Presented by ADP

Transform your business’s payroll management – Download the free ADP guide

 ·8 Jan 2025

As businesses in South Africa continue to grow and evolve, particularly those with fewer than 1,500 employees, they often find themselves in a challenging position.

Many have outgrown their small business payroll tools but may not yet have the budget or resources to invest in systems designed for larger enterprises.

This transitional phase can lead to significant payroll management challenges, which, if not addressed, can impact compliance, employee satisfaction, and overall operational efficiency.

A recent report by ADP, Potential of Payroll in 2025*, reveals that a surprising 80% of organisations in Africa experience payroll accuracy rates below 90%.

For mid-sized businesses striving to maintain employee trust and regulatory compliance, these statistics underscore the urgent need for effective payroll management systems that fit within their current capabilities.

Common payroll challenges for growing businesses

1. Data Inaccuracies (37%)*: Small errors in employee data can result in incorrect compensation, damaging morale and employee trust. Regular audits of employee information are essential to ensure accuracy.

2. Time Entry Errors (33%)*: Manual time entry is prone to mistakes, leading to discrepancies that can frustrate employees and create compliance issues. Transitioning to automated time-tracking solutions can significantly reduce these errors.

3. Lack of Automated Processes (33%)*: Many mid-sized firms still struggle with outdated payroll methods. Without the budget for enterprise-level solutions, businesses need to explore affordable automation tools that can simplify payroll processes and reduce administrative burdens.

Is your payroll keeping pace with these challenges? Discover the key to business efficiency

For those looking to delve deeper into effective payroll management strategies specifically catered to businesses with under 1,500 employees, ADP provides valuable insights and resources.

Download the free ADP payroll management guide

This guide explores the key signs that indicate it’s time to reassess your payroll operations. Readers will gain insights into the benefits of implementing comprehensive payroll solutions.

We discuss three significant changes that impact payroll management as a business transitions from small to mid-sized:

1. Major internal shifts and transformations.

2. International expansion.

3. Ongoing changes in legislation.

Learn how businesses can effectively manage each of these elements from a payroll perspective, addressing current payroll challenges while also preparing their systems for future opportunities.

Take Action Today – Optimise payroll processes and ensure timely, accurate compensation for your growing team.

Download the free ADP payroll management guide

* ADP, The potential of payroll: Global Survey 2025

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