From runt to leader: Transforming payroll into a value-added strategic business asset

Look, we get it. Payroll can feel like the undernourished runt of the organisational litter, so it’s little wonder that it's usually looked at through the lens of its most rudimentary functions — money goes in, money goes out, and people get paid.

It’s that sort of “if it ain’t broke don’t fix it” mentality that’s leaving a lot of potential on the table. And the fact is, whether you want to look at it in terms of profit potential or human potential, both are true — sticking with the ways of the 1990s is only holding everything back.    

With a pretty simple but fundamental shift in thinking, payroll doesn’t have to be just a back-office necessity — it can be a true front-runner in your business strategy. Picture seamless processes, happier employees, and insights that propel your business forward. Sounds like a lot more fun for everyone right?

In this article, we’re going to find out how to do just that by diving into the concept of value-added payroll systems. We’ll look at how enhancing the employee experience, optimising time and attendance management, and leveraging data analytics can transform your payroll from the runt of the litter into a leader of the pack.

So, what exactly is a value-added payroll system? It really comes down to payroll not being just about cutting paychecks. A value-added payroll system takes care of all the usual stuff but goes way beyond by adding layers of efficiency and strategic insights.

These systems are all about enhancing accuracy, slashing administrative headaches, and giving you data that can drive real business growth. They integrate smoothly with other key business systems like HR and finance, offer real-time analytics, and keep you compliant with ever-changing labour laws. Plus, with features like self-service portals and automated calculations, employees feel more empowered, and HR and payroll can focus on the bigger picture.

In short, a value-added payroll system transforms payroll from a back-office necessity into a valued part of the business that offers genuine (and appreciated) strategic insight.

Let’s face it — your average payroll system often leaves a lot to be desired. They’re cumbersome, time-consuming, and often frustrating for both employees and payroll specialists. But with the rise of employee portals, that’s all changing. Here’s how modern payroll employee portals empower employees and transform the workplace.

Real-time access and control

Employee portals give staff instant access to their payroll information. They can check payslips, update personal details, and manage leave requests — all from their smartphones or computers. This level of access isn’t just a handy feature — it really does put control back in the hands of employees, making them feel more involved and empowered.

Reducing the admin burden

Employee portals are a big deal for HR and payroll pros too. By letting employees manage their own information, teams spend less time on admin tasks and more time on genuinely strategic initiatives. This shift not only improves efficiency but also boosts job satisfaction for HR and payroll teams.

Boosting engagement and satisfaction

When employees have control over their own data, they’re more likely to be satisfied with their work environment. They trust the system more, knowing they have direct access to their information without jumping through arbitrary hoops. It just makes sense — this transparency helps foster a positive workplace culture and higher engagement levels.

Key statistics

In New Zealand, 92% of the population owns a smartphone, and around 2.5 million workers use these devices to manage various aspects of their personal lives so why not their work lives too? By implementing employee portals, businesses can tap into this widespread digital literacy to improve their payroll systems.

The bottom line

Employee portals are more than just convenience or bells and whistles — they’re really about transforming the employee experience. By giving employees control over their information and reducing the admin burden on HR and payroll, businesses can spend time working towards a more efficient, satisfying, and engaging workplace.

These days, handling time and attendance in payroll isn't just about clocking in at 9 and clocking out a 5. Let’s say an employee’s planned hours are 7 am to 3 pm. If they work two hours over, they earn 1.5 times their regular rate. If they work 2.5 hours over, they get double time. Work on a public holiday? That’s another set of allowances and entitlements.

Let’s really get into the weeds — if the employee works from 7 am to 7 pm, they might be entitled to a meal allowance. Work on a particular machine? They could get a Danger allowance. Step into a supervisory role? That’s a higher duties or supervisor allowance. 

For companies that job cost work based on specific tasks and locations, the complexity just multiplies with every new factor. We have all the love in the world for payroll specialists, but it’s easy to see how manual calculations can lead to errors getting out of hand.

Automated systems: The solution

• Accurate calculations with AIE: The Award Interpretation Engine (AIE) automates the calculation of these complex entitlements and allowances. It interprets awards and agreements to make sure that employees are paid correctly for every hour worked and every additional responsibility taken on.
• Compliance made easy: Keeping up with labour laws and regulations is crucial. AIE makes sure your payroll processes stay compliant, reducing the risk of fines and legal issues.
• Streamlined operations: With all the complex calculations taken care of, payroll can focus on more strategic tasks. This shift not only improves efficiency but also makes work much more satisfying for payroll pros.

Key statistics

Manual data entry has an error rate of 3.7%. For a company with 100 employees, this could mean nearly four errors per payroll. For a company with 500 employees, and weekly payrolls, it could mean up to 962 errors a year. That doesn’t sound like a bunch of fun, does it?

The bottom line

Automated time and attendance systems are nothing short of essential for a modern payroll setup. By reducing errors, ensuring compliance, and making shift planning much more efficient, these systems are a no-brainer to help create a smoother, more productive work environment.

