Introducing a new system can meet resistance from employees used to the old methods. Overcoming this calls for successful change management tactics, similar to persuading a team to adopt an entirely different strategy instead of the one they’ve always known. Though it may seem like a bit of a hassle at the time, carrying out parallel https://adprun.net/5-steps-to-a-successful-payroll-implementation/ runs is one of the best ways to test how your new payroll system is working. Parallel runs simply means running the old payroll software parallel to the new software and then comparing the results to find any inconsistencies. The good news is, many of these payroll implementation mistakes are easily avoidable if you plan accordingly.

• Denis has likewise published book entitled ‘Selecting and Implementing HR and payroll software’, with the aim of demystifying the process and ensuring readers make the right selection decisions for them.
• In reality, many of today’s cloud-based payroll systems are extremely flexible and can be configured to fit your company’s exact needs.
• By refining project elements into a single page, this initiative means that everyone involved remains aligned with the intended outcomes.
• When moving to a new payroll system, you need understand if it can integrate all your HR, accounting and ledger software.

Because all software vendors charge differently for their products and services, it is important to work out the cost of ownership of each one over five years in order to make more accurate comparisons. One of the major stumbling blocks when implementing any new system is a failure to prepare adequately. Vital activity here includes cleansing your data, mapping processes and collating organisational rules and structures. Doing so will not only save you a lot of effort later on, it will also make it clearer what to look for when it comes to the product demonstration stage. It is worth bearing in mind that a change of software will not help if there are problems inherent in your own processes and operations. Just know what you want, and don’t be afraid to keep looking until you find the right payroll management system for your organization.

How long does payroll implementation take?

Another important consideration in selecting a vendor is how much work their team is committed to completing as part of your onboarding process. Is their definition of implementing the system to assign you due dates for loading data into the system, or is it loading the data for you? Find out which vendor employee or employees will be helping you and what their responsibilities are. After reading this article, you’ll know the steps involved in implementation starting from the moment you become a new customer so you can plan accordingly for a smooth transition. If an international PEO is contracted, they will generally take on all relevant international employer obligations, not just payroll. There are many companies delivering payroll implementation services in one or several countries.

• For a small business, we usually deal with the owner and in mid-size companies, a member of the payroll, HR team, or the office manager.
• Keep in mind that every country has its own employment laws and regulations.
• Ensure all signatories agree that introducing a new payroll system is a business priority and will not be suspended or shelved.
• To begin with, every particular region has specific regulations that companies need to comply with if they are planning on paying out funds in those countries.

Know what elements are non-negotiable for your operations, and ensure that these aspects are well-integrated into the new system. Conduct at least two parallel runs to compare outputs between the old and new systems. This helps in spotting discrepancies and ensuring both systems yield the same results.

Business processess

When you’ve gathered and considered enough relevant evidence, make your choice of provider based on the strongest quotes, bids and/or references and go on to plan the process further. Besides, the data from all of them will come to you in various formats, making it difficult to keep track of employment costs and compare them between different countries. Making a strategic decision will become a tedious task as extracting insightful information will require a lot of effort and time across multiple systems. Before we dive into its advantages, let’s take a moment to explore the ins and outs of payroll implementation and why it matters to HR professionals. This is especially true if the payroll company is exposed to currency translation risk. The list of international sanctions keeps growing, and this comes with stringent measures that prohibit partnerships with specific banks or financial institutions.

What are the key pillars of a successful payroll system?

Once you have an idea of what information you need and where it needs to go, ensure that the payroll provider you choose can accommodate your app requirements. You can then ask your new provider to help you properly set up the app integrations and run some tests to double-check that the information is following through correctly. With a local partner like Connect Resources, you can be sure that this process will be as easy as possible. We will ensure you can understand the regulations as well as we provide total compliance. Keep in mind that every country has its own employment laws and regulations. Therefore, if you’re planning on having a multinational workforce, you must comply with the payroll rules.

You may be eager to leave your old payroll system behind, but trying to rush through an implementation may end up replicating the same problems you have with your current payroll provider. A service provider is going to continuously evaluate your payroll system, so you can focus on your core business activities. You could look for a solution that fits your needs and partner with a third-party to ensure compliance and good operations. I have worked with quite a few small nonprofit organizations that did not have the staffing capacity to take on this responsibility. Getting the new payroll system set up the right way from the start will save time and headache for your staff down the line once the system is in use. Whether implementing a new payroll system or transitioning from your old one, timing is very important.

Top 8 Tips For Successful Payroll System Implementation

While other providers take employee data, add it to the system and fix any problems later, Paycor focuses on accuracy, efficiency and understanding your specific needs. For standard requirements, it’s more efficient to create the security profiles individually and include them in appropriate HCM data roles. Three critical success factors in the payroll software implementation planning process include processes, data and third party partners.

You may use an in-house payroll function or outsource this work to a third-party organization, either solely for payroll purposes, or as part of a wider Professional Employer Organization contract. Your best option depends on the extent of your overseas operations, the capability and capacity of your in-house teams, and the speed of any international expansion. Employee payroll data needs appropriate data protection levels because it is susceptible to data security breaches. You might comply with data security regulations of the place where your headquarters are, but you also need to adhere equally to all locations of your operation. The time frame for payroll implementation varies depending on the complexity of the organization’s needs and the system being implemented.

Emphasis on data accuracy

You can customize it to fit your HR needs, and since it’s cloud-based, you can use it from anywhere at any time. Assign a competent leader, typically from the payroll or HR team, to manage the implementation process. Depending on your organization’s size, this team might include additional members, each playing a crucial role in the transition.