Did you know? According to the 2019 Payroll Benchmark Report, a staggering 83 percent of 1,831 employers confessed to not having updated their payroll software since 2000.
That’s not all. Of the remaining 17 percent of employers who had recently updated their payroll software, three-quarters of those employers admitted to using products suited for small businesses – despite half of them running a business of more than 100 employees.
Based on these findings, it’s clear that Australian employers have some serious catching up to do.
Why most employers don’t upgrade
Unfortunately, most employers who do embrace new technology are small business owners.
Why? Because for larger enterprises, migrating from an older legacy system to a modern, cloud-based solution is considered risky, complex, and time-consuming.
To an extent, this makes sense. Large enterprise payroll systems are complex beasts. They have to do a lot of behind the scenes work to make sure employees are paid the correct wages and benefits on time, every time. Any disruption to this workflow, no matter how beneficial in the long term, could be devastating.
However, the risks of not upgrading your payroll software poses its own unique consequences. Worse still, many of these risks can go undetected for years before the alarm is raised.
Here are 3 ways the use of outdated payroll software could be hurting your business.
1. No backups or disaster recovery plan
If your business were to experience severe weather, a sudden power outage or IT malfunction, or even a malicious cyber-attack – can you confidently say that your payroll data would be safe?
If the answer is ‘No,’ then the time to upgrade is NOW … before such an event occurs.
Unfortunately, implementing a payroll backup plan can be complex, especially if your payroll system is large. The key to saving you time and money is by outsourcing your payroll duties to a dedicated payroll expert. They can implement a custom backup and data recovery plan just for you.
Depending on your needs, the plan can cover crucial aspects like: automatic daily backups of data (either to a secure cloud, multiple devices, or an external server), alternative payment options for staff if one option fails, and educating staff on what to do if the payroll system ever fails.
As a result, you can rest easy knowing that your payroll system is safe and secure, no matter what happens.
2. Reduced productivity and efficiency
Sticking to paper and manual-based tasks can easily chew up time in the payroll office.
For starters, paper documents need to be printed, stored, and collected later for record keeping purposes. Sometimes multiple copies need to be printed, which negatively impacts the environment. On top of this, paper documents must be categorised so they can be easily found later on.
Furthermore, older payroll software lacks the automation capabilities of newer software. This leaves the burden on payroll staff to fill the gaps – ranging from manual interpretation of timesheets, collation of leave requests, and pay – where that same time could be better spent elsewhere to improve the business.
These days, modern payroll software can save both employees and payroll staff time. Tasks that were once done manually can now be automated. For example, web-enabled clocks can automatically track start and end times for employees, and then transfer that data to the relevant timesheet with automatic interpretation. Plus, newer DMS (Deduction Management Systems) can automatically take care of payroll deductions, such as child support, union fees, and superannuation, to name a few.
Best of all? Aside from saving you time and hassle, this greatly reduces the risk of human error. As long as the software is set up correctly, checked on an on-going basis and managed by a highly skilled payroll expert, you have nothing to worry about.
3. Inability to grow
Has your payroll system stayed the same since the days of having 30 staff compared to now where you have closer to 300 staff?
If so, you could be in trouble. Why? Because your payroll software may lack the ability to manage your growing workforce.
Worse still, the use of outdated payroll software could hold you back from growing. Instead of expanding to include a more diverse and capable workforce, you’re forced to settle for only what your payroll system can handle.
By upgrading to a modern payroll system, one that can comfortably manage a large and diverse workforce, you will enjoy these all-in-one benefits:
- Easy interpretation of Modern Awards and EBA rules
- Clear visual reports to help you plan
- Employee self-service online portals to free up administration time
- Web-enabled and biometric clocks for instant time capturing
- Plan for projects, shifts, and estimate costs with a workforce management portal
- General ledger and deduction management
Best of all? When you enlist the help of a company like E-Payoffice, one of our dedicated payroll experts will look after you. They can set up and manage your payroll for you, thus taking the stress out of payroll for you.
Tired of being let down by slow, outdated, and inefficient payroll software? Let E-Payoffice take the stress out of your payroll.
From set up to ongoing management, our payroll software and outsourced payroll services will ensure your payments, calculations, and reporting are right the first time, every time.
Contact us today for a FREE consultation. Of course, there’s no obligation.