Inefficient Payroll Processes Causing Stress and Stifling Strategic Growth for HR Leaders 

Human Resources (HR) leaders globally are grappling with heightened stress levels, burnout, and constrained strategic endeavours due to outdated payroll technology and processes, as highlighted in a recent study. 

These new insights were drawn from a comprehensive survey undertaken by OnePoll involving 250 payroll managers hailing from businesses of various scales based in the United Kingdom. Although originating from the UK market, the findings offer insights that resonate with HR professionals in Australia. The study unveils that nearly one in three (32%) payroll managers spend over seven days each month on payroll-related tasks, curbing their capacity to engage in more strategic pursuits. 

Amongst those operating within medium to large businesses, employing a workforce of 500 to 999 individuals, the impact of antiquated payroll processes is especially pronounced. Astonishingly, a substantial 90% of payroll managers in this category are compelled to manually input data into spreadsheets each month to facilitate employee compensation. 

Consequently, a significant 77% of respondents from medium to large businesses assert that payroll management is a substantial source of stress and contributes to feelings of burnout. An almost identical percentage (78%) feel hampered in their efforts to focus on strategic initiatives due to the inefficiencies prevalent in their organisation’s payroll procedures. A staggering 71% of these professionals acknowledge the necessity of changing their existing payroll provider, with an additional 78% expressing a desire to transition to a new payroll system. However, apprehensions surrounding the potentially arduous and time-consuming transition process are holding them back. 

Commenting on these findings, Brett Cowan, CEO of Payroll Experts Australia, emphasised the significance of payroll administration and its implications for organisational advancement: 

“Payroll is the very foundation of an organisation’s commitment to its workforce.  The exodus of very experienced Payroll specialists will leave most organisations in the worst of all worlds – losing capability and capacity at the same time as needing those skills to fix the source of the problem which caused the exodus in the first place” Cowan concluded. 

The challenges and opportunities underscored in this UK-based research echo resoundingly across the Australian landscape, urging organisational leaders to re-evaluate their payroll processes and embrace technology-driven solutions for a more efficient and strategically empowered future. Need help in how to make this happen in your organisation? Chat with one of our eXperts today. 


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. 

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