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How to cut costs in your payroll department

Payroll automation and payroll outsourcing

Processing pay is an important exercise albeit an expensive one.  However it doesn’t mean that it has to be though. expensive.

How much is it costing you for payroll?

To cut costs it’s important to know how much they are in the first instance! The best way is to apportion it down to a per payslip cost. Cost per payslip can help you easily compare the cost while creating a metric that can be tracked over time.

Calculating the cost

First let’s gather your total cost for processing pay for all your staff. You need to incorporate the following costs.

Salary costs
• payroll staff salaries and wages including superannuation

Systems and services
• any applications used for payroll, time and attendance and employee self service

• consulting and legal costs
• education and training costs
• memberships or associations
• travel

To calculate the cost find the above costs, total them up then divide by the number of payslips processed in one pay cycle. This will give you the average cost per pay slip.

The Hidden Costs

Keep in mind that without payroll automation it can be very easy for payroll staff to make mistakes. Some time they can go unnoticed. Mistakes can be extremely costly for the business – which typically aren’t even accounted for- especially the time taken to fix such such mistakes.


  • Re-works due to errors
  • Penalties
  • Over payments in tax
  • Over payments in pay


Updates in legislation can also create hidden costs and unnecessary payments. To compensate for this payroll staff are required to maintain their qualifications as well as complete ongoing training. Training and additional education- once again adds another layer of expenses.

Cutting Costs

Cutting costs comes down to three core pillars of any business; process, people and systems. Making sure each one is running at optimal efficiency is obviously key to keeping your costs low, however, much harder than said.

Streamline your process, people and systems

Continuous improvements can often be overlooked within the payroll department. It’s just deemed a necessary cost- after all, everyone needs to be paid right?

But making small and incremental changes to streamline processes within payroll can exude large dividends.

Getting tools streamlined, creating templates, and reducing wastage is just as important within payroll as with any other department. This helps the ‘people’ within the payroll do better jobs. Which means less reworks and more time to focus on the right tasks.


More and more Australian businesses are opting for outsourcing their payroll functions. This removes the headaches altogether, but you also lose control, data, and vital information that can be otherwise used to improve not just payroll but other areas of your business. Insights into overtimes, hours worked, leave fluctuations and demand, and data coming in from time sheets, can help you much more operationally.

However on the pro side, outsourcing can exude substantial cost savings to your business. It removes costs such as salaries, training, education, as well as removing the need to constantly keep up-to date with legislation and tax changes.

Prodoreda can help you find the right payroll provider at no cost. Speak to one of our friendly advisors today.

Automation Software

With an explosion in cloud services recently, there are now several options to really streamline your systems, cut operational costs, and focus on your core business. Cloud solutions bring several advantages. This includes not having to worry about managing different tools, templates, and systems. Payroll automation software is no exception to this. You can read more about the benefits to automating your payroll here. If you want to keep control over your payroll the using automation solutions is definitely the way to go.

Prodoreda will help you find the right automation solution. Our software specialists help you to determine what you need then find the right solutions for you. Speak to us today.



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Top five reasons why you need payroll automation

Payroll automation software helps reduce costs and streaamline your business

Some of the world’s top performing organisations are investing in best practice and lean processes. Not only does this provide lower operational costs, it provides key insights, intelligence and reduced risk. Anyone in payroll knows that compliance – or keeping up to date with it- can be a huge pain point. Payroll automation severely reduces this pain point and makes compliance much easier to manage.

Payroll automation costs less

The more manual the process, the more hands you need to throw at it. Payroll staff is expensive. Salaries can range on average from $60,000 pa for payroll officer to $120,000 for senior and manager roles. The cost actually is much higher when you consider the total cost of hiring and retaining payroll staff:

  • hiring (recruiting) costs
  • training staff
  • stationery and IT
  • memberships to associations

So have you considered the average cost you are paying to process per payslip?

$202.41 per pay slip*

*average cost per pay slip for small organisation with less than 50 employees◊

As the organisation gets bigger the costs decrease at an accelerated rate. Top performing organisations however are able to cut their costs per pay slip by well over 50% of averages.

Mid size organisations paid $15.06 on average in 2016. However the top performer in this category only paid $5.08. Where do you fit? top performing? or average?

Cut Down Costs

Time is money, and payroll automation software definitely helps reduce the time it takes to process payslips and related activities.

Automation can also help cut down on printing costs, such as pay slips, which employees can check online instead.

