The big
M
switch
Are you thinking about switching your payroll provider? Like most business owners, you are probably aware that it can be difficult and time-consuming. Val Silvey, payroll expert at Moorepay, explains some of the ways to make the transition easier
ore often than not there is an “if it’s not broken, don’t fix it” philosophy about payroll. But in reality, switching to a more modern payroll system is a necessary long-term investment and could really help drive your business forward.
An archaic payroll system can hinder a company in many ways, whereas a newer one can dramatically improve operational efficiency. Functionality such as web recruitment, online payslips, time and attendance monitoring and self-service is vital in the modern era in which we live and can really help cut out some of the administrative burdens that businesses have to deal with every day.
A business might decide to change payroll provider for other reasons too, such as dissatisfaction with the current level of service, an expired contract or perhaps to reduce costs.
Most business owners understand that the success of a company hinges on paying employees accurately and on time. That is why, when a company chooses to switch its payroll provider, it is crucial that the change does not affect any other operations.
Changing to a new provider is not always simple. Switching means putting all your information onto a new system – and that means providing it all to a new payroll provider in a specific format, which can be an arduous task which eats into company time. The transition can take several months with some providers, depending on the number of employees and complexity of your requirements.
How can you make it easier? The key to a smooth transition is great management, with clear objectives clearly outlined to those involved.
A good working relationship between the provider and the payroll department is vital as well as having adequate resources to deal with the changes as it is likely the extra workload will overstretch your payroll department. Following implementation, you need to do a ‘parallel run’ to check for inaccuracies before completing the switch.
A parallel run will check your old payroll system against your new one, highlighting any potential problems and giving you the chance to correct them before going live. During the run, you can check for
...SO EVERYTHING MUST BE METICULOUSLY PLANNED OUT BY BOTH PARTIES THROUGHOUT THE PROCESS
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information errors as well as see if anyone is not doing their jobs properly.
Potential problems and preparation It is very important to fully prepare for the change. The whole process involves collaboration between the company and payroll provider so everything must be meticulously planned out by both parties throughout the process. Internally, your payroll department may have used the same systems for a long time and will need to get used to a more modern way of working. In theory though, this should make everything much quicker because on-screen information is available at the click of a mouse.
In addition, you need to ensure your employees have a positive attitude towards the change. If finance, payroll and human resources are not all on-board and working in sync, you will run into problems. Not communicating information properly to everyone involved can also lead to errors and delays. It may be the case that vital material is not written down at all and is all in your employees’ heads. Finally, you must ensure your employees are educated about the new processes so that they understand how their new payslips will work – whether that is through email or an announcement. This has the added benefit of ensuring your payroll department does not have to deal with confused employees who need guidance.
PP
technical
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