Common Triggers for HR and Payroll Transformation
I’m often working with two types of organisations: those reacting to the impending sunsetting of their payroll or HR system, and those that have reached a point in their growth where the system customisations and workarounds they have in place have hit their limit. Occasionally, I work with a third type of organisation, those reviewing their HR and payroll capabilities as part of a broader whole-of-systems strategy, where these areas have been identified as having the greatest potential for benefit realisation.
In all cases, the conversation usually starts with a specific need, but quickly evolves into a broader assessment of what’s possible. That’s where understanding the full technology landscape comes in: HRIS, HCM, WFM, Payroll, LMS each system serves a different role, and together, they enable more strategic workforce outcomes.
HRIS (Human Resources Information System) is often the core platform: managing employee data, compliance, org structure, and foundational HR processes. HCM (Human Capital Management) builds on that with strategic features like performance, learning, and workforce planning. WFM (Workforce Management) covers time and attendance, rostering, and workforce optimisation, while LMS (Learning Management System) delivers training, onboarding, and development. Payroll solutions, of course, ensure employees are paid accurately and on time, often integrating with WFM and HRIS.
Cost Reduction Opportunities in HR and Payroll
Whatever the drivers, in working with organisations to map out their current state and future state HR and payroll processes, it becomes quickly obvious where there are administrative efficiencies to be realised by reducing manual touchpoints. This is common across all clients. There will be less time spent entering data, correcting data, and formatting and sending data.
In the HR function, this is often a reduction in the admin tasks associated with recruitment and onboarding, which in turn translates into improved time to fill or time to hire. In the payroll function, a reduction in payroll processing time is often the key cost reduction benefit.
Another common cost-related benefit is a reduction in system licensing and support costs through the rationalisation of multiple point solutions currently in place.
Workforce Productivity Gains Through Better Systems
Productivity benefits are more variable depending on an organisation’s nature and may require specialised workforce management solutions to realise. Benefits in this area are high impact where there is demand-driven dynamic rostering, such as in healthcare and manufacturing. Mapping out current and future state rostering or project scheduling will quickly identify improvement opportunities.
Workforce scheduling depends on accurate demand data being gathered upstream and efficiently transferred into the WFM solution. Depending on your organisation, productivity-related benefits might be measured as an improved utilisation rate, increased capacity, or reduced cost of absenteeism or overtime.
Moving from Admin to Strategic HR with HRIS and HCM
Modern HRIS and HCM systems can enable organisations to shift from transactional HR to more strategic workforce management. I see a lot of people’s effort consumed just meeting day-to-day admin needs, with limited capacity for strategic or tactical activities.
It’s often the inability to report quality data in a timely fashion, or the lack of well-defined master data, that blocks automation, analytics, and more informed decision-making.
Mapping current and future state processes can help define proxy indicators of strategic uplift, like reduced time to produce reports, lower admin-to-strategy ratios, faster decision-making, improved data quality, and higher self-service adoption.
Managing Risk and Compliance Through Better Governance
One often overlooked benefit of modern HR and payroll systems is compliance risk mitigation. These platforms improve how employee data is stored, accessed, transmitted, and retained, helping meet obligations under the Privacy Act, Fair Work Act, and WHS laws.
That said, cloud-based or outsourced solutions can introduce additional compliance obligations, such as managing cross-border data. I’ve worked with organisations ranging from those with paper files in unlocked cabinets to those still catching up on digital record retention policies.
Deep dives into processes don’t quantify risk directly, but they help surface how better systems and governance can close gaps, and where proxy metrics like payroll accuracy can signal progress. This is especially true where complex awards, EBAs, or highly dynamic rostering are involved. In these cases, WFM accuracy and upstream time and attendance data are critical to ensuring accurate payroll and risk mitigation.
Assessing What’s Possible for Your Organisation
There’s no doubt there are benefits to implementing a modern HRIS, HCM, payroll, or WFM system, but understanding what’s realistic and valuable for your organisation depends on analysing where you are now and where you need to be. Process mapping and future state modelling help reveal the size and shape of the opportunity, and what else might need to change to realise it.
Next Steps
If your organisation is reconsidering its HR, payroll, or workforce management systems, or facing pressure from system sunsetting or compliance risk, we can help you unpack the real opportunity.
- Learn more about our approach to Business Process Improvement and future state mapping
- Explore our software solution guides for HCM, Payroll, LMS, and WFM
- Use the Software Selection Tool to compare vendors based on your organisation’s needs
- Or book a discovery call to speak with one of our senior advisors