[Australia] 36% of payroll managers say underpayments scandals led to cultural change

In Australia, a recent survey has revealed that more than 1 in 3 payroll managers (36 per cent) believe the recent employee underpayment scandals – plus subsequent fines, warnings and legal action by Fair Work – led to cultural changes in their payroll, human resources and finance departments, Australian Payroll Association reports.

The figure came from a survey of more than 1100 payroll managers conducted by the Australian Payroll Association. The survey showed that 38 per cent of payroll managers say their organisation has changed some compliance processes or systems in relation to its own obligations to employee pay and entitlements. 

A further 17 per cent reportedly said that their organisation had made a commitment to implementing changes in 2020. Of greater concern was the fact that 46 per cent of payroll managers said their organisation had not made or committed to making any changes, in 2020.

According to the Australian Payroll Association, one in five payroll managers (20 per cent) said that senior management is now checking reports and other documents from the payroll department, to avoid any underpayment issues arising. In addition, 17 per cent said their organisation has instructed employees to report any discrepancies in their payslips and entitlements immediately. 

A mere 13 per cent of organisations implementing changes have reportedly arranged further training for payroll staff, while 10 per cent have outsourced to external payroll or HR experts.

The Australian Payroll Association also asked respondents about the areas of employee pay and entitlements they are particularly focussed on this year. The ‘bundy clock’ legislative changes to annualised salaries - in place from March 1 this year - was revealed to be a focus for just 15 per cent of payroll managers. The focus for 11 per cent will be on payroll or award interpreting technology, while eight per cent will focus on overtime.

Tracy Angwin - Australian Payroll Association CEO - said, “Again, it seems that payroll team training is being overlooked as an area of focus to combat employee underpayments – only 6 per cent of payroll departments reveal they will focus on training this year. The errors behind the scandals are often a result of inadequate training given to payroll managers. 

“The Australian Payroll Association’s 2019 Benchmarking Report reveals that the average payroll manager has just 2.6 days of training a year. Yet they are responsible for millions of dollars in payments and ensuring those payments meet the law. With employee payment legislation constantly changing, it is crucial for payroll managers to have the relevant qualifications and to keep updating their knowledge by attending training sessions regularly.”

Source: Australian Payroll Association

(Quote via original reporting)

In Australia, a recent survey has revealed that more than 1 in 3 payroll managers (36 per cent) believe the recent employee underpayment scandals – plus subsequent fines, warnings and legal action by Fair Work – led to cultural changes in their payroll, human resources and finance departments, Australian Payroll Association reports.

The figure came from a survey of more than 1100 payroll managers conducted by the Australian Payroll Association. The survey showed that 38 per cent of payroll managers say their organisation has changed some compliance processes or systems in relation to its own obligations to employee pay and entitlements. 

A further 17 per cent reportedly said that their organisation had made a commitment to implementing changes in 2020. Of greater concern was the fact that 46 per cent of payroll managers said their organisation had not made or committed to making any changes, in 2020.

According to the Australian Payroll Association, one in five payroll managers (20 per cent) said that senior management is now checking reports and other documents from the payroll department, to avoid any underpayment issues arising. In addition, 17 per cent said their organisation has instructed employees to report any discrepancies in their payslips and entitlements immediately. 

A mere 13 per cent of organisations implementing changes have reportedly arranged further training for payroll staff, while 10 per cent have outsourced to external payroll or HR experts.

The Australian Payroll Association also asked respondents about the areas of employee pay and entitlements they are particularly focussed on this year. The ‘bundy clock’ legislative changes to annualised salaries - in place from March 1 this year - was revealed to be a focus for just 15 per cent of payroll managers. The focus for 11 per cent will be on payroll or award interpreting technology, while eight per cent will focus on overtime.

Tracy Angwin - Australian Payroll Association CEO - said, “Again, it seems that payroll team training is being overlooked as an area of focus to combat employee underpayments – only 6 per cent of payroll departments reveal they will focus on training this year. The errors behind the scandals are often a result of inadequate training given to payroll managers. 

“The Australian Payroll Association’s 2019 Benchmarking Report reveals that the average payroll manager has just 2.6 days of training a year. Yet they are responsible for millions of dollars in payments and ensuring those payments meet the law. With employee payment legislation constantly changing, it is crucial for payroll managers to have the relevant qualifications and to keep updating their knowledge by attending training sessions regularly.”

Source: Australian Payroll Association

(Quote via original reporting)