Hiring great payroll professionals shouldn’t feel like rolling the dice — yet many organisations continue to make the same avoidable mistakes. Whether you’re scaling your payroll team or replacing a key staff member, it’s time to rethink how you attract and assess talent in this mission-critical function.
Here are the seven most common hiring mistakes when it comes to payroll recruitment — and what high-performing companies are doing instead.
1. Hiring for System Knowledge Instead of Payroll Expertise
Over 70% of businesses still prioritise candidates with experience using a specific payroll system (e.g. Chris21, SAP, or ADP). This is a mistake. Payroll systems can be learned relatively quickly by people who know payroll. What can’t be easily taught is a strong technical understanding of payroll legislation, compliance risk, and process design.
Consideration: Hire for functional knowledge and critical thinking. Payroll professionals who can interpret complex awards or tax legislation will always outperform those hired just for system familiarity.
2. Overlooking Cultural Alignment
Retention issues often stem from poor cultural fit. Even technically excellent hires will underperform or churn quickly if they don’t align with your company’s values, pace, or communication style.
Consideration: Make cultural alignment a key part of your hiring criteria. Include it in interview scorecards and use values-based interview questions.
3. Treating Payroll as a Back-Office Function
Payroll is no longer just about processing pay runs. It’s a trust-driven, service-oriented function that touches every employee in your business. Failing to screen for a customer service mindset is a critical gap.
Consideration: Look for professionals who are proactive, empathetic, and able to communicate clearly with stakeholders at all levels.
4. Not Offering a Clear Development Path
Top payroll professional is career focused. If candidates can’t visualise how they’ll grow with you, they’ll choose another offer.
Consideration: Present a clear development pathway during the interview process. Offer mentoring, learning budgets, or cross-functional project opportunities.
5. Failing to Promote Your Organisation
Candidates aren’t just evaluating the job — they’re evaluating your brand, culture, and leadership. If you can’t articulate why your organisation is a great place to work, you’re at a disadvantage.
Consideration: Equip your hiring managers with stories, proof points, and content that showcase your values, team, and vision.
6. Assuming Experience Equals Expertise
It’s common to rely on years of experience as a proxy for technical capability. But this often leads to overhiring or underdelivering.
Consideration: Use structured testing or scenario-based assessments to objectively measure a candidate’s knowledge of compliance, awards, and payroll legislation.
7. Not Demonstrating the Strategic Value of Payroll
High-performing candidates want to know their work is valued beyond the payroll team. If your interview process suggests payroll is isolated or under-recognised, they’ll look elsewhere.
Consideration: Highlight how payroll contributes to business performance, risk management, and employee experience. Involve senior stakeholders in the hiring process to reinforce this message.
Final Thought
Payroll professionals are the custodians of one of the most important relationships in business — the one between an employer and its people. Hiring well is not just about filling a role. It’s about securing trust, ensuring compliance, and strengthening your employee experience.
If you’re serious about getting payroll hiring right, start by avoiding the seven mistakes above — and you’ll dramatically increase your chances of attracting top-tier talent.
Need support with payroll recruitment, role design, or candidate testing?
Get in touch with our team today to discuss how we can help you secure the best payroll professional in the market.
