More payroll staff prepared to walk: Report
SHARE THIS ARTICLE
Employee burnout and a lack of leadership are creating chaos in the payroll industry, with more staff preparing to leave their post in the next 12 months.
An extensive survey of 2,178 payroll professionals by the Australian Payroll Association found that 31.2 per cent of respondents plan to change jobs in the next 12 months.
Payroll professionals in large companies (over 500 employees) fare the worst, with 28 per cent saying they expect to quit in the next year. This was followed by 26 per cent of respondents who work in medium-sized companies (51-500 employees) and 19 per cent who work in small companies (under 50 employees).
The turnover is set to risk higher rates of non-compliance in employee payments across corporate Australia. In the financial year 2022, the Fair Work Ombudsman recovered more than $530 billion in unpaid wages and entitlements for nearly 400,000 employees — a figure three times higher than reported in FY 2021.
“One of the key challenges facing organisations today is the difficulty in recruiting and retaining payroll talent,” said Tracy Angwin, chief executive of the Australian Payroll Association.
“As the demand for skilled payroll professionals continues to increase, it has become imperative for organisations to not only attract but also retain the right talent.”
What’s driving departures in the payroll industry?
The survey highlighted a number of key reasons why more payroll professionals are willing to quit their jobs — the most common cited as increased burnout.
Two in five payroll professionals are suffering from burnout, with this most prevalent in large companies (46 per cent). Meanwhile, 35 per cent of payroll professionals in medium-sized companies are experiencing burnout, compared with 28 per cent of those who work in small companies.
When asked what factors contributed to their burnout, 48.5 per cent cited a lack of leadership support and understanding of payroll.
“Perhaps the most alarming thing we see is the trend of senior management not understanding the payroll structure required to ensure a well-governed, compliant and efficient payroll,” Ms Angwin said.
“The number of senior company executives quietly admitting to us that they have no idea what is going on in their company’s payroll function is astounding.
“With the increasing wage theft laws coming in and liabilities on executives and company directors, employers cannot just hope that their payroll people get it right, and without any oversight. We find errors in 100 per cent of our payroll audits.”
Further contributing to the feeling of burnout is a lack of payroll resources, cited by 39.8 per cent of respondents. Similarly, 38.7 per cent of respondents cited a lack of investment in the payroll function, and 36.2 per cent said unrealistic deadlines and expectations were increasing their level of burnout.
The survey also identified significantly increased workload levels among payroll professionals.
Fifty-six per cent of respondents said their workload had increased since the pandemic, with almost two-thirds of these (61 per cent) now working more than 40 hours a week.
Ms Angwin said increased work levels are not being adequately addressed by employers, who are failing to keep up with rising turnover rates.
“[We’ve seen] anecdotal evidence of employers not replacing people when they leave,” she said.
“In terms of how to retain payroll staff, we know that it’s not just about throwing money at them … It’s just as important, if not more, to make them feel supported and appreciated in the payroll function.”
When asked what was the most important in their search for a new role, 39.6 per cent of respondents cited efficient payroll technology and processes. Meanwhile, investment in learning and development was cited by 13.1 per cent of respondents.
To learn more about the research conducted by the Australian Payroll Association, access the full report here: https://austpayroll.ac-page.com/2023-payroll-survey-download.
To contact the Australian Payroll Association or book their services, you can visit their website at www.austpayroll.com.au or call them at 1300 729 455.