You can more easily add new employees and make salary adjustments to records when an employee quits or is terminated. If tax rates change, your tax tables can also be automatically updated in a computer-based system.

cut-costs using payroll automation software

Reduce errors- pay correctly

Automating payroll has a major benefit that it ensures accurate payment to employees. Paying inline with awards and overtime, whilst considering employee benefits and leave, can all be automated. You can reduce errors further by integrating payroll software with other applications such as HR, ERP or accounting systems.

Pay your taxes right

Reckon it’s important to pay your taxes correctly? we do too. With ongoing changes to tax legislation it can be very difficult for businesses, even with payroll staff, to keep up to date with. However, with tax with-holding automated through payroll automation software, businesses can avoid non-compliance and potential large penalties from the tax man.

Streamlined Processing

Running a lean mean smooth machine?

Payroll automation can cut down on the process of running payroll, data gathering, information processing, disbursement, and reporting.

The right payroll software can easily integrate into other business systems such as HR  and accounting software. This allows you to gather key insights from pay or employee data that can be used to further streamline other business processes- giving you the domino’s effect.

Payroll often gets neglected come time for Kaizen (ahem, continuous improvement!). This is often an overlooked function for such initiatives. However even simple changes and alignment to legislation can mean savings of 1000’s to hundreds of thousands of dollars. This is even more true if there are errors in your payroll process.

Insure Compliance

Hmm, we’re guessing this might be another important one to keeping your organisation up and running?

Australian taxation law is constantly changing, tax margins and bands are always moving, and legislation is becoming stricter. Although this may be good for businesses and employees, it can present challenges for organisations as they need to constantly remain up-to date with such changes. They also need to provide ongoing training for payroll staff. Expensive!

According to the Australian Payroll Association:


of employers have no external advisory regarding payroll◊. Do you know what that means? it means these employers are taking unnecessary compliance risk .

Not only would a company be liable to fixing any error they make, they may also incur penalties for failure in compliance. This makes it critical for businesses to look at payroll automation or pay-roll outsourcing.

◊ Data based on Australian Payroll Association 2016 Payroll Benchmarking Study.



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Five Benefits to Digital Document Management

5 Benefits to Digital Document Management Australia

Digital Document Management is no longer an option. With an ever changing business landscape, a landscape that is now in constant rapid shift, business process digitisation has become extremely important. In fact it is now critical to building and maintaining an efficient organisation.

If you haven’t invested in a decent digital document management software solution within your business then here are five things your company is missing out on.

Most organisations think they can get away with manual paper based processes ‘well because it seems to be working just fine’. But it’s not. The realisation just isn’t there- that it is adding inefficiencies, costs, and wastage.

Businesses are incurring large hard and soft costs, as well as massive opportunity costs by not implementing modern document and workflow management solutions.

So let’s take a look at five key benefits your company can obtain with process digitisation systems in place. Otherwise read your introductory guide to getting started with document management software.

DMS Enhances Efficiency

By putting in place digital workflows organisations can shed significant time for throughput. Where tasks are manually performed and tracked using a hybrid of paper and software based processes, they can instead be automated using document or workflow management systems. Not only do you reduce the time to process a task, you also negate opportunities for human errors and omissions, thus adding to the overall efficiency.

Tracking tasks or documentation also becomes myriad times more efficient. Use of features such as workflows, simplified interfaces and smarter electronic searches all add up to save time for your staff. No more flicking through archive boxes or asking your colleague down the hall “where you at with that task?”

Most digital document management solutions also now offer a combination of cloud and web based access. This provides instant access to documents from anywhere around the globe as well as enhancing your ability to collaborate with stakeholders.

Getting started on your journey to digital processes in itself is beneficial. This in itself raises opportunities for standardisation as once you start to discover your current state, you will then naturally aim to move to a much more standardised future state.

Intuitive and user friendly interfaces of most document management systems makes it very convenient for staff to perform their duties, removing a lot of physical labour involved in producing and using paper or working with paper based processes.

Reduced staff training times

Ease of knowledge transfer

Reduction in manual work

Reduction in human error

Reduce Paper

Paper it self represents a significant cost to your business. Having paper just sitting there is a cost to your business. From sourcing it, to using it, then handling it, then transporting it or just storing it. Each step is a cost to your business. How?

