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  • Writer's pictureMartin Hesse

The Pivotal Role of Payroll in Payroll Related Vendor Selection

Choosing the right software vendors is a pivotal process that influences the overall success of a company. Often, businesses meticulously analyse factors like product quality, cost, and reliability during the selection process, but in the case of payroll related vendor selection, the payroll team may not be consulted. 

This article aims to shed light on why it is imperative for Australian and New Zealand organisations to include the payroll team in their payroll related vendor selection process and how their input can make all the difference.

The vendor selection process  

The process of selecting a vendor is a multifaceted journey that significantly impacts a company's efficiency and bottom line. From identifying potential vendors to negotiating contracts, each step plays a vital role in shaping the business landscape. The consequences of a misguided choice can be severe, affecting not only the company's financial health but also its reputation. 

Each organisation will take its own approach to vendor selection, and in some cases bring on external expertise to guide the project and make the organisation aware of their choices in the market. At Rosterspace we are thrilled when payroll teams are included in vendor selection processes, but sadly it is often not the case. 


Understanding the importance of payroll in business operations  

In the Australian and New Zealand business landscapes, where workforce regulations and compliance are stringent, an efficient payroll system is not just a luxury, but a necessity. This overall solution can be comprised of multiple systems, with each being of varying relevance to the organisation depending on their industry, size, and the work they undertake. If an ineffectual system is chosen, it can put a large strain on the payroll team to ensure payroll compliance, which can have negative impacts on the team and the greater business, and usher in a higher level of risk to the business. 

The following points outline the benefits of including the payroll team in payroll related vendor selection processes. 

1) Interrogating vendors during demos 

During vendor demonstrations, the payroll representative possesses the expertise to interrogate vendors more constructively. Their in-depth knowledge of payroll processes enables them to ask targeted questions, ensuring that the selected vendor's systems align seamlessly with the company's payroll requirements. 

Red Flag: If you ask the vendor demoing if having someone from Payroll present would be good and they say 'No'. 

2) Identifying system weaknesses and improvement areas 

The payroll team can provide invaluable insights into challenges with the current system and highlight areas that need improvement. Their hands-on experience allows them to pinpoint specific pain points, ensuring that the new vendor addresses existing challenges and enhances overall efficiency. They can outline specific real-world scenarios and ask how any new system would handle the situation. 

3) Leveraging networks for personal experiences 

With deep networks within the payroll industry, payroll teams can tap into the experiences of their peers. Constructive word-of-mouth feedback from other payroll professionals offers a wealth of information about specific systems, implementation processes and timelines. This enables the decision-making process to be influenced by real-world experiences.  

Furthermore, a vendor who is confident in their system will be happy to provide referrals from existing customers. If discussing the vendor with an existing customer, ask to speak to someone in their payroll team. 

Tip: Ask the vendor's references what they wish they had asked during vendor selection process

At Rosterspace, we have fostered deep and positive relationships with the payroll teams who use our product and happily provide references to prospective customers. 

4) Enabling long-term success   

Including payroll in the vendor selection process for software products they’ll be using on a daily basis will help the organisation choose the most reliable system for their needs. A reliable payroll system can streamline business processes, reducing the administrative burden on the HR and finance departments. This efficiency not only saves time and resources, but also allows these departments to focus on strategic initiatives that contribute to the company's growth. 

Additionally, a proficient payroll system often results in long-term cost savings. By avoiding errors, fines, and legal disputes associated with non-compliance, businesses can redirect funds towards investments that drive innovation and competitiveness in the market. 


5) Success and doing your DD’s 

To successfully integrate payroll into the vendor selection process, businesses must adopt best practices that align with their specific needs. Communication between HR, Finance, Procurement, and the Payroll team is paramount. Establishing a collaborative approach ensures that all aspects of payroll, from compliance to employee satisfaction, are adequately addressed. 

During the evaluation process, businesses should dig into a vendor’s track record in the Australian and New Zealand marketplace. This includes assessing the amount of time they have spent in the market, their ability to adapt to changing regulations, scalability, and the implementation of technology that enhances accuracy and efficiency. Done correctly, this vendor selection process should have an outcome that will support the organisation well into the future. 

Rosterspace is an Australian workforce management software made for advance award interpretation and complex rostering needs. To find out more head to 


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