Taking the risk out of new payroll adoption and implementation
The right payroll system plays an important part in running a healthy
But while businesses might be quick to grasp the many benefits of a great payroll solution... the actual task of transitioning and implementing a new system might not be so swift.
Because, when broken down, changing payroll looks like a daunting task. From the process of choosing the right system and payroll partner to the physical undertaking of the transition through to the implementation and beyond… picking up a new system easily sounds like a strain on business resources. Sticking with your old system is much less risky, right?
Wrong. By using an outdated payroll system, the risks are the same, if not worse. To de-risk a payroll software transition and implementation, you need to first equip yourself with the information that will make it successful.
Here’s what you need to know about mitigating the risks of a payroll software transition and find a payroll system and vendor that will help your business grow even stronger.
Unfortunately, past high profile payroll project failures at
When considering transitioning to a new payroll solution,
The new system may not be operational before a component of the old system fails. This leads to a premature transition to the new system before all integrations are fully tested, or before all groups of employees are fully identified, resulting in staff being inadvertently missed. Staff may not have been sufficiently trained on how to use the system which can result in missed entries and non-payments.
People or payments may have been incorrectly configured in the new system, or data may have been incorrectly imported. Additionally, insufficient training could lead to staff entering inaccurate information. Should this happen, you could be facing wrong payments and unhappy, disengaged employees.
It’s critical that the new payroll system can perform up-to-date calculations of tax and leave, social policy deductions and superannuation contributions. The system should also be able to provide accurate reports to the relevant statutory agencies in the right formats. These vary according to countries and state jurisdiction. Not meeting these requirements leaves a business in danger of serious fines.
Understand the key drivers for the change before you shop around for your new payroll system. There are many solutions out there and it's easy to lose sight of what your organisation really needs. Whether it's a specific functionality that's missing, an upcoming compliance deadline, the risk of equipment failure or the inability to extract the data you need, don't forget why you're looking to make the change.
First off, simplify your payroll requirements before you start the change process. There’s no point in replicating complicated or unnecessary processes when moving to a new system. Fewer components will make the transition easier to manage as well. Review payments, allowances, deductions
Now is a good time to
Look over existing data collection processes, and aim to consolidate these. This will simplify interfaces in the new system.
While it may seem obvious, maintain a good relationship with your current supplier during the migration of data into the new system. A disagreement could have a negative impact on the migration process as you may need their assistance to extract payroll data from the existing system and you will need them to keep supporting the legacy system until the migration is completed.
Keep the wider
To do this, highlight the benefits of the change. Because, while it's important to share information around functional changes like the new way to submit a timesheet, you should also focus on selling the new system and its benefits to employees. For the adoption to be a real success, employees need to know how the system will benefit them and encourage them to use it positively. For example, a new payroll system may mean that you can offer employees mobile apps that provide access to their payroll data in useful ways. This is a crucial part of your project so it's recommended that you put a communications plan into place before migration kicks off.
Choose a vendor with a proven track record of successful payroll implementations as this is the best indicator of stability and likelihood of a successful transition.
The best vendor or implementation partner should have a mature implementation process and methodology that they can readily share with you. It should describe the various stages of the project, identifying roles and responsibilities, scope and deliverables and timeframes involved.
Before you commit to the new system, give your
The implementation process should extend beyond the planning of the system, data migration, testing, parallel running and the cut over to the live system. It should demonstrate how account management processes will work post cutover, and how ongoing training and updates will be provided.
The way in which payroll systems are built and hosted can help mitigate implementation risks.
Multi-tenanted, cloud-based payroll systems, where
This negates the need to set up separate servers (virtual or physical), networking, secure access, server management, backups, patching, installing the payroll software before it can be configured. This is because it's already done and tested by other
We expect that within a few years, payroll systems that are not true cloud applications will be rare. On this basis, you should question any choice of a non-cloud system as this may mean that you have to undertake another migration in the near future.
Keep in mind the underlying reason for changing payroll systems. This helps you establish whether you've ultimately achieved success at the end of the project.
Changes to payroll systems needn't be a risky prospect. As long as you have a clear idea of what you're aiming to achieve and your payroll provider shares your vision, there's no reason why you can't de-risk the implementation of your new payroll software.
When considering transitioning to a new payroll solution, businesses need to understand the potential risks involved, as well as how these can be best managed.
While it can seem like a daunting task to change payroll systems, when approached with a clear focus on the purpose of changing the process should go smoothly.
Changing payroll systems? It's important to understand the risks involved with implementing a new software. This information will help make a smooth transition!