  1. Space- it takes up space; from when it stored as stationary supplies to once printed, documents take up office space or storage space
  2. Wastage– especially if companies do not use any type of ‘swipe to release’ technology. Documents are printed, and left on printers, forgotten and never to be picked up, except by the cleaners. Or documents that are printed, and then never read.
  3. Ink and consumables– think of all that ink you spend your money on- and it’s not cheap, add to it printer related servicing, consumable such as stapling, binding or annotating
  4. Environmental costs – paper creates a huge carbon foot print.
  5. Handling– at every step of the life of a paper document there is a handling cost. From it being printed, then handled/used, then stored. Maybe it is then put into archive box, then transported over to a warehouse where it is piled on top of the other thousands of archive boxes.

So by investing in solid document management or workflow tools, you do save on paper therefore save on the above costs.

Reduce space required

Reduce wastage

Reduce environmental costs

Reduce ink and consumables


Digital processes allow you to change and adapt more easily than manual processes. In a climate where the only constant is change, it is critical for organisations to be more agile. Businesses must be able to quickly adapt to customer demands, technology, and other internal or external factors. Good digital document management solutions should be modular. While only providing what your business really needs currently, they should allow flexibility for your business to tailor the solution as you grow.




More importantly though is the question of security. With changes in business dynamics, there are also changes in legislation and security requirements. Depending on where you are located, don't be surprised that document retention is or will be made mandatory, including even notes you made on a memo pad to email communication. Have you thought how you could handle that?

Any reliable digital document management system should already cater for secure document access. Meaning that your staff should be able to access documents from anywhere securely, and you should be able to restrict document access to specific users. But what if you need to restrict certain content from stakeholders and not the entire document?

Increased Customer Satisfaction

Who doesn’t want faster order-to-delivery times right?

The net effect of the above benefits is of course increased customer satisfaction. With proper applications in place that allow for automated workflows the benefits trickle down to your customers. For example reduction in lead times, reduction in cash to order, or minimising order to delivery times is common.

As an example let’s take a look at a case study for Hylands OnBase Enterprise Content Management Solution which allowed for profound benefits to Linfox NZ.

The customer

Linfox NZ is part of the Linfox Group which has more than 22,000 people working in 10 countries and has four operating divisions – one of which is Linfox Logistics, whose IT division provides a highly specialised range of management services to manage customers’ supply chain activities.

The business problem

Linfox NZ was facing several challenges relating to their Proof of Delivery. Manual and paper based process was causing increased customer time to query, multipication of paper hard copies, lack of flexibility,

The solution

OnBase allowed Linfox to scan and automatically match signed proof of delivery documents with their corresponding original consignment notes/manifest documents. Customers can now initiate their own reconciliations utilising the Linfox customer portal where all consignment notes are automatically uploaded. The solution allows customer to log in and access their consignment documents remotely, print them off, and prepare for their Linfox driver’s arrival. Using workflow management consignment labelling also became remotely capable, allowing customer to print their own labels remotely.


The key benefit to Linfox customers is the reduction in lead time to query invoices and deliveries. OnBase Content Management has helped increased customer satisfaction through reduction in retrieval times, enhancing customers ability to print own POD and consignment labels, and allowing Linfox itself to provide a more proactive customer service.

Required document or data can be accessed immediately by both customer and Linfox, meaning a large reduction in physical paper, misplaced documents, and storage requirements.

Source: Hyland’s OnBase

Cost Savings with Digital Document Management

Cost savings through a digital document management, well this should really be a no brainer. The initial investment is easily offset through the above benefits, some which cannot be measured and cannot be assigned a numerical number. Depending on your business strategy, requirements and size, digitising your paper and processes provides a strong return on investment. The benefits outline above all exude cost savings and each one adds up.

As an example, Office Gemini’s Dokmee Document Management Solution helped Corporate Cost Control (CCC), a large global unemployment cost management solutions provider itself save extensively in operational costs.

After a successful installation process and training on the Dokmee software, Corporate Cost Control and its employees were able to realize the following results:

• Doubled business in the past year with Dokmee software.

• Cut in half the cost of labor and productivity.

• Alleviated cost of warehouse storage and deduced the risk of loosing paper files around the office.

Source: Office Gemini

With a huge array of vendors and Digital Document Management Solutions out there, it can be very confusing to select the right one. We make it easy for you:

As much as all the above is true, it is not as simple as just putting in place a document management system that will just digitise your paper documentations and hope for the best. It is imperative that a business strategy and directive is in place that is led with a top-down approach. It is also imperative that the solution contains the right features that will make it work well within your organisation. At the same time integration is critical with existing application and systems to allow for greater flexibility and efficiencies.

Missing sound document management systems in your organisation or just got one recently? Share your thoughts in the below comments or read the guide to getting started with document management software.