Compliance is crucial to effective workforce management, so it’s no surprise that payroll and workforce compliance are a growing concern for many employers.
And Australia does not make it easy, says Renee Roussety, group chief operating officer at workplace compliance solutions firm Citation Group.
“Most businesses aim to be compliant, and it’s key to remember that. But payroll and workforce management are incredibly difficult,” Roussety says.
There are numerous government bodies, regulations and requirements for employers to navigate. Interpreting Awards can be complicated, and revenue and margins are quickly impacted if there is just one element out of place.
Navigating payroll complexity
“Workforce management is crucial to making money. It is so closely tied to labour costs, and small impacts can have downstream effects,” she points out.
For franchisors, there is also a very real concern about liability for franchisee payroll errors.
Young and transitory workers power many industries, including QSR, health, aged care and construction. Franchisees are faced with selecting the right Award, the correct rate for the job responsibilities, validating the employee’s age where relevant to the Award, and verifying visa status.
“Employers are responsible for checking these details and converting them into practicalities. If you roster someone who is on a visa allowing them to work only 20 hours, how do you know you’ve got it right? How do you know what’s required of you?” Roussety asks.
“It is borderline impossible to pay an employee correctly if they are not properly onboarded.”
A streamlined approach is crucial
Without a cohesive approach, employers risk receiving pockets of information that leave gaps in understanding.
Having the right tools and systems in place is a good starting point. Many franchisors are rolling out programs across their networks with preset configurations that reduce decision-making and make the platform easy for franchisees to implement.
A rostering tool can improve labour cost management. For instance, access to employee and payroll data can inform decision-making, allowing employers to see live labour costs, allowances and overtime worked, and align rosters with sales forecasts.
The challenge for employers can be shifting from a legacy system of multiple, disconnected platforms to a more streamlined solution. Many small businesses lack the internal resources to build and manage comprehensive compliance frameworks themselves.
“SMEs have better things to do, they are good at what they do. For them, the question is ‘when do I find the time to do this’? But if they don’t find time to make the shift now, it will ultimately take more time later, and their issues will be forced,” Roussety says.
Roussety leads operations across Citation Group’s workplace compliance solutions, helping businesses of all sizes combine technology, expertise and streamlined processes to manage their workforce more effectively. designing smart systems that empower businesses of all sizes to grow efficiently. She played a key role in scaling Citation’s foundU platform into one of Australia’s leading workforce management and payroll platforms.
Technology alone is not enough
The right technology is just the start. However, while a streamlined platform with onboarding, rostering and payroll built in delivers efficiencies and reduces the opportunity for errors, there is more than just great technology at play here, she says.
Interpreting workforce rules is an important part of the process.
“You can have the technology to deal with this, but you might not have the right advice. The solution is often not only the technology, which doesn’t give you many guarantees. It’s about technology backed up by service,” Roussety says.
For an employer, whether a franchisor or a franchisee, asking the right questions of a provider is the first step to finding the right platform, she suggests.
Finding the right provider
A useful place to begin is by asking ‘Is there end-to-end capability? How often is the platform updated? What drives the innovation?’. These types of questions can open up valuable conversations and provide useful guidance throughout the assessment process.
“It should be compliance first, innovation second. Employers need to know a provider is building technology to the latest legislation. If the right software is not built, how do you ensure compliance? We’ve seen it with small businesses and Payday Super, ” she says.
A business should expect a new provider to go through a compliance and efficiency health check, Roussety advises.
“If you’re a small business, how do you know what’s a reasonable process? It’s important to understand the expertise the team offers, and the service levels. Is there a network of experts to tell you not just what to do, but how to do it? Once the platform is implemented, how will you stay across any changes to your obligations?”
Citation Group has a proactive approach to compliance, keeping clients informed about changes to their obligations and how to implement them as they arise.
“We always dedicate a large part of our road map to compliance. We like to get in front of this. We don’t mandate a single solution for clients; it might apply to some, but not others.”
The compliance solution has other benefits
To make payroll and workforce compliance easier and more effective, employers should look for a solution that can be tailored to the needs of the business, provide ongoing support, and help interpret regulatory requirements.
Improved compliance is not the only benefit though. The right platform for payroll and workforce management can boost staff retention.
“If it’s easy to start work, to undertake training, to get the shifts they want and get paid accurately and on time, employees have a positive experience of a business,” Roussety points out.
“Staffing in Australia is a huge challenge, from HR to compliance. Why not minimise the risk and make it as easy for your business as you can?” she says.
