The risk and pain of payroll software implementation


Understanding the influence that good payroll has on staff engagement is vital to the health of your company. A good payroll system reduces errors and problems which inevitably leads to a higher level of productivity and trust in the workplace. This, in turn, improves staff engagement.

Despite these benefits, there's still the perception that changing a payroll system is fraught with difficulty and risk. Companies are concerned about choosing the right software and payroll partner, the challenges around training and implementation, financial outlay as well as the time it takes to make the transition. For many, these reasons stand in the way of adopting a new payroll system.  

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

But often the benefits outweigh the risks. The key is to identify issues in advance like the ones listed below and address them in order to ensure a successful transition. The best way to do this is to find a respected payroll system that suits your company's needs and plan the transition with the help of an experienced vendor.  

Staff might not be paid on time

When an old payroll system fails, the move to a new system becomes a priority. But, a premature transition to a new system that might not yet be fully operational can lead to pay errors. It is best to avoid migration until all system integrations have been fully tested, all groups of employees are fully identified, and staff have been fully trained on the new system to avoid such errors. 

Incorrect pay

People or payments may have been uploaded incorrectly in the new system, or data hasn't been uploaded properly. Also, if staff don't receive sufficient training on the new system, they could enter incorrect information which will ultimately lead to incorrect wage payments and unhappy, disengaged employees.

Failure to meet legislative or compliance requirements

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 generate accurate reports in the correct format to the relevant statutory agencies. These can vary according to countries and state jurisdiction. If businesses don't comply with these requirements, they could face serious fines.

Losing sight of why you need a new payroll system

Understand what's driving the need to change your current system before you start shopping around for your new payroll system. There are many solutions in the market so 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 wanting to make the change.

Changing systems is seldom easy, or done without good reason. Once you've decided that you need to make the change, ensure that you keep all of the reasons in mind to help you choose the right software and partner. If you can do that, then half the battle is won.

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Datacom Payroll


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