws, HR professionals are increasingly required to ensure not only compliance but operational efficiency.
The data from the 2024 Australian Payroll Survey underscores a critical opportunity: enhancing payroll management through professional development and membership with payroll support organisations such as the Australian Payroll Association.
The current state of payroll management
On average, respondents to the 2024 Australian Payroll Survey spend 11.9 hours each week on manual payroll tasks. This significant allocation of time to manual processing not only increases the risk of errors, a major concern under the strict wage theft laws, but also represents a substantial efficiency gap that could be better served through automation and advanced payroll training.
Interestingly, the survey reveals that only 32.8% of respondents regularly track Payroll KPIs or statistics, with a staggering 67.2% admitting to not tracking these vital metrics at all. This suggests a potential lack of visibility into payroll operations, which is crucial for identifying discrepancies that could lead to non-compliance or financial leakage.
Leveraging payroll association membership for compliance and efficiency
Membership of the Australian Payroll Association offers numerous benefits that directly address these gaps:
Education and training: With only 44.4% of organisations having a stated budget for payroll training, there’s a clear need for more structured learning pathways. The Australian Payroll Association provides training and certifications that are designed to enhance knowledge and ensure that payroll professionals are up-to-date with current laws and best practices.
Governance and compliance: The survey indicates that 28.2% of organisations do not have a payroll governance framework in place. Association membership supports organisations in establishing robust governance frameworks that align with regulatory requirements and business strategies.
Analytics and decision making: Although 73.7% of organisations use payroll analytics at varying levels, only 5.8% utilise advanced metrics for strategic decision making. The Australian Payroll Association equips members with the tools to elevate their analytics capabilities, thus enabling more informed and strategic operational decisions.
Strategic payroll management: Regular requests for payroll data by boards or executive teams, reported monthly by 42.6% of respondents, highlight the strategic importance of payroll data. Association resources can empower payroll professionals to provide insightful, timely data that supports strategic business objectives.
The complexities of payroll management, highlighted by the wage theft laws, necessitate a well rounded approach to professional development and compliance. HR professionals should advocate for their colleagues’ membership with the Australian Payroll Association to mitigate risks, improve efficiencies, and elevate payroll’s strategic role in organisational success. By supporting this membership, HR not only enhances the capabilities of their payroll teams but also significantly contributes to the broader strategic and compliance goals of their organisations.
Learn more about Australian Payroll Association membership by clicking here.
