In research conducted by The Access Group (TAG), a spotlight has been cast on the often underutilised capabilities of payroll and workforce management systems as key tools for enhancing business resilience. Amidst the backdrop of economic challenges, TAG’s findings serve as a clarion call to the industry, urging a re-evaluation of payroll systems not just as administrative tools, but as strategic assets ripe with insights.
Australian businesses today face a formidable landscape, marked by a 15% drop in profitability among businesses over the last year, as reported by the Australian Bureau of Statistics. This downturn is further compounded by a staggering 57% increase in business-related costs. In this environment, maintaining compliance with evolving workplace legislation adds another layer of complexity, highlighting the need for strategic tools to navigate these challenges.
The research underscores the transformative potential of payroll data, which, when leveraged effectively, can offer critical advantages in workforce planning, compliance, and overall business performance during economic downturns. Kerry Agiasotis, President APAC at The Access Group, describes payroll data as an “often-overlooked goldmine,” capable of empowering businesses to make informed decisions that boost efficiency and competitiveness.
Echoing this sentiment, Tracy Angwin, Director of Australian Payroll Association, emphasizes the importance of a strategic payroll strategy. She points out that organisations lacking a comprehensive approach to payroll, one that mitigates risks and leverages technology, data, and insights, are missing out on a vital competitive edge.
Despite the clear benefits, only 28% of business leaders view their payroll systems as more than a means to pay employees. However, with 62% of leaders keen to explore the strategic potential of their payroll systems, there’s a notable gap between aspiration and reality, highlighting a significant opportunity for strategic enhancement.
TAG’s research delves into the current utilisation of payroll systems by Australian organisations, revealing a vast untapped potential for payroll to act as a strategic driver. The report not only examines the direct business outcomes of strategic payroll implementation but also offers insights into how a broad range of operations and business practices can benefit from enhanced payroll strategies. It discusses the role of strategic payroll in driving sustainable growth and provides methodologies for the adoption, implementation, and maintenance of effective payroll systems tailored to the unique needs of businesses.
In essence, TAG’s research articulates the critical role of payroll systems in providing organisations with the strategic insights needed to navigate through challenging business climates. It highlights the untapped potential within payroll systems as a strategic resource, encouraging businesses to delve into the goldmine of data that lies within, ready to be harnessed for resilience and growth.