Using data analytics in payroll might sound a bit daunting, but it's just about putting together data to uncover the stories behind the numbers. With modern payroll systems, it’s less about endless spreadsheets, and more about drawing a vivid picture that reveals the human elements that drive our organisations. And yes, the dashboards are pretty, but it’s the analytics that can really transform payroll into a strategic asset.

Understanding workforce dynamics

Think of payroll data as a map of your workforce. It shows how employees progress within your organisation  — who advances, who exits, and how everyone is compensated. These insights help nurture top talent and identify areas for improvement.

• Turnover analysis: Identify patterns in employee turnover to develop retention strategies
• Compensation insights: Understand how pay affects employee satisfaction and performance

Gaiging employee engagement

Data analytics give you accurate measurements of employee engagement. Regular surveys and check-ins give a clear picture of how your team is (really) feeling, helping you address issues before they escalate.

• Engagement metrics: Monitor engagement levels and identify key drivers
• Feedback mechanisms: Implement surveys to gauge sentiment and make adjustments.

Predicting future needs

Analytics offer insights into the realities of the labour market, showing available talent and industry trends. This helps anticipate the skills your team will need to stay competitive.

• Labour market trends: Track external trends to identify emerging skills
• Talent forecasting: Predict hiring requirements based on historical data and market analysis

Promoting Diversity, Equity, and Inclusion (DEI)

The data is not ashamed to highlight hidden biases, and pay equity analysis provides fair compensation across demographics.

• Bias detection: Identify and address biases in hiring and pay.
• Pay equity analysis: Ensure fair pay practices for all employees.

Linking actions to outcomes

Data analytics is also fantastic at connecting actions to business outcomes like sales and satisfaction, showing what’s working and where improvements are needed.

• Performance metrics: Track the impact of actions on business outcomes.
• Outcome analysis: Connect actions to key metrics like sales growth.

Uncovering real employee needs

You probably already have a sneaking suspicion that sometimes employees don’t understand their own needs. Analytics can compare stated preferences with actual behaviour, offering a clearer picture to design appreciated initiatives.

• Value assessment: Compare preferences with behaviour to design effective programs.
• Initiative impact: Measure success based on engagement and satisfaction.

The bottom line

By really leveraging data analytics, payroll can go from a routine task into a truly strategic asset. These tools offer valuable insights into workforce dynamics, engagement, and future needs, helping make informed decisions that drive performance. Don’t think about investing in advanced payroll analytics as just keeping up — it’s about pushing your business forward and adding genuine, tangible value to your operations.

Through our experience with hundreds of successful payroll transformations, we've learned a thing or two — but one thing that really sticks out? If you genuinely make the effort to treat payroll as a strategic driver, you’ll win big. Here’s what we’ve discovered about investing in your payroll system to do just that.

Embracing change

Change is a constant, but payroll environments often struggle to keep up with evolving contract conditions and regulations.

• Adaptability: Make sure your payroll system can smoothly adjust to new employment conditions and regulations.
• Regular Reviews: Regularly review your payroll processes to stay compliant and efficient.

Continuous training

You have to budget time for training — no ifs, buts, or maybes. Legislation changes, and systems evolve. Keeping your team up-to-date makes sure they handle these changes effectively.

• Budget for Training: Set aside funds for continuous payroll training. Regular updates keep your team prepared.
• Combat the Forgetting Curve: People forget most new information quickly. Regular training helps reinforce and retain knowledge.
• Payroll Manual: Create a detailed payroll manual covering all internal processes and system nuances. This also acts as a nice little business continuity tool and guarantees consistency.

Leveraging technology

Technology enhances compliance, accuracy, and efficiency. It’s not always about new systems — sometimes, it’s just about optimising what you have.

• System Integration: If your systems aren’t integrated, you’re likely duplicating efforts. Integrate your systems to streamline operations and reduce errors.
• Enhanced Reporting: Work with your vendor to improve reporting capabilities and reduce the data management burden.
• AI and Data Cleansing: Clean your data often, and use AI to boost accuracy and compliance.

Building strong vendor relationships

Your payroll vendor really is your best friend here. Setting up a strong, collaborative relationship will only make sure you get the most out of your system.

• Vendor Support: Choose a vendor offering strong support options, including phone, email, and chat.
• Ongoing Collaboration: Maintain regular communication with your vendor to stay updated on best practices and new features. It’s part of their job, so use them.
• Annual Investment: Make annual investments in your payroll system to improve data quality, output accuracy, training and overall system reliability.

The Bottom Line

From our experience, we’ve seen first-hand that strategic investment and effective risk mitigation in payroll systems lead to long-term success. By embracing change, continuously training your team, leveraging technology, and building strong vendor relationships, you can create a resilient and efficient payroll operation that actually supports your business goals.

Where to next with Jemini

So there you have it. By embracing modern payroll systems, you’re not just making life easier for HR and payroll — you’re transforming payroll from a back office bore into a strategic mastermind. From enhancing the employee experience and optimising time and attendance to leveraging data analytics and integrating systems, these changes bring efficiency, accuracy, and insights that can drive your business forward.

Ready to take the next step? Don’t let your payroll system hold you back. Get in touch for expert advice and assistance in transforming your payroll processes. Together, we can turn your payroll from the runt of the litter into the leader of the pack.