Does your organisation’s Payroll processes meet best practice? It can be hard to know for sure, especially if you’re not quite sure what best practice looks like. And even if you are aware of best practices, implementing them can be challenging, especially if there is resistance from members of your team.

Fortunately, there are steps you can take to benchmark your Payroll process and compare it to best practice. This will help you identify areas where your process is mature and areas where there is room for improvement. Once you have a clear understanding of where your process currently stands, you can develop a plan to move forward and achieve Payroll maturity.

Three ways to achieve Payroll Best Practice

1. Define your Payroll processes

The first step in achieving best practice for your Payroll processes is to define what those processes are. What specific tasks need to be completed in order for your Payroll to run smoothly? Once you have a clear understanding of the individual steps involved, you can start to look at ways to streamline and improve those processes.

2. Automate where possible

One of the easiest ways to achieve best practice for your Payroll processes is to automate as much of the work as possible. There are a number of software solutions available that can help you automate tasks such as time tracking, leave management, and Payroll calculations. By automating these tasks, you can free up time for your team to focus on more strategic tasks.

3. Review and update regularly

It’s important to regularly review your Payroll processes to ensure they are still fit for purpose. As your business grows and changes, your Payroll processes may need to change too. By reviewing and updating your processes on a regular basis, you can ensure they are always as efficient and effective as possible.

Benchmarks for Payroll Maturity

As well as taking the steps to achieve Payroll best practice, you can also use key indicators that can help you gauge your organisation’s Payroll maturity. These indicators include:

• The number of errors in your Payroll system. An effective Payroll system should have very few errors. If you’re finding a significant number of errors in your system, it’s time to make some changes.

• The amount of time it takes to run your Payroll cycle. An efficient Payroll system should be able to complete the entire cycle—from start to finish—in a timely manner. If it’s taking too long to run your Payroll cycle, something needs to be tweaked.

• The degree of automation in your Payroll system. A mature Payroll system will be highly automated, which means there will be very little manual input required. If you’re still relying heavily on manual input, it’s time to consider implementing some automation tools.

• The level of compliance in your Payroll system. A compliant Payroll system will always adhere to all applicable laws and regulations. If you’re not sure whether or not your system is compliant, it’s time to seek professional help.

By constantly striving to improve upon these key indicators, you can ensure that your organisation’s Payroll process is as efficient and effective as possible. There will always be room for improvement, so don’t rest on your laurels once you’ve made some headway.

Keep benchmarking against best practice and making changes accordingly; doing so will help you keep your edge and maintain a high level of efficiency in your organisation’s Payroll process for years to come.


Businesses can email contactus@payrollexpertsaustralia.com.au or call 1300 287 213 for free first-step advice on how to ensure your Payroll processes can safeguard your Payroll compliance. Follow us on LinkedIn or sign up here to receive our articles direct to your email inbox.