With Australia’s business environment growing ever more competitive, and margins getting leaner by the year, it is imperative that business owners and managers take control of every element of their business and drive the greatest possible ROI from each dollar they spend.
As the biggest single expense for most businesses, wages control needs to be a key area of focus for driving profit margin and efficiency, and I don’t mean by letting staff go! Every week, I talk to businesses who are spending hundreds of thousands of dollars a year more than they need to on payroll, simply because their systems and processes aren’t good enough!
The reason for poor systems is usually a simple case of organic growth. A business which started with 6 people, has grown to 50 or 100, and the processes around managing those staff have stayed the same. This is a recipe for disaster because, while a 10 or 20% variance in payroll costs for 6 people isn’t much, the costs for 100 can be astronomical!
Let’s take a quick look at 3 Signs that Your Time and Attendance needs Attention!
You’re Using Paper
So I know that a lot of us just love to write things down and not deal with computers for every part of our life, but Wages is WAY too important for that. Rosters and timesheets that are paper based are prone to human error and require too many people to physically handle them to be efficient.
Get your Rosters and Timesheets in electronic form and you’ll be a mile ahead!
Running Payroll Takes Days
Ok, so you hired a smart person to do an important job, and as it stands, they’re currently spending a couple of days (or more) each pay period manually entering data into your payroll system, chasing people for incomplete timesheets, checking timehseets that don’t match rosters and getting supervisors to sign off!
This kind of thing is a personal pet peeve of mine! You’ve hired a smart person, don’t make them do a dumb job! If your payroll processing takes more than half a day, chances are you’re doing it wrong!
Your Budgeted and Actuals Never Match
Ok, so I know that the world is analog, and that reality almost never matches our plans! If this is consistently happening in your payroll however, then something has to change! To put it simply, if your budgeted roster, and your submitted timesheets aren’t almost identical to each other without an excellent reason, it’s a sign that something is wrong. Overtime, by the way, ISN’T an excellent reason for a variance!
Do any of these apply to you?
If any of these symptoms of Payroll overspend apply to you, don’t stress! You now know that there’s a good chance that you’re spending more than you need to on your wages and with a good system and some changes to the way you work, you can save your business a fortune!
To book an appointment with one of our consultants today call 1300 420 026, or email firstname.lastname@example.org.