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How to mitigate the risk of payroll transition

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As your business grows and you get busier, it's normal to find that you have less time to dedicate to your staff and even internal processes. This is when you need to ensure that you have the right staff and tools in place - without them, your business may start crumbling from the inside which will eventually affect the business as a whole.

 Click here to learn more about how payroll software can improve employee engagement. 

Having an efficient payroll software is one example of how you can help your business run smoothly. However, transitioning to a new payroll system might feel like a big pipe dream. While it sounds like a good idea, transitioning to a new payroll system can be full of risk if done improperly. 

But transitioning to a new payroll system can bring too many benefits to your organisation to ignore. And it's important to understand that this transition is only a risk if you don't have a thorough plan in place. 

So in order to make your payroll transition a success, we've outlined some simple steps to follow. 

Step 1. Get rid of unnecessary payroll processes

In any payroll transition, your first step is to assess your current processes. How are they working for your business currently? Review your payments, allowances, deductions and benefits to ensure they're even still relevant to your business. If they are no longer in use, there's no point in replicating those processes in your new system. To understand if it's a necessary component of your payroll, just look at the last time it was used. If they haven't been used in over a year, they're likely unnecessary.

Also, make sure you're not carrying over unnecessary data. For example, review your employees on the payroll and ensure everyone still works with you. Consolidating data like this will make your transition to the new system faster. 

Step 2. Keep your current supplier close 

One of the biggest risks a business need to be aware of while transitioning is the fact that you might not be able to pay your people on time, or you might pay them incorrectly. If the new system isn't completely working before you've transitioned out of your old system, causing your employees to miss a paycheque, your employee engagement could suffer as a result. 

So, while you're transitioning to a new system, it's important to keep the relationship with your current supplier positive. Should anything get delayed or not transferred properly, you'll want them as a backup to help amend the situation as quickly as possible.

Step 3. Review the proposed implementation plan 

Your new payroll vendor should have a proven track record of successful payroll implementations, and therefore able to show you exactly what the implementation plan will look like. It's important that this strategy is clearly communicated to you so you know exactly what is to come during the transition to avoid risks like data falling through the cracks or missed paydays. 

This will also help you communicated the changes to the wider company in order to get them fully on board and engaging with the new payroll system. 

For more information on how to conduct a successful payroll software transition, download our eBook today!

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