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Three Key Strategies for Switching HR and Payroll Softwares

A broken employer-payroll provider union is similar to an unfortunate friendship or romantic partnership. You meet. You think you’re compatible. You dive right in. Then, the flaws begin to show. Deal-breaking flaws. You swear they weren’t there before. But then again, you’re not so sure. Maybe you just chose to ignore them. Either way, the relationship is over. It’s time to move on.

Whatever the reason, when it’s evident you and your payroll provider aren’t a good fit and you’re ready to take the plunge again, you want to get it right. While there are no guaranteed ways of securing the ideal fit, you can boost your chances of finding “the one” with these three strategies.

1. Seek the Total Package

With organizations actively looking to transform the way they manage and deliver HR services, there’s been a consistent shift toward solutions that combine the following processes into a single application:

  1. Talent Acquisition
  2. Time and Labor Management
  3. Payroll
  4. HR Management
  5. Benefits Administration
  6. Talent Management

By merging these six processes into one unified platform:

  • Information only needs to be keyed once, rather than separately into each application.
  • Data updates in real time, keeping you up to speed on what’s happening now in your business.
  • Manual entries are reduced, decreasing compliance errors and penalties.
  • Workflows are more organized, reporting is comprehensive and employee stress is alleviated.

Alternatively, you could go with different providers for each application. But while each program may perform well on its own, integrating them can be difficult. This scattered approach can lead to increased data entry, compliance mistakes and insufficient analytics.

Some HR and payroll providers offer a single-source application, which should not be confused with a single application. A single-source application generally requires integration of the different programs and may result in improper syncing of the programs and issues with reporting. A single application eliminates these issues because no integration is required – the solution is seamless from the get-go.

2. Look for Influencers Who Will Grow Your Business

Positive attributes yield favorable results. That’s the law of attraction. This same principle can be applied when switching HR and payroll providers. Think about the effects that you want the new provider to have on not just your HR and payroll professionals, but also on your employees, managers, supervisors, executives and information technology.

The right solution positively impacts stakeholders via:

  • Efficiency- Reduces paperwork and data entry via automated processes.
  • Reporting- Establishes key performance indicators that drive business growth.
  • Self-service- Empowers employees to self-manage HR and payroll transactions.
  • Compliance- Adheres to federal, state and local employment laws.


3. Perform a Dependability Check

Not all payroll providers have their clients’ best interests at heart. Studies show that at least two dozen payroll firms have been prosecuted by federal officials for allegedly pocketing over $300 million in tax funds from their clients.

Before you entrust your sensitive and confidential information to a payroll provider, look into their reputation, financial stability and ability to go the distance. Choose a provider that:

  • has a long history of profitability in the HR and payroll industry
  • implements strong internal controls and performs regular internal audits
  • is bonded for at least $100 million, which protects payroll funds against fraudulent activity
  • has been ISO 9001-certified for quality management purposes
  • owns the HR and payroll software they are selling

The above three strategies are critical when switching payroll companies, but they’re not the only ways to ensure you’re making the right call. For additional information, check out the free Paycom Webinar  “Top 7 Tips to Consider when Switching HR & Payroll Companies.”