Managing payroll goes beyond issuing payslips; it’s a complex, compliance-driven, and time-consuming process for large organisations. The APA’s 2025 Payroll Survey from earlier this year outlines key industry challenges and suggests areas for process, technology, and compliance improvements.
For decades, companies have faced the challenges of costly, complex technology upgrades. Outsourcing technology platforms, especially in HR and Payroll, helps eliminate this disruption and lets organisations focus more on their people instead of managing technology.
Based on our experience in delivering strategic payroll services to a broad range of enterprise and government clients, we recognise these challenges and opportunities, and, in this blog, we examine how outsourcing this essential function to a company like Tambla Business Services (TBS) can deliver major advantages.
1. Escape outdated systems and manual workload
An alarming number of organisations still use fragmented, legacy payroll software that requires extensive manual data-entry or lacks integration with HR or finance systems. Nearly a third report data‑input errors, and over many are still reliant on outdated payroll technology platforms and disconnected systems (Australian Payroll Association).
Outsourcing payroll offers considerable cost advantages compared to time-intensive upgrade and replacement initiatives and facilitates the transition to a modern, integrated platform. Adopting an outsourcing strategy enables automation of routine processes, thereby reducing manual errors and mitigating the risk of costly compliance challenges. Service providers such as TBS maintain expertise with the latest technologies and offer access to contemporary features that are valued by today’s workforce.
2. Stay compliant amid regulatory upheaval
One certainty we have in Australia is that our payroll rules are continually evolving. The Criminal Wage Theft legislation came into force on 1 January 2025, making intentional underpayments a criminal offence. Minimum wages increased and super contributions on government funded parental leave both came into effect from 1 July 2025. Next year, Payday Super will require employers to contribute superannuation on each pay cycle rather than quarterly from 1 July 2026.
Outsourced payroll providers specialise in keeping pace with these changes and implementing them in a timely fashion – helping you avoid penalties, audit errors, and reputational risk while providing your employees the correct entitlements.
3. Bridge the skills shortage and reduce burnout or turnover
The APA survey shows that payroll teams face challenges due to a lack of resources or training, leading to burnout and compliance risks. Rather than trying to retain or acquire scarce or costly expertise in-house – especially given Australia’s payroll skills shortage (Ref: ADP) – outsourcing can provide instant access to teams of experienced and qualified specialists who stay up to date with payroll legislation and best practice.
As with other outsourcing providers, we consistently monitor our team’s skills and qualifications to maintain up-to-date standards and regulatory compliance, ensuring the highest quality advice and service for our clients.
4. Unlock strategic value through analytics and workforce insight
Many businesses continue to view payroll as a purely transactional function, and the APA survey found that 16 percent of the executives, that they surveyed, do not use payroll analytics. Taking a strategic approach to payroll is more important than ever – not just for compliance, but for strategic decision making.
Payroll outsourcing partners like TBS deliver dashboards and reports that reveal trends, compliance issues, balances, cost centres, and other key metrics. These insights support strategic workforce planning, cost management, forecasting, and financial planning.
5. Improve employee experience and talent retention
Payroll is not just a backend process — it is critical to trust and financial wellbeing among your workforce. The modern workforce expects faster, more flexible access to pay, customisable benefits, and digital-first tools (Ref: Ally Foster, News.com.au). Many employees hold more than one job, often managing several casual positions. They may prioritise flexible working conditions instead of traditional benefits, and show interest in real-time pay options and financial wellness resources.
Instead of adopting and managing additional software in-house, businesses can use outsourced payroll providers like TBS to implement solutions quickly with minimal disruption. The adoption of modern tools and applications that reflect changing employee preferences can greatly enhance workforce satisfaction and retention rates.
Outsourcing Payroll: A Smart Move
In summary, the APA’s 2025 survey concludes that payroll is no longer just an administrative function – it is strategic. But current friction – from compliance risk to manual processes, underinvestment in training, and fragmented or underperforming systems – means in-house payroll may be weighing organisations down.
By outsourcing payroll, businesses can:
- Embrace integrated, up‑to‑date technology instead of legacy systems.
- Stay compliant with fast‑changing legislation.
- Tap into specialist, certified expertise without hiring internally.
- Benefit from analytics‑driven insights for workforce strategy
- Enhance employee experience with a modern suite of apps and benefits.
For companies ready to navigate the payroll challenges of 2025 and beyond, outsourcing is not just a convenience—it may be a strategic advantage. According to data from the APA, businesses that invest in payroll modernisation, automation, analytics, and training may enhance compliance, reduce risk, and improve outcomes related to HR, finance, and employee wellbeing.
Is your payroll team under pressure? Outsourcing might be the upgrade your business needs. Talk to TBS today.
