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Simulate savings from process automation.
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Yes. Use it for quick validations before final payroll processing.
Automation changes the shape of your workforce — not just its size. Before deploying any automated process, smart organisations model the full impact: which roles are displaced, what the payroll saving looks like net of implementation and retraining cost, and how long the investment takes to break even. This guide explains how to build that model and use the simulator to validate your business case.
The core of any automation business case is a clear ROI calculation that compares the annual cost of the automated solution against the annual labour cost it displaces, accounting for one-time implementation and ongoing maintenance costs.
Annual Labour Saving = Displaced FTEs × Average Annual Cost Per Employee
Example: 4 FTEs × $52,000 = $208,000 annual saving
Net Annual Benefit = Annual Labour Saving − Annual Automation Cost
Example: $208,000 − $45,000 = $163,000 net annual benefit
Payback Period (months) = Implementation Cost ÷ (Net Annual Benefit ÷ 12)
Example: $120,000 ÷ ($163,000 ÷ 12) = $120,000 ÷ $13,583 = 8.8 months
Automation rarely displaces entire roles — it more commonly displaces a proportion of a role's tasks, reducing the FTE requirement without eliminating a position entirely. Use displacement rate modelling to calculate the true headcount impact:
Displaced FTEs = Current Headcount × Task Automation % × Role Displacement Factor
Example: 10 staff × 60% automation × 0.75 factor = 4.5 FTEs displaced
| Automation Scope | Typical Displacement Rate | Headcount Outcome |
|---|---|---|
| Partial task automation (RPA, macros) | 20–40% | Reduced FTE count, redeployed capacity |
| Process automation (full workflow) | 40–70% | Significant role consolidation |
| End-to-end function automation | 70–90% | Role elimination with residual oversight headcount |
A complete automation ROI model must include retraining costs for displaced employees who are being redeployed rather than made redundant. Ignoring retraining systematically overstates the net saving:
Enter your current headcount, automation scope, and costs in the simulator above to see your net payroll saving and payback period.
Not always. In many organisations, automation absorbs growth that would otherwise have required additional hiring — so headcount stays flat while output increases. This "headcount avoidance" model is equally valid and often easier to implement without triggering redundancy processes. The simulator models both displacement and avoidance scenarios.
Use the fully-loaded cost of an employee, not just base salary. This includes employer social contributions, benefits, pension, equipment, office space allocation, and HR overhead — typically 1.2–1.4× the base salary. Using base salary alone will significantly overstate your payback speed.
Annual maintenance is typically 15–25% of the initial implementation cost for software-based automation and 10–20% for hardware. Include this as an annual recurring cost in your net benefit calculation. Also budget for periodic upgrade cycles every 3–5 years that may require additional implementation spend.
High-volume, rule-based, data-intensive functions consistently deliver the fastest payback: payroll processing, invoice matching, data entry, report generation, and compliance checking. Functions requiring judgment, human empathy, or complex problem-solving have lower automation rates and longer payback periods.
Disclaimer: This calculator is for informational purposes only and does not constitute legal or financial advice. We do not guarantee the accuracy or completeness of the results. Please consult a qualified professional for advice specific to your situation